Covenants that qualify for tax relief
A Deed of Covenant is a legally binding written agreement to pay an agreed amount to another person over an agreed period of time. You must not receive any benefit in return for paying this amount.
Covenants to certain individuals qualify for tax relief. You can claim tax relief on covenants to:
- One or more adults aged 65 or over. The relief you receive is restricted to 5% of your total income.
- Permanently incapacitated minors. A minor is a person under 18 years of age who is not married or in a civil partnership. You cannot claim tax relief on covenant payments you make to your own incapacitated child.
- Permanently incapacitated adults.
A Deed of Covenant must last for more than six years to qualify for tax relief. We recommend that you make a covenant that lasts for a minimum of seven years.
See link below for covenant template from revenue
https://www.revenue.ie/en/self-assessment-and-self-employment/documents/deed-of-covenant.pdf
Subject to qualifying conditions and ensuring all proper documentation is in place
Any queries give me a call on 091 763817 or email me at oliver@taxreturnhelp.ie