The total tax benefits of the covenant you mention from a taxpayer on 40% income tax and USC rate of 4.5% to a pensioner on basic state pension earnings only, would be 44.5%. This would result in a 500 euro tax refund to the pensioner and tax and USC reduction of 612.50 euro for the covenantor.
The total tax benefits of the covenant you mention from a taxpayer on 40% income tax and USC rate of 4.5% to a pensioner on basic state pension earnings only, would be 44.5%. This would result in a 500 euro tax refund to the pensioner and tax and USC reduction of 612.50 euro for the covenantor.
Deed of Covenants are generally used for children and elderly parents to assist with living expenses and medical bills. A deed of covenant is legally enforceable whereby the individual (the covenantor) , agrees to give a portion of his or her income to another person, (t
I haven't seen it done in 30 years Arthur. I'm not that sure that many OAP recipients need the additional money while in most cases their working-age children certainly do.
3 of us did this originally for my father for many many years up to 2019, he only had state pension so we did whatever figure that brought us up to max income without tax, I know it was €400 a year he got back in later years when I had to drop out as no taxable income. Nice little bit, paid towards a fill of oil! Both siblings also gave their extra refund as they were on higher tax rate back to his pot to pay bills too. Well worth if for a family if you fit the criteria.