Friday, June 4, 2010

Tax Reliefs for High Earners

Certain tax breaks available to high income earners are restricted with a tapering restriction applying to individuals with income in excess of €250,000. The amount of relief’s that an individual may claim in any year is limited to a greater of 50% of certain relief’s including all property incentive schemes or €250,000 whichever is greater. Any relief denied in a particular tax year may be carried forward. The impact of this is to ensure a minimum payment of tax at c.20%.

In the case of married couples each spouse is treated separately when calculating this relief and therefore the threshold of €250,000 applies to each spouse.

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