Tax relief on retirement for certain income of certain sportspersons
Section 480A TCA 1997 provides a tax relief in the form of an income tax rebate for a sportsperson on his or her retirement. The rebate is claimed as a 40% deduction on certain income over a ten year period.
The 40% deduction is not taken into consideration for the purposes of calculating the sportsperson’s net relevant earnings under Retirement Annuity Relief. Finance Bill 2016 extends this treatment to Personal Retirement Savings Accounts with effect from 1 January 2017.
Revenue guidance in the area has been updated to reflect this.