Artists' exemption: The Minister for Finance yesterday announced a capping of the artists' tax exemption at a level of €250,000 in any one tax year.

The move will affect a small percentage of top earners - mainly a handful of high-profile musicians and writers - who have gained significantly from the exemption since 1969.

Those presumed to have benefited from the exemption up to now include rock acts (exempt on income from songwriting, but not recording or touring) such as U2, Enya, the Corrs and Westlife.

U2 are on tour in the US and could not be contacted for comment last night. Members of the Corrs are also out of the country.

Literary agent Marianne Gunne O'Connor, who represents, among others, high-earning, best-selling author Cecelia Ahern, said she was not in favour of capping the exemption.

"It is an inspiration to see that level of success, and it only happens to three or four people every decade," she said.

While she could see that the Minister was trying to be fair, she said that capping it was "like getting 10 out of 10 at school and then being penalised for it".

The Arts Council last night welcomed the retention of the artists' tax exemption, but expressed disappointment with the cap.

Council director Mary Cloake said it suggests an incomplete understanding of the inconsistent nature of artists' earnings, with even the most commercially successful of artists having very lean years when earnings are close to zero.

"€250,000 earned in a very successful year may be the only income an artist has for five, eight or 10 years," she said.

Anthony Summers, a highly successful non-fiction author, said he understood a ceiling for sky-high incomes for some music groups. "But, especially for an author who may get a sizeable advance one year for work spread over a number of years, there may be a problem. The devil, or perhaps the reasonable angel, will be in the details."

Marita Conlon McKenna, author and chairwoman of PEN international, said the Minister had listened to the case made for the retention and, while some people may be disappointed that it was capped, most will feel it is not unreasonable.

Most writers and artists would be relieved and happy, as not a huge number of people would be affected. "There was probably never so many artists and writers glued to a Finance Minister on television before!" she commented.