USC and DIRT

[HeinekenTick]

I understand that, as a general rule, the USC does not apply to deposit interest that has already been subjected to DIRT.

However,

if the deposit interest is exempt from DIRT due to, for example, the low income threshold (€18,000 in 2011 for single person), does this mean that the deposit interest is subject to the USC instead? For example, if deposit interest is €1,000 but total income is €16,000, DIRT will not apply but the USC applies instead?

Or

does the general rule mean that income that is potentially liable to DIRT is never liable to the USC? Using the same example as above, neither DIRT nor the USC would apply to the €1,000 deposit interest.

Clarification of this point would be very welcome, thanks!

 

[M K Brazil]

Think this was covered by Revenue's FAQs back in the day and the short answer is that the USC does not apply.

 

[Leaky1]

I presume the €18,000 exemption you are referring to is the one for over 65's.

"USC FAQ's" on Revenue website - see point 1.17

http://www.revenue.ie/en/tax/usc/universal-social-charge-faqs.pdf