10% cut in capped income tax reductions and credits

Article 105 of the 2011 Finance Act reduces by 10% the benefit of most income tax reductions and credits subject to the overall cap: their rates and ceilings are multiplied by 0.9 and rounded down. Excluded are the relief for employing a home worker, childcare costs and the reduction for social housing investment in overseas territories. For example, the 'Scellier' reduction falls in 2011 to 22% for low-energy homes and 13% for others. The cut applies to expenses paid from 1 January 2011, except property investment commitments made before 31 December 2010 (a reservation registered with a notary or the tax office before that date is enough if the deed is signed before 31 March 2011). The resulting rates were written into the code by decree. A second 15% cut followed in 2012.