Section 466 [Dependent relative tax credit]
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Amendments
Section 466 and heading substituted by Finance Act 2001 section 2(3) and Schedule 1 para 1(l) for 2001 and later tax years.
(1) In this section "specified amount" means an amount which does not exceed by more than [€280]1 the aggregate of the payments to which an individual is entitled in a year of assessment in respect of an old age (contributory) pension at the maximum rate under the [Social Welfare Consolidation Act 2005,]2 if throughout that year of assessment such individual were entitled to such a pension and-
(a) has no adult dependant or qualified children (within the meaning, in each case, of that Act),
(b) is over the age of 80 years (or such other age as may be specified in that Act for the time being in place of 80 years),
(c) is living alone, and
(d) is ordinarily resident on an island.
Amendments
1 Substituted by Finance Act 2001 section 2(3) and Schedule 1 para 2(h)(i) as respects 2002 and later tax years.
2 Substituted by Finance Act 2007 section 128 and Schedule 4 para 1(I) as on and from 2 April 2007.
What restrictions apply to the dependent relative tax credit?
(1) If the dependent relative's own income exceeds the maximum individual contributory old age pension for an 80 year old (i.e., the specified limit) by more than €280 for the tax year, the tax credit is restricted by the amount of the excess....
(2) Where for any year of assessment a claimant proves that he or she maintains at his or her own expense any person, being-
(a) a relative of the claimant, or of the claimant's spouse, incapacitated by old age or infirmity from maintaining himself or herself,
(b) the widowed father or widowed mother of the claimant or of the claimant's spouse, whether incapacitated or not, or
(c) a son or daughter of the claimant who resides with the claimant and on whose services the claimant, by reason of old age or infirmity, is compelled to depend,
and being an individual whose total income from all sources for that year of assessment does not exceed a sum equal to the specified amount, the claimant shall be entitled in respect of each individual whom the claimant so maintains to a tax credit (to be known as the "dependent relative tax credit") of [€80]1 for the year of assessment.
Amendments
1 Substituted by Finance Act 2006 Section 3 and Schedule 1 para 1(g).
(3) Where 2 or more individuals jointly maintain any individual referred to in paragraphs (a) to (c) of subsection (2), the tax credit to be granted under this section in respect of that individual shall be apportioned between them in proportion to the amount or value of their respective contributions towards the maintenance of that individual.
