Taxes Consolidation Act 1997 section 480A

Relief on retirement for certain income of certain sportspersons

Section 480A provides income tax relief for certain professional sportspersons on their retirement from sport.

• A qualifying sportsperson may claim a deduction equal to 40% of gross sporting receipts (before expenses) for up to 10 years of assessment chosen from the retirement year and the 14 preceding years, with the claim made within four years of the end of the retirement year.
• The relief applies only to income derived wholly and exclusively from direct participation in the sport, such as salaries, match fees, prize money, and appearance fees, and excludes sponsorship income, advertising receipts, endorsement fees, and image rights income.
• The relief is given by way of repayment of tax, carries no interest on repayments, cannot create or augment a loss, and does not reduce net relevant earnings for the purposes of retirement annuity or PRSA contribution relief.
• If a sportsperson who has received the relief subsequently recommences professional participation in the sport, the relief is withdrawn by assessment under Case IV of Schedule D for the years in which it was originally given, though a fresh claim may be made if the person later retires again.