Taxes Consolidation Act 1997 section 485D

Application (Chapter 2A)

Section 485D sets out the conditions under which the high earner restriction applies to an individual for a tax year.

• The restriction applies where an individual's adjusted income for the tax year equals or exceeds the income threshold amount and the aggregate of specified reliefs used in respect of the tax year equals or exceeds the relief threshold amount.
• Even where both thresholds are met, the restriction does not apply if 20 per cent of the individual's adjusted income equals or exceeds the aggregate of specified reliefs used for the tax year.
• Where the restriction does not apply under the 20 per cent rule, section 485F may still apply independently.
• The section was introduced by the Finance Act 2006 and subsequently amended by the Finance Acts of 2007 and 2010.