Revenue Note for Guidance

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Revenue Note for Guidance

Part 36

Miscellaneous Special Provisions

Overview

This Part contains a number of sections which provide for a range of unconnected taxation measures which apply to specific classes of persons or businesses. Some of the measures provide for tax reliefs or favourable taxation regimes for certain investments (for example, section 838 provides for a favourable tax regime for investments in special portfolio investment accounts). Other measures are aimed at preventing tax loss, such as section 840 (which restricts various tax reliefs where business entertainment is involved) and section 840A (which denies a trading deduction for interest payable on intra-group borrowings to purchase assets from a connected company).

836 Allowances for expenses of members of Oireachtas

(1)(1A) This section provides that allowances payable to members of the Oireachtas under section 3 of the Oireachtas (Allowances to Members) and Ministerial and Parliamentary Offices (Amendment) Act 1992, section 2 of the Oireachtas (Allowances to Members) Act 1938, section 5 of the Oireachtas (Allowances to Members) and Ministerial and Parliamentary Offices (Amendment) Act, 1964 and section 1 or 2 of the Oireachtas (Allowances to Members) Act 1962 are exempt from income tax.

(1B) This section also provides that the parliamentary standard allowance payable under section 3 of the Oireachtas (Allowances to Members) and Ministerial and Parliamentary Offices Act 2009 is exempt from income tax.

(2) Those allowances are in full settlement of expenses which a member is obliged to incur in the performance of his/her duties as a member of the Oireachtas and which are not otherwise directly reimbursed. A member is not entitled to claim a deduction under sections 114 or 115 in respect of those expenses even to the extent that the amount incurred exceeds the allowance payable. However, Ministers of the Government, Ministers of State and the Attorney General may claim a deduction under section 114 in respect of expenses incurred in maintaining a second residence where the maintenance of a second home arises out of the performance of their duties as an office holder or member of the Oireachtas. Such expenses shall not include local property tax payable under section 16 of the Finance (Local Property Tax) Act 2012 or the charge for water services payable under section 21 of the Water Services (No.2) Act 2013. The deduction under section 114 is restricted to TDs who represent constituencies outside the Dublin area or Senators whose main residence is outside that area.

Relevant Date: Finance Act 2019