(1) Section 1086 of the Taxes Consolidation Act 1997 is amended -

(a) in subsection (4) (c) by substituting "€30,000" for "€12,700", and

(b) by inserting the following subsection after subsection (4):

"(4A)

(a) In this subsection -

'the consumer price index number' means the All Items Consumer Price Index Number compiled by the Central Statistics Office;

'the consumer price index number relevant to a year' means the consumer price index number at the mid-December before the commencement of that year expressed on the basis that the consumer price index at mid-December 2001 was 100;

'the Minister' means the Minister for Finance.

(b) The Minister shall, in the year 2010 and in every fifth year thereafter, by order provide, in accordance with paragraph (c), an amount in lieu of the amount referred to in subsection (4) (c), or where such an order has been made previously, in lieu of the amount specified in the last order so made.

(c) For the purposes of paragraph (b) the amount referred to in subsection (4) (c) or in the last previous order made under the said paragraph (b), as the case may be, shall be adjusted by -