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Finance Act 2018
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Amendment of section 126 of Principal Act (tax treatment of certain benefits payable under Social Welfare Acts)

13. Section 126 of the Principal Act is amended—

(a) by substituting the following for subsection (1):

“(1) In this section—

‘the Acts’ means the Social Welfare Acts;

‘the Act of 2005’ means the Social Welfare Consolidation Act 2005 .”,

(b) by inserting the following after subsection (6):

“(6A) A payment which is—

(a) described in column (1) of the Table to this section,

(b) paid on the basis specified in column (2) of that Table, and

(c) made by the Minister for Employment Affairs and Social Protection to an individual on or after 1 January 2019,

shall be exempt from income tax and shall not be reckoned in computing income for the purposes of the Income Tax Acts.

(6B) A payment which—

(a) is described in column (1) of the Table to this section,

(b) is paid on the basis specified in column (2) of that Table, and

(c) was made by the Minister for Employment Affairs and Social Protection to an individual before 1 January 2019,

shall be treated as if it was exempt from income tax in the year of assessment to which it relates and shall not be reckoned in computing income for the purposes of the Income Tax Acts.”,

(c) by deleting subsection (7), and

(d) by inserting the following Table to the section:

“TABLE

Description of payment

(1)

Basis on which payment is made

(2)

Basic supplementary welfare allowance

Section 189 of the Act of 2005

Back to education allowance

A payment made under a scheme administered by the Minister for Employment Affairs and Social Protection and known as ‘Back to education allowance’

Back to work enterprise allowance

A payment made under a scheme administered by the Minister for Employment Affairs and Social Protection and known as ‘Back to work enterprise allowance’

Back to school clothing and footwear allowance

A payment made under a scheme administered by the Minister for Employment Affairs and Social Protection and known as ‘Back to school clothing and footwear allowance’

Carer’s support grant

Section 225 of the Act of 2005

Constant attendance allowance

Section 78 of the Act of 2005

Death benefit - funeral expenses

Section 84 of the Act of 2005

Death benefit - orphans

Section 83 of the Act of 2005

Direct provision allowance

A payment made under a scheme administered by the Minister for Employment Affairs and Social Protection and known as ‘Direct provision allowance’

Disability allowance

Section 210 of the Act of 2005

Disablement gratuity

Section 75(8) of the Act of 2005

Domiciliary care allowance

Section 186F of the Act of 2005

Exceptional needs payment

Section 201 of the Act of 2005

Farm assist

Section 214 of the Act of 2005

Fuel allowance

A payment made under a scheme administered by the Minister for Employment Affairs and Social Protection and known as ‘Fuel allowance’

Guardian’s payment (contributory)

Section 130 of the Act of 2005

Guardian’s payment (non-contributory)

Section 168 of the Act of 2005

Household benefit package

A payment made under a scheme administered by the Minister for Employment Affairs and Social Protection and known as ‘Household benefit package’

Humanitarian assistance payment

A payment made under a scheme administered by the Minister for Employment Affairs and Social Protection and known as ‘Humanitarian assistance payment’

Jobseeker’s allowance

Section 141 of the Act of 2005

Jobseeker’s transitional payment

Section 148A of the Act of 2005

Medical care

Section 86 of the Act of 2005

Part-time job incentive scheme

A payment made under a scheme administered by the Minister for Employment Affairs and Social Protection and known as ‘Part-time job incentive scheme’

Rent allowance

Section 23 of the Housing (Private Rented Dwellings) Act 1982

Supplementary welfare allowance

Section 198 of the Act of 2005

Telephone support allowance

A payment made under a scheme administered by the Minister for Employment Affairs and Social Protection and known as ‘Telephone support allowance’

Training support grant

A payment made under a scheme administered by the Minister for Employment Affairs and Social Protection and known as ‘Training support grant’

Urgent needs payment

Section 202 of the Act of 2005

Widowed or surviving civil partner grant

Section 137 of the Act of 2005

Working family payment

Section 228 of the Act of 2005

Youth employment support scheme

A payment made under a scheme administered by the Minister for Employment Affairs and Social Protection and known as ‘Youth employment support scheme’

”.