Taxes Consolidation Act 1997 section 669O

Exemption in respect of the catch sum

Section 669O provides for a 50% reduction in taxable profits where a fishing licence holder is chargeable to tax on the catch sum element of the Brexit compensation sum, and allows an election for a matching deduction in respect of any temporary tie-up payment included in that catch sum.

• Where a licence holder is taxable under Schedule D on the catch sum, the chargeable profits are reduced by 50% of the total catch sum, and this reduction also applies for PRSI and USC purposes.
• If a temporary tie-up payment (TTUP) forms part of the catch sum, the licence holder may elect to have a deduction of up to 50% of the TTUP applied in the chargeable period in which the TTUP was taxed, allowing the deduction to be matched with the period of receipt.
• The combined reduction for the catch sum and any deduction for the TTUP cannot exceed 50% of the total catch sum.
• The licence holder may amend a return and self-assessment to make the TTUP election within four years of the end of the chargeable period in which the Brexit compensation sum is received, and any resulting overpayment may be repaid notwithstanding the normal time limits.