Taxes Consolidation Act 1997 section 485G

Miscellaneous (Chapter 2A)

Section 485G provides additional guidance on the operation of the high earner restriction, addressing DIRT refunds, the interaction with capital allowances, the treatment of exempt income, and the disapplication of income exemption limits.

• Permanently incapacitated individuals retain the right to claim a DIRT refund despite the high earner restriction, and individuals are treated as having received the full benefit of all reliefs for a given tax year even where those reliefs are limited by the restriction.
• Calculations of the "unallowed amount" under the capital allowances regime ignore the restriction, and any balancing charge that would be inflated as a result of the restriction is reduced to what it would have been without the restriction, with a corresponding reduction in the pool of excess relief carried forward.
• Where an individual's taxable income as recalculated under the restriction exceeds total income chargeable under the Schedules, the surplus is deemed to be Case IV income taxable at the standard rate, but this deemed income is excluded from total income and is disregarded when determining whether the restriction applies.
• The calculation of other reliefs, deductions and credits is carried out as if the restriction did not apply, and the income exemption and marginal relief provisions of sections 187 and 188 are disapplied for any year in which the high earner restriction applies.