Panel G: Exempt income — Page 19, Lines 412-417

THIS part of Form 11 is only relevant where you have income which has an exemption from income tax. Even though this income is exempt, you still need to enter the profits, gains, distributions or losses where requested.

ARTIST’S EXEMPTION — LINE 412

If you are an artist who has produced a work of artistic/cultural merit and the The Revenue Commissioners have approved this, your profits from this work will be exempt from income tax. The exemption is restricted to the first €50,000. Income in excess of this amount is taxable and should be entered in Panel B of the Form 11. The exemption only applies to income tax. The exempt portion of your income is liable to both PRSI and USC.

PROFIT OR GAINS FROM WOODLANDS — LINE 413

IF you own woodlands in Ireland which are used commercially, the profits or gains are exempt from income tax and liable to both PRSI and USC.

RENT-A-ROOM RELIEF SCHEME — LINE 414) TOP TIP

This can be quite a popular relief as a relatively high number of taxpayers have chosen to let one or more of the rooms in their homes to tenants to help fund their mortgage costs, etc.

If you let a room (or rooms) in your home and the total of the gross rents and any sums for food and laundry services in respect of the letting (ignoring all expenses incurred) does not exceed the annual limit for 2016 (€12,000), the profits are treated as nil for income tax, PRSI and USC purposes.

The relief is not due where the relevant sums are received from your child.

The relief does not affect any entitlement you may have to mortgage interest relief or to the capital gains tax exemption on the disposal of your home.

According to a guidance note issued by the Revenue Commissioners, this relief applies to long term lettings so as the majority of Airbnb lettings are short term, you will not be able to use this exemption if you received income for such short term lettings.

CHILDCARE SERVICES — LINE 415 TOP TIP

If you are providing Childcare Services in your home, your gross annual income (before expenses) from the provision of these services may be exempt from tax if it does not exceed €15,000 in 2016.

This income is exempt from income tax and USC but a separate charge to PRSI arises.

Where your gross income exceeds €15,000 the net income after expenses is taxable and should be reported in Panel B.

No more than three children may be cared for at any one time and you must have notified the Health Service Executive (HSE) that you provided childcare services in 2016.

Claiming this exemption does not affect your entitlement to mortgage interest relief in respect of, nor capital gains tax relief on gains from the disposal of, your home.