Income which has a statutory exemption.
Notwithstanding that this income is exempt, there is a legal requirement on the individual to furnish a return of this income to Revenue.
- Artists Exemption
- Profit or gains from Stallion Fees
- Profit or gains from Woodlands
- Profit or gains from Greyhound Stud Fees
- Patent Income
- Rent-a-Room Relief Scheme
Income is income from qualifying work(s) determined by the Revenue Commissioners to have artistic/cultural merit and for which the Revenue Commissioners have granted exemption from Income Tax under Section 195 TCA 1997.
Profit or gains from Stallion Fees
Certain profits or gains arising to an owner or part owner of a stallion from the sale of services of mares within the State by the stallion, or from the sale of rights to such services (that is stud fees or receipts from the sale of nominations) were exempt from income tax under Section 231 TCA 1997. This exemption ceased in relation to profits or gains arising after 31 July 2008.
Profit or gains from Woodlands
Profits or gains from the commercial occupation of woodlands in the State are exempt from income tax under Section 232 TCA 1997.
Profit or gains from Greyhound Stud Fees
Profits or gains arising to an owner or part owner of a stud greyhound from the sale of services of greyhound bitches within the State by the stud greyhound or from the sale of rights to such services were exempt from income tax under Section 233 TCA 1997. This exemption ceased in relation to profits or gains arising after 31 July 2008.
Certain income derived from patent royalties is exempt from income tax under Section 234 TCA 1997. There are numerous conditions applying including:
- The original inventor must be the recipient of the royalty,
- The royalty must be in respect of a manufacturing activity (other than IFSC and certain Shannon Free Zone activities) carried on in the State or elsewhere, or a non-manufacturing activity where it is paid by a person unconnected with the recipient.
Rent-a-Room Relief Scheme
If you have let a room (or rooms) of your sole or main residence as residential accommodation and the gross rent received, including sums for food, laundry or similar goods and services, does not exceed €10,000 (for 2010 and 2011), you may be entitled to "Rent-a-Room Relief" under section 216A TCA 1997. Where more than one individual is entitled to the rent, the limit is divided between the individuals concerned.
Where more than one individual is entitled to the rent, the limit is divided between the individuals concerned.
When calculating the relevant sums no account is taken of any expenses incurred in respect of the letting or the provision of additional services. Where the relief applies the profits or losses are treated as nil for income tax, PRSI and Universal Social Charge (USC) purposes. (For 2010 and prior years, the reference to USC should be read as a reference to the health and income levies). You may, if you wish, elect to have any income or losses from this source assessed under normal rules.
Room rentals coming within the scope of this scheme will not affect any entitlement you may have to mortgage interest relief or capital gains tax relief on the disposal of a principal private residence.
Please refer to IT 70 A Revenue Guide to Rental Income for further information on rent-a-room relief.