Latest Revenue Guidance Updates: Understanding Recent Changes

Content accurate as at 31.03.2023

Guidance on Termination Payments has been updated

Revenue has amended its Tax Tax Manual regarding payments on termination of an office/employment.

The updated manual contains a reference to Appendix V of the Pensions Manual, which contains detailed guidance on how to calculate the Relevant Capital Sum.

Pensions Manual – Appendix V has also been amended to include an effective date for this guidance and a reference to the use of this guidance for the purposes of the calculation of the increase in basic exemption has been added.

Updates to Pre-letting Expenses

Revenue has updated its Tax and Duty Manual regarding pre-letting expenses to reflect changes to section 97A Taxes Consolidation Act 1997 in Finance Act 2022.

Paragraph 1 states that the period for which the property must have been vacant has been reduced from 12 months to 6 months.

Paragraph 4 states the cap on the allowable deduction for the expenditure has been increased from €5,000 to €10,000.

Both changes took effect from 1 January 2023.

Exemption from Income Tax in respect of Certain Payments made under Employment Law

Revenue has updated its Tax and Duty Manual regarding the exemption from Income Tax in respect of certain payments made under Employment Law as follows:

Paragraph 2 has been amended to update the definitions of both “relevant Act” and “relevant authority”.

Paragraph 3 is updated to reflect the expanded opportunities for mediation under the Workplace Relations Act.

Appendix 2 has been updated with redrafted examples of how the exemption operates in practice.

Updated Stamp Duty Manual – Section 83E: Repayment of Stamp Duty where certain residential units leased (social housing)

Revenue has updated its Tax and Duty Manual regarding the repayment of stamp duty paid on the acquisition of residential property at the rate of 10 percent where the property is subsequently leased, for a term of at least 10 years, to a local authority or an approved housing body for the provision of social housing pursuant to Section 83E SDCA 1999.

The updated manual includes detailed step-by-step guidance on how to make a repayment claim using Revenue’s eRepayments system, which can be accessed through ROS or myAccount. In addition, the existing contents of the manual have been updated and refreshed to provide clearer and more detailed guidance on the operation of section 83E.