Gay Mitchell
Question:168 Mr. G. Mitchell asked the Minister for Finance if a person (details supplied) in Dublin 12 can reclaim VAT and income tax on essential medical supplies. [25660/01]
Vol. 542 No. 6
168 Mr. G. Mitchell asked the Minister for Finance if a person (details supplied) in Dublin 12 can reclaim VAT and income tax on essential medical supplies. [25660/01]
Section 469 of the Taxes Consolidation Act, 1997, provides for income tax relief at the marginal rate of tax for expenditure incurred on health care. This includes expenditure incurred, net of any amounts received or receivable from any public or local authority, for example, health board, or any insurance policy, or any other source, on the supply, maintenance, repair of any medical, surgical, dental or nursing appliance used on the advice of a medical practitioner.
A remote control bed purchased on the advice of a medical practitioner would fall into this category. Relief may be claimed by an individual in respect of such expenditure incurred in respect of the individual him/herself, or incurred on behalf of a dependant. A dependant includes a spouse, child or other relative.
In the case of a relative, for the years up to and including the tax year 2000-01, the claimant is only entitled to claim relief in respect of health expenses incurred in respect of a relative for whom he or she is entitled to the dependent relative tax allowance under the provisions of section 466 for the relevant year(s). For 2001 and following years, this condition no longer applies. Once the relative is a dependant of the claimant, that is, a relative of the individual, or of the individual's spouse, who is incapacitated by old age or infirmity from maintaining himself or herself; the widowed father or widowed mother of the individual or of the individual's spouse, whether incapacitated or not, or a son or daughter of the individual who resides with the individual and on whose services the individual, by reason of old age or infirmity, is compelled to depend, he or she can claim relief in respect of health expenses incurred on behalf of the dependent relative.
It is not clear from the Deputy's question when or by whom the expenditure was incurred. If the expenditure on the purchase of the remote control bed was incurred by the elderly couple themselves and they are paying tax, then income tax relief under section 469 Taxes Consolidation Act, 1997, may be claimed by the couple.
If, on the other hand, the expenditure was incurred by the couple's daughter, and she pays tax, she may be entitled to income tax relief under section 469 of Taxes Consolidation Act. If the expenditure was incurred prior to 6 April 2001, she would have to have been entitled to the dependent relative allowance in respect of her mother in order to qualify for income tax relief on the expenditure. A claim form has been forwarded to the individual mention by Deputy.