Revenue Note for Guidance
Chapter 1 of Part 15 sets out the personal income tax reliefs available to individuals. Most of the reliefs are formal tax credits which are set against the income tax otherwise payable. Others are determined by reference to the standard rate of income tax, in effect, also tax credits. The balance are given by way of a deduction from income and accordingly attract relief at the taxpayer’s marginal rate of tax.
The initial sections of the Chapter (that is, sections 458 to 460) are concerned with providing for general provisions applicable to all the reliefs provided for in the Chapter. These general provisions are also applicable to certain other reliefs set out elsewhere in this Act. These other reliefs are listed in the Table to section 458.
(1) This section provides that an individual on making a claim and on submitting a return of his/her total income on the prescribed form is, subject to the rules governing the various tax credits, deductions and reliefs, entitled —
(1A) Where an individual is entitled to a tax credit specified in Part 2 of the Table to the section, that tax credit is to be used to reduce the tax charged on an individual, other than under section 16(2), by the lesser of—
(1B) The requirement for a claim for relief to be accompanied by a return of income does not apply where the claim is —
A self-employed person with PAYE income is covered by (a), but not (b) – in that instance they continue to be obliged to submit a return of income.
(2) The Table to the section lists the sections under which a deduction from total income, a tax credit or reduction in tax may be made. All claims for such deductions from total income, tax credits and such reductions in tax must be made in accordance with subsections (3) and (4) of section 459 and paragraph 8 of Schedule 28. In strictness, therefore, before any of the reliefs specified in the Table can be granted, a claim and a return of income on the prescribed form must be made. In practice, however, this requirement is generally not enforced.
Part 1 |
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(Relief for owner occupiers) |
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(Relief for owner occupiers, Living City Initiative) |
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(Employed person taking care of incapacitated individual) |
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(Relief for health expenses) |
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(Relief for contributions to permanent health benefit schemes) |
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(Relief for the long-term unemployed) |
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(Earned income tax credit) |
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(Seafarer allowance, etc) |
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(Fisher tax credit) |
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(Relief for new shares purchased on issue by employees) |
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(Relief for investment in films) |
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(BES and Seed Capital relief) |
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(Seed capital relief) |
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Paragraphs 12 and 20 of Schedule 32 |
(Transitional Provisions) |
Part 2 |
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(Relief for interest paid on certain home loans) |
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(Basic personal tax credit) |
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(Additional tax credit for certain widowed persons) |
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(Single person child carer credit) |
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(Widowed parent tax credit) |
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(Age tax credit) |
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(Incapacitated child tax credit) |
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(Dependent relative tax credit) |
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(Home carer tax credit) |
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(Blind person’s tax credit) |
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(Relief for insurance against expenses of illness) |
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(Relief for premiums under qualifying long-term care policies) |
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(Employee tax credit) |
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(Relief for trade union subscriptions) |
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(Allowance for rent paid by certain tenants) |
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(Relief for fees paid for third level education etc.) |
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(Relief for fees paid for training courses) |
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(Relief for service charges) |
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(Relief for payments made by certain persons in respect of alarm systems) |
Relevant Date: Finance Act 2019