Direct Tax Acts, Finance Act 2018

15 Rate of charge
FA91 s2(1) and (2); FA97 s2; FA99 s3; FA00 s3; FA01 S3; FA02 s2; FA05 s2; FA06 s2; FA07 s2; FA08 s2; F(No. 2)A08 s4; FA11 s4; F(No. 3)A11 s1(2) and Sch1(8)–(9); F(No. 2)A13 s7(1)(c); FA14 s3; FA17 s3; FA18 s3

(1) Subject to subsection (2), income tax shall be charged for each year of assessment at the rate of tax specified in the Table to this section as the standard rate.

[(2) Where a person who is charged to income tax for any year of assessment is an individual (other than an individual acting in a fiduciary or representative capacity), such individual shall, notwithstanding anything in the Income Tax Acts but subject to section 16(2), be charged to tax on such individual’s taxable income –

(a) in a case in which such individual is assessed to tax otherwise than in accordance with [section 1017 or 1031C]2 and is not an individual referred to in paragraph (b), at the rates specified in Part 1 of the Table to this section, or

(b) in a case in which the individual is assessed to tax otherwise than in accordance with [section 1017 or 1031C]3 and is entitled to a reduction of tax provided for in [section 462B]4, at the rates specified in Part 2 of the Table to this section, or

(c) subject to subsections (3) and (5), in a case in which such individual is assessed to tax in accordance with [section 1017 or 1031C]5, at the rates specified in Part 3 of the Table to this section,

and the rates in each Part of that Table shall be known respectively by the description specified in column (3) in each such Part opposite the mention of the rate or rates, as the case may be, in column (2) of that Part.

(3) Subject to subsections (4) and (5)

(a) where an individual is charged to tax for a year of assessment in accordance with [section 1017 or 1031C]6, and

(b) both the individual and his or her[spouse or civil partner]7 are each in receipt of income in respect of which the individual is chargeable to tax in accordance with that section,

the part of his or her taxable income chargeable to tax at the standard rate specified in column (1) of Part 3 of the Table to this section shall be increased by an amount which is the lesser of –

(i) [€26,300]8, and

(ii) the specified income of the individual or the specified income of the individual’s[spouse or civil partner]9, whichever is the lesser.

[(4) For the purposes of subsection (3), “specified income” means total income after deducting from such income any deduction attributable to a specific source of income and any relevant interest within the meaning of Chapter 4 of Part 8]10.

(5) Where all or any part of an increase under subsection (3) in the amount of an individual’s taxable income chargeable to income tax at the standard rate is attributable to emoluments from which tax is deductible in accordance with the provisions of Chapter 4 of Part 42 and any regulations made thereunder, then, the full amount of the increase, or that part of the increase, as may be appropriate in the circumstances, shall only be used in accordance with the provisions of that Chapter and those regulations in calculating the amount of tax to be deducted from those emoluments.]1

[TABLE

PART 1

Part of taxable income

Rate of tax

Description of rate

(1)

(2)

(3)

The first €35,300

20 per cent

the standard rate

The remainder

40 per cent

the higher rate

PART 2

Part of taxable income

Rate of tax

Description of rate

(1)

(2)

(3)

The first €39,300

20 per cent

the standard rate

The remainder

40 per cent

the higher rate

PART 3

Part of taxable income

Rate of tax

Description of rate

(1)

(2)

(3)

The first €44,300

20 per cent

the standard rate

The remainder

40 per cent

the higher rate

]11

Go to Revenue Guidance Notes on TCA

Amendments

1 Ss(2) substituted and ss(3), (4) and (5) inserted by FA00 s3(a) for 2000–01 and subsequent years of assessment

2,3,5,6 Substituted by F(No. 3)A11 s1(2) and Sch1(8) and deemed to have come into operation—

(a) in relation to income tax, domicile levy and universal social charge, for the year of assessment (within the meaning of the Income Tax Acts) 2011 and subsequent years of assessment,

(b) in relation to corporation tax (within the meaning of the Corporation Tax Acts) for accounting periods of companies (within that meaning) ending on or after the passing of Finance (No. 3) Act 2011 – 27 July 2011,

(c) in relation to capital gains tax, for the year of assessment 5 (within the meaning of the Capital Gains Tax Acts) 2011 and subsequent years of assessment.

4 Substituted by F(No. 2)A13 s7(1)(c) and applying for the year of assessment 2014 and subsequent years of assessment

7,9 Substituted by F(No. 3)A11 s1(2) and Sch1(9) and deemed to have come into operation—

(a) in relation to income tax, domicile levy and universal social charge, for the year of assessment (within the meaning of the Income Tax Acts) 2011 and subsequent years of assessment,

(b) in relation to corporation tax (within the meaning of the Corporation Tax Acts) for accounting periods of companies (within that meaning) ending on or after the passing of Finance (No. 3) Act 2011 – 27 July 2011,

(c) in relation to capital gains tax, for the year of assessment 5 (within the meaning of the Capital Gains Tax Acts) 2011 and subsequent years of assessment.

8 Substituted by FA18 s3(a) and applying as respects the year of assessment 2019 and subsequent years of assessment

10 Substituted by FA01 s3(a) with effect for 2001–02 and subsequent years of assessment

11 Substituted by FA18 s3(b) and applying as respects the year of assessment 2019 and subsequent years of assessment

Case Law

Lower rate of tax pertained to interest accruing on monies held by solicitor on his client’s behalf. O’Cahill (Inspector of Taxes) v O’Driscoll & Others – Unreported High Court, 9th June 2005

Corresponding UK Tax Provision

Formerly Section 1(2), Income and Corporation Taxes Act 1988. Now re-enacted at various places in the Income Tax Act 2007. Refer to the Destination Table of that Act for details.

Sections referred to in text

section 16 [Income tax charged by deduction]

section 462B [Single person child carer credit]

section 1017 [Assessment of husband in respect of income of both spouses]

Cross references

3 Interpretation of Income Tax Acts

153 Distributions to non-residents

261B Taxation of specified interest

466A Home carer’s allowance

508B Statement of qualification (second stage relief) by qualifying company

730J Payment in respect of foreign life policy

730K Disposal of foreign life policy

747D Payment in respect of offshore funds

747E Disposal of an interest in offshore funds

1024 Method of apportioning reliefs and charging tax in cases of separate assessments

1031I Method of apportioning reliefs and charging tax in cases of separate assessments