Revenue has published a new Tax and Duty Manual to provide guidance on the application of the leasing ringfence in sections 403 and 404 TCA 1997. The ringfence is intended to prevent the creation of tax advantages using leasing structures by restricting how excess capital allowances arising from leased machinery and plant may be used by a leasing company or group. Section 403 TCA 1997 places a ringfence around the leasing of machinery or plant generally such that capital allowances on leased machinery or plant can be set off only against leasing income, or amounts arising from “lease-adjacent” activities and not against any other income or gains of the company or wider group.  Section 404 TCA 1997 places additional restrictions on “balloon leases.” These are leases that are structured to give rise to accelerated allowances while deferring the taxation of lease receipts to the end of the lease. This ringfence may also apply to certain restructuring and sale and leaseback arrangements.  It is to be noted that these ringfences are independent of one another, apply to different types of leases, and have different rules regarding the usage of restricted allowances.

Revenue has updated the Tax and Duty Manual which provides guidance on the anti-hybrid rules. The amendments are as follows: Section 1: Introduction to hybrid mismatches, to clarify that OECD guidance on hybrid mismatches cannot be relied upon to disapply the hybrid mismatch rules in ATAD2, as transposed into Part 35C. Section 2: Mismatch outcomes, updated to introduce the concept of primary and defensive anti-hybrid rules. Section 3: Interpretation (Section 853Z), updated to include definitions of ‘deduction’ and ‘structured arrangement’. Section 4.2.1 Section 835Z(1)(a), updated to include an example of a territory that applies tax to some, but not all, entities. Section 5.1 Worldwide system of taxation, updated to include guidance on how to deal with loss making branches with trapped losses Section 7.1.1 Associated enterprises, updated to clarify scenarios where a 50 per cent Associated Enterprise Test Applies instead of a 25 per cent test.

Revenue has updated several Tax and Duty Manuals (TDMs) following amendments introduced by Finance Act 2024. The updated manuals are as follows: Sea-Going Naval Personnel Tax Credit has been extended to the 2029 year of assessment. Incapacitated Child Tax Credit has been increased to €3,800, from €3,500, with effect from 1 January 2025. Employee (PAYE) Tax Credit has been increased to €2,000, from €1,875 for 2025 and subsequent years. Earned Income Tax Credit has been increased to €2,000, from €1,875 for 2025 and subsequent years.

Revenue has updated the Tax and Duty Manual which provides guidance on the Help to Buy scheme to reflect the extension of the scheme to 31 December 2029. In addition, following a technical amendment to the definition of “Qualifying Residence” introduced in Finance Act 2024. The amendment ensures that a newly constructed property purchased by a Local Authority for onward sale to an affordable purchaser under the Local Authority Affordable Purchase Scheme is eligible for Help to Buy.

certain payments received under the Brexit Voluntary Permanent Cessation Scheme (the Decommissioning Scheme). The Decommissioning Scheme provided for compensation payments to certain fishing vessel owners in exchange for the permanent withdrawal of vessels from the polyvalent and beam trawl segments of the Irish fishing fleet and their removal from the EU register of sea fishing vessels.  The manual has been updated to reflect that a licence holder who availed of the Decommissioning Scheme may elect to have a deduction of up to 50 percent of the Temporary Tie Up Payment (TTUP) taken into account in the chargeable period in which the TTUP is chargeable to tax.  

Revenue has updated the Tax and Duty Manual which provides guidance on the relief from corporation tax to new start-up companies under section 486C TCA 1997. The relief is computed by reference to Employer's PRSI contributions paid by the company during the year. The updated guidance reflects changes introduced by Finance Act 2024, whereby relief can also be computed by reference to Class S PRSI contributions paid by certain company directors/owners for accounting periods beginning on or after 1 January 2025. The guidance has also been amended to provide new and updated examples and information on the operation of the relief, as well as a restructuring of the content for ease of reading.

Revenue has updated the Tax and Duty Manual regarding the Charitable Donation Scheme for tax relief for donations to approved bodies. The updated guidance confirms that, with effect from 1 January 2025, the two-year waiting period for eligibility for the scheme no longer applies (paragraph 7). Also, where a charity has merged or restructured into another entity, the condition that the predecessor entity must have been approved for two years before the "successor body" is eligible for the no longer applies.

Revenue has updated the Stamp Duty Manuals that provide guidance on relief from stamp duty in respect of transfers of agricultural land to young trained farmers and in respect of certain leases of farmland executed on or after 1 July 2018. Relief from stamp duty in respect of transfers of agricultural land to young trained farmers is provided under section 81AA SDCA 1999. The updated manual reflects the Finance Act 2024 amendments whereby: the active farmer condition may be met where the land is farmed through a company, where certain conditions are satisfied; a clawback will apply where the transferee fails to comply with the condition to farm the land for 50 percent of their normal working time. Stamp duty relief in respect of certain leases of farmland executed on or after 1 July 2018 is provided under section 81D SDCA 1999. It applies in respect of a lease for a term of 6 to 35 years of any lands which are used exclusively for farming carried on by the lessee on a commercial basis and with a view to the realisation of profits. The updated manual reflects the Finance Act 2024 amendments whereby: the legislation states that this relief, being a State aid, is granted in accordance with Commission Regulation (EU) No 1408/2013 of 18 December 2013; the relief may be claimed where the lessee is a company, where certain conditions are met.

Revenue has updated the Tax and Duty Manual which provides guidance on a tax deduction for farmers for increases in stock values, which is known as "stock relief" under section 666 TCA 1997 to reflect the extension of the relief to 31 December 2027.

Revenue has updated the Tax and Duty Manual which provides guidance on accelerated capital allowances for farm safety equipment under section 285D TCA 1997 to reflect amendments in Finance Act 2024. The list of items qualifying for accelerated capital allowances for farm safety equipment has been expanded to include certain equipment that qualifies for Targeted Agricultural Modernisation Scheme grants including calving gates, livestock monitors, floodlights for farmyards and slider/roller doors for agricultural buildings.

Revenue has published an overview of the EU VAT SME Scheme. Current provisions allow Member States to set their national VAT registration thresholds within EU rules whereby, in general, a business operating below these thresholds and making domestic supplies of goods and services is not required to register and account for VAT. However, no de minimis threshold applies where an Irish business makes supplies in another Member State. They must immediately register and account for VAT in the Member State where the supply takes place. From 1 January 2025, the EU VAT SME Scheme will allow eligible small traders the option to avail of thresholds in the other Member State and not register for VAT when supplying goods and services there.  The scheme is optional and Irish businesses wishing to register to use the scheme in other Member States must make a formal application to Revenue. The eligibility requirements include that the business must: be established for VAT purposes in Ireland only; not exceed the domestic turnover threshold(s) of the other Member State(s) where supplies are made; not exceed the Union turnover threshold of €100,000; be registered in Ireland to use the scheme (separate registration process); and       file quarterly reports once registered. Further information in available in eBrief No. 315/24.

Revenue has updated the Tax and Duty Manual which provides guidance on the Residential Premises Rental Income Relief (RPRIR) available under section 480C TCA 1997. The updated manual reflects amendments introduced by Finance Act 2024. The key changes are as follows: Relief is not available where a landlord has an overall Case V rental loss or where the landlord's overall rental profit is lower than the amount of the RPRIR (paragraph 2). The death of a landlord will not trigger a claw-back of RPRIR (paragraph 4). Where an individual is no longer entitled to the relief, the amount of relief clawed back will be the same as the amount of relief claimed.