Part 4 of Schedule 3 to the Principal Act (as amended by section 36 of the Act of 2007) is amended -

(a) in Rule 1(2) (a) by inserting ", 18A" after "11",

(b) in Rule 1(2) (b) by substituting the following for clause (v):

"(v) in the case of a person in receipt of a supplement under section 198 towards the amount of mortgage interest or rent payable by the person in respect of his or her residence -

(I) an amount equal to the sum of the first €75 of any additional income (within the meaning of Rule 2) and 25 per cent of so much of that additional income as exceeds €75, when that additional income has been reduced by the aggregate of -

(A) any allowable contribution referred to in Regulations 41 and 42 of the Income Tax (Employments) (Consolidated) Regulations 2001 ( S.I. No. 559 of 2001),

(B) any amount deducted from reckonable earnings under section 13 and regulations made under section 14, and

(C) any amount deducted from reckonable earnings under section 5 of the Health Contributions Act 1979, and

(II) the amount by which carer’s allowance as set out in column (2) at reference 8(a) or 8(b), as appropriate, of Part 1 of Schedule 4 exceeds -