asked the Minister for Finance if in view of increasing costs of advanced education he will consider increasing the income tax allowances in respect of children receiving secondary, vocational and university education.
Ceisteanna—Questions. Oral Answers. - Income Tax.
14.
I cannot indicate in advance what proposals the forthcoming Budget Statement may or may not contain.
15.
(South Tipperary) asked the Minister for Finance how income tax has varied over the past decade under the following headings where applicable: (1) standard rate, (2) annual income relief, (3) child allowance, (4) life assurance allowance, (5) retirement annuity relief, (6) dependent relative allowance, (7) housekeeper allowance, (8) daughter's service allowance, (9) age allowance, (10) wife's earned income allowance, and (11) wife's personal allowance.
As the reply is in the form of a tabular statement, I propose, with your permission, a Cheann Comhairle, to have it circulated with the Official Report.
Following is the statement:—
RATES of tax, allowances, etc., in force for the years 1956-57 to 1965-66
|
Year |
1956-57 |
1957-58 |
1958-59 |
1959-60 |
1960-61 |
1961-62 |
1962-63 |
1963-64 |
1964-65 |
1965-66 |
|
(1) Standard rate of tax in the £ |
7s. 6d. |
7s. 0d. |
6s. 4d. |
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|
(2) Earned income allowance |
¼th of first £800 and ¼th of balance subject to maximum allowance of £400. |
¼th subject to maximum allowance of £450 |
¼th subject to maximum allowance of £500 |
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|
(3) Child allowance |
£100 |
£120 |
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|
(4) Life assurance relief |
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|
(a) Policies made on or before the 22nd June, 1916Income not exceeding £1,000 |
Tax, calculated at ½ of standard rate or effective rate of tax on taxable income, if lower, on amount of premium or other sum payable. |
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|
,, ,, ,, £2,000 |
Tax, calculated at ¾ths of standard rate, on amount of premium or other sum payable. |
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|
,, exceeding £2,000 |
Tax, calculated at standard rate, on amount of premium or other sum payable. |
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|
(b) Policies made after the 22nd June, 1916, except those at (c). |
Tax, calculated at ½ of standard rate or effective rate of tax on taxable income, if lower, on amount of premium or other sum payable. |
Deduction from assessable income of ½ of premium or other sum payable. |
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|
(c) Policies made after the 21st May, 1953, with Irish concerns. |
Tax, calculated at ?rds of standard rate or effective rate of tax, if lower, on amount of premium or other sum payable. |
Deduction from assessable income of ?rds of premium or other sum payable. |
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|
(5) Retirement annuity relief |
NIL |
Deduction of £500 or 10 per cent, of net relevant earnings (as defined), whichever is the less. Both these limits are subject to modification—see Section 41 of the Finance Act, 1958. |
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|
(6) Dependent relative allowance |
£60 |
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|
(7) Housekeeper allowance |
£100 |
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|
(8) Dependent relative allowance—services of son or daughter. |
£60 |
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|
(9) Age allowance |
¼th of total income, subject to income limit of £600 |
¼th of unearned income irrespective of amount of total income (a) |
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|
(10) Wife's earned income allowance |
9/10ths, subject to maximum allowance of £45 |
¾ths, subject to maximum allowance of £45 |
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|
(11) Married allowance |
£310 |
£394 |
(a) The maximum deduction allowable is £150 and there is the further condition that the aggregate amount of the deductions for age allo wance and earned income allowance may not exceed £500.