Other exemptions

The other main exemptions from income tax are:

  • Personal injury settlements (s 189), payments from the Haemophilia HIV Trust (s 190), Hepatitis C compensation (s 191), and payments in respect of thalidomide victims (s 192).
  • Income of artists, writers and composers, subject to an overall annual limit of €50,000 (s 195).
  • Interest on savings certificates (s 42) and instalment savings schemes (s 197).
  • Income of recognised charities (s 207).
  • Income of amateur sports bodies (s 235).
  • Rent from let farmland (s 664). A claimant must be aged 55 or over, or unable through physical or mental incapacity to carry on farming. Exemption is given for the lower of:
  • the farm rental income surplus, or
  • €40,000 where the lease is for more than 14 years, €30,000 where the lease is for 10 to 14 years, €22,500 where the lease is for seven to 10 years, or €18,000 in any other case.
  • Rent-a-room relief (s 216A). Income from lodgers is exempt provided your gross income from such letting does not exceed €14,000 in the tax year. From 01.01.2019 the minimum rental period must be 28 days.
  • Home childcare earnings of up to €15,000 in the tax year (s 216C).
  • Special assignee relief programme – SARP (s 825C). 30% of income above €75,000 in the case of employees assigned from a tax treaty country to work in their employer’s Irish operation. For 2020, the relievable income limit per employee is €1m. This limit also applies for 2019 as regards assignees arriving in Ireland in 2019.
  • Start Your Own Business relief (s 472AA). Where a person previously long-term unemployed sets up a business, the first €40,000 of profits in a tax year are exempt. Expires 31.12.2018.

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