Section 188 Age exemption and associated marginal relief

Source

Taxes Consolidation Act 1997 section 188.

(1) In this section ―

“income tax payable” has the same meaning (inserted by the Finance Act, 2001) as in section 3, but without regard to any reduction of tax under section 244;

“total income” has the same meaning as in section 3, but includes income arising outside the State which is not chargeable to tax.

(a) in a case where the individual would apart from this section be entitled to a tax credit specified in section 461(a) (inserted by the Finance Act, 2001), €36,000, and

(b) in any other case, €18,000.

Amendments

Finance Act 2001 section 4(a)(i).

Finance Act 2011 section 5.

(2A)(a) For the purposes of this section, where a claimant proves that he or she has living at any time during the year of assessment any qualifying child then, subject to subsection (2B), the specified amount (within the meaning of this section) shall be increased for that year of assessment by—

(i) €575 in respect of the first such child,

(ii) €575 in respect of the second such child, and

(iii) €830 in respect of each such child in excess of 2.

(b) Any question as to whether a child is a qualifying child for the purposes of this section shall be determined on the same basis as it would be for the purposes of section 462B, but without regard to subsections (1)(b), (1)(c), (3) and (5) of that section.

Amendments

 Finance Act 2008 section 5(b)(iii).

Finance (No. 2) Act 2013 section 7(1)(d).

(2B) Where for any year of assessment 2 or more individuals are, or but for this subsection would be, entitled under subsection (2A) to an increase in the specified amount, (within the meaning of this section) in respect of the same child, the following provisions shall apply:

(a) only one such increase under subsection (2A) shall be allowed in respect of each child;

(b) where such child is maintained by one individual only, that individual only shall be entitled to claim the increase;

(c) where such child is maintained by more than one individual, each individual shall be entitled to claim such part of the increase as is proportionate to the amount expended on the child by that individual in relation to the total amount paid by all individuals towards the maintenance of the child;

(d) in ascertaining for the purposes of this subsection whether an individual maintains a child and, if so, to what extent, any payment made by the individual for or towards the maintenance of the child which that individual is entitled to deduct in computing his or her total income for the purposes of the Income Tax Acts shall be deemed not to be a payment for or towards the maintenance of the child.

Amendments

 Finance Act 2008 section 5(b)(iii).

(3) This section shall apply for any year of assessment to an individual who makes a claim for the purpose, makes a return in the prescribed form of his or her total income for that year and proves that, at some time during the year of assessment, either the individual or, in a case where the individual would apart from this section be entitled to a tax credit specified in section 461(a), the spouse or civil partner of the individual was of the age of 65 years or over.

Amendments

 Finance Act 2001 section 4(a)(ii).

 Finance (No. 3) Act 2011 section 1(2).

(4) Where an individual to whom this section applies proves that his or her total income for a year of assessment for which this section applies does not exceed the specified amount, the individual shall be entitled to exemption from income tax for that year.

(5) Where an individual to whom this section applies proves that his or her total income for a year of assessment for which this section applies does not exceed a sum equal to twice the specified amount, the individual shall be entitled to have the amount of income tax payable in respect of his or her total income for that year, if that amount would but for this subsection exceed a sum equal to 40 per cent of the amount by which his or her total income exceeds the specified amount, reduced to that sum.

(6)(a) Subsections (1) and (2) of section 459 and section 460 shall apply in relation to exemption from tax or any reduction of tax under this section as they apply to any allowance, deduction, relief or reduction under the provisions specified in the Table to section 458.

(b) Subsections (3) and (4) of section 459 and paragraph 8 of Schedule 28 shall, with any necessary modifications, apply in relation to exemption from tax or any reduction of tax under this section.

Amendments

Finance Act 2008 section 5(b)(iv).