Paschal Donohoe (Dublin Central, Fine Gael)
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Section 531AN of the Taxes Consolidation Act (TCA) 1997 provides for a reduced Universal Social Charge (USC) rate of 2% on all income above €12,012, where a person’s total income in a year does not exceed €60,000 and where the person is aged 70 or over or holds a full medical card. A rate of 0.5% on the first €12,012 of income applies to all taxpayers.

I am advised by Revenue that in 2018, the person concerned was over 70 with total income of less than €60,000. Therefore, the USC rate that applied to the first €12,012 of income was 0.5%, and the 2% rate applied to the remainder. The one quarter percent reduction in the higher USC rate (from 5% to 4.75%) for the year 2018 was not relevant to the person because it was not applicable to any portion of his income.

Revenue has also confirmed that it has carried out a full review of the person’s USC payments for all years from 2015 to 2019 (to date) and is satisfied that the correct (reduced) USC rates were applied.