It is important to take control of your retirement planning. This is even more significant when your retirement comes at an early age.
Finance Act 2002, by enacting Section 480A of the Taxes Consolidation Act, 1997 (TCA), introduced a tax relief for certain classes of sportspersons on their retirement.
This tax relief recognises the relatively short career and limited earning capacity most professional sportspersons experience in Ireland and is given by way of repayment of tax.
A professional sportsperson can claim a tax deduction of 40% against gross receipts for up to ten years.
A qualifying sportsperson must satisfy the Revenue Commissioners that he / she has ceased permanently to be engaged in that occupation or to carry on that profession.
From 1 January 2014, a sportsperson must be resident in the State, an EEA state or an EFTA state for the year of assessment in which he / she ceases permanently to be engaged in that occupation or to carry on that profession in order to avail of this Special Tax Relief. Prior to that date the requirement was that the sportsperson must be resident in the State.
A sportsperson claims the relief by including a claim in his / her return of income. However, where the sportsperson is not required to submit a return of income, he / she may submit a claim directly to the Revenue Commissioners. A claim for relief must be made within 4 years from the end of the year of assessment in which the sportsperson retires.
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Your retirement will change your life, make sure you plan for it. Contact Alan Farrelly to discuss this tax relief and your retirement planning.