Finance (No. 2) Act 2011

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Amendment of section 766B (limitation of tax credits to be paid under section 766 or 766A) of Taxes Consolidation Act 1997 .

1.— (1) Section 766B of the Taxes Consolidation Act 1997 is amended—

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

“(1) In this section—

‘payroll liabilities’ means—

(a) the amount of income tax which the company is required, by or under Chapter 4 of Part 42, to remit to the Collector-General for the relevant payroll period in respect of emoluments, as defined in section 983, paid to, or on account of, all employees and directors,

(b) the amount of Pay Related Social Insurance Contributions in respect of the reckonable earnings and reckonable emoluments of all directors and employees which the company is required to remit to the Collector-General for the relevant payroll period by or under the Social Welfare Acts, and

(c) any other amount of levies or charges the company is required, by or under Parts 18A, 18B or 18D, to remit to the Collector-General for the relevant payroll period;

‘relevant payroll period’ means the period—

(a) beginning at the time the period immediately preceding, and equal in length to, the accounting period in which the expenditure was incurred begins, and

(b) ending at the time that accounting period ends.”,

and

(b) by substituting the following for subsection (3)(b):

“(b) the aggregate of the amounts payable by the company in respect of payroll liabilities for the relevant payroll period in which the expenditure was incurred as reduced by the lesser of—

(i) the amount by which the aggregate of any amounts payable to the company in respect of claims made under section 766(4B) or 766A(4B), as the case may be, in respect of expenditure incurred in a previous accounting period, exceeds the payroll liabilities in respect of the period—

(I) beginning at the time that the accounting period in respect of which the first such claim was made begins, and

(II) ending at the time the accounting period immediately preceding the accounting period in which the expenditure was incurred ends,

and

(ii) the amount of the payroll liabilities for the period—

(I) beginning at the time at which the relevant payroll period begins, and

(II) ending at the time the accounting period immediately preceding the accounting period in which the expenditure was incurred ends.”.

(2) This section applies to accounting periods commencing on or after the passing of this Act.