Tax Relief for Service Charges - IT27

how much tax relief

Introduction

Income tax relief is available for individuals who pay service charges to local authorities and other independent contractors. Relief is given for service charges paid in full and on time in the previous calendar year.

From 1 January 2012 tax relief will no longer be available for service charges paid.

Service Charges which qualify for relief

All service charges paid to:

  • Local authorities for the provision of domestic water supply, domestic refuse collection or disposal, or domestic sewage disposal
  • Group water schemes for domestic water supply
  • Independent contractors for domestic refuse collection or disposal.

Individuals who qualify for relief

  • An individual (or their spouse or civil partner, if taxed jointly) who is liable for and pays the service charge on a premises will qualify for relief or
  • An individual (e.g. a son or daughter living with an elderly parent) who pays the service charge and lives on a full time basis in that premises may qualify for the relief. In such a case the claim form (PDF, 257KB) should be submitted with the disclaimer

    section completed by the liable individual (e.g. the elderly parent).

Amount of tax relief

Tax relief is given at the standard rate of tax for any service charges paid (including the purchase of "Bin Tags") in the previous year. For example if an individual paid service charges of €240 in 2010 they will be entitled to a tax credit of €48 in 2011 (i.e. €240 x 20% = €48).

The limits set out below will apply to the amount of relief that can be claimed in respect of the following periods:

Tax year 2012 and subsequent years

From 1 January 2012 tax relief will no longer be available for service charges paid.

Tax years 2007 to 2011 (for amounts paid in 2006 to 2010)

  • The total tax relief that can be claimed for both fixed charge payments made (including lift charges and pay by weight) and bin tags purchased, from 2006 to 2010 are subject to an overall limit of €400

Services Charges paid in the years 2009 and 2010

Service charges paid in the years

Source: www.revenue.ie

Category: Taxes

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