Taxes Consolidation Act 1997 section 848D

Tax credits

Section 848D provided for the treatment of subscriptions to a special savings incentive account as grossed-up payments from which income tax had been deducted, and for the crediting of a corresponding tax credit to the account.

• Where a qualifying individual, or their spouse, subscribed to an SSIA, the subscription was treated as a net amount from which income tax at the standard rate for 2001 (20 per cent) had been deducted.
• The qualifying individual was treated for the purposes of the Tax Acts as having paid a grossed-up amount — that is, the amount which, after deducting income tax at 20 per cent, left the actual subscription paid.
• The individual was entitled to have the deemed income tax amount (the "tax credit") credited to their SSIA.
• The tax credit could only be claimed under the SSIA provisions in Part 19A and not under any other provision of the Tax Acts.