Taxes Consolidation Act 1997 section 531AM

Charge to universal social charge - USC

Section 531AM sets out the charging provisions for universal social charge (USC), defining the types of income that are chargeable and the exemptions and reliefs that apply.

• USC is charged on two categories of income: "relevant emoluments" (employment income subject to PAYE) and "relevant income" (income from all other sources)
• Relevant emoluments include certain amounts normally exempt from income tax, such as share scheme gains and SARP relief, but exclude social welfare payments, termination payment exemptions and employer pension contributions
• Relevant income is calculated before most deductions but allows relief for trading losses carried forward, certain capital allowances and maintenance payments, while disallowing deductions for donations and certain property reliefs
• An individual whose aggregate income for the year does not exceed €13,000 is exempt from USC