Amount of tax relief
Tax relief is given at the standard rate of tax for any service
charges paid (including the purchase of "Bin Tags") in the
previous year. For example if an individual paid service charges of €£240 in 2005 they will be entitled to a tax credit of €48 in 2006
(i.e. €240 x 20% = €48).
The Finance Act 2006 introduced new limits on the amount of
relief that can be claimed. The limits set out below will apply to
the amount of relief that can be claimed in respect of the
following periods:
From the 1st of January 2007:
The total tax relief that can be claimed for both fixed
charge payments made (including lift charges and pay by
weight) and bin tags purchased in 2006 will be subject to an
overall limit of €400