asked the Minister for Finance if tax remission will be allowed on health expenses in excess of £37.50 in the context of a nine-month budget.
Ceisteanna—Questions. Oral Answers. - Health Expenses Tax Remission.
101.
The Exchequer and Local Financial Years Act, 1974, recently enacted, provides for a change of Exchequer and local financial years to a calendar year basis as from 1st January, 1975, with a transitional nine-months' financial period from 1st April, 1974, to 31st December, 1974. The Act does not, however, change the income tax year so that the next income tax year will be the 12-months' period from 6th April, 1974, to 5th April, 1975, and not the nine-months' period ending on 31st December, 1974. In the circumstances, the adjustment of tax allowances and reliefs to a nine-months' basis will not arise.
Will there be any period in which a full 12 months exemption from tax under this head will not occur, where there will be a nine months transitional period? Surely there has to be some transitional period?
Until such time as the tax year is changed the adjustment which the Deputy has in mind will not arise. For reasons which I explained during the course of the debate on the Exchequer and Local Financial Years Bill, it is not proposed to make a change in the tax year as distinct from the financial year for the time being.
Therefore, the forthcoming budget on 3rd April will be a 12 months budget and the other one will come in before it has expired?
The financial year will be for nine months and tax will continue to be levied on a 12 months basis.