asked the Minister for Finance (1) the cost to the Exchequer of the following tax allowances or reliefs for each of the years 1979, 1980, 1981, 1982 and the estimated costs in 1983 (where applicable) and (2) the number of claims made under each heading in respect of (a) deeds of covenant payable to individuals; (b) deeds of covenant payable to educational institutions; (c) deeds of covenant payable to other individuals or bodies; (d) medical insurance relief; (e) unreimbursed medical expenses; (f) residence-related expenditure; (g) rent tax relief for persons over 65; (h) loan interest paid in respect of mortgages; (i) loan interest on other personal loans; (j) life assurance; (k) blind persons allowance; (l) dependent relative allowance; (m) child allowance; (n) one-parent family allowance; (o) employee (PAYE) allowance; (p) age allowance; and (q) PRSI allowance.
Written Answers. - Tax Reliefs.
The following table sets out the information requested in so far as it is available:
|
Allowance or relief |
1979-80 |
1980-81 |
1981-82 |
|||
|
Number of |
Number of |
Number of |
||||
|
Cost |
persons |
Cost |
persons |
Cost |
persons |
|
|
£ million |
affected |
£ million |
affected |
£ million |
affected |
|
|
(provisional) |
||||||
|
(a), (b), (c) Deeds of covenant(1) |
1.2 |
Not available |
1.5 |
Not available |
1.7 |
Not available |
|
Not |
||||||
|
(d) Medical insurance |
5.0 |
165,000 |
6.0 |
180,000 |
6.5 |
available |
|
(e) Health expenses |
0.3(1979) |
1,681 |
0.5(1980) |
2,061 |
0.45(1981) |
2,067 |
|
(f) Residence related expenditure(2) |
0.1 |
661 |
0.9 |
4,768 |
1.5 |
8,579 |
|
(g) Rent relief for |
||||||
|
persons aged 65 or |
Not applicable |
Not applicable |
Not applicable |
|||
|
over(3) |
||||||
|
(h), (i) Loan interest relief(4) |
30.0 |
200,000 |
36.0 |
210,000 |
52.5 |
225,000 |
|
(j) Life assurance |
8.0 |
380,000 |
10.0 |
400,000 |
10.5 |
Not available |
|
(k) Blind allowance |
0.02 |
430 |
0.05 |
450 |
0.065 |
Not available |
|
(l) Dependent relative(5) |
3.6 |
111,000 |
3.0 |
96,000 |
2.7 |
Not available |
|
(m) Child allowance(6) |
52.0 |
742,000 |
53.4 |
773,000 |
54.1 |
763,000 |
|
(n) One parent family allowance |
1.0 |
16,000 |
3.0 |
20,000 |
3.8 |
20,000 |
|
(o) Employee (PAYE) allowance |
39.0 |
764,000 |
117.0 |
818,000 |
180.0 |
823,000 |
|
(p) Age allowance |
2.0 |
55,000 |
0.75 |
20,000 |
0.8 |
20,000 |
|
(q) PRSI allowance |
Not applicable |
Not applicable |
Not applicable |
|
Allowance or relief |
1982-83 |
1983-84 |
||
|
Number of |
Number of |
|||
|
Cost |
persons |
Cost |
persons |
|
|
£ million |
affected |
£ million |
affected |
|
|
(provisional) |
(provisional) |
|||
|
(a), (b), (c) Deeds of covenant(1) |
Not available |
Not available |
||
|
(d) Medical insurance |
9.5 |
Not available |
11.5 |
Not available |
|
(e) Health expenses |
0.5(1982) |
2,223 |
Not available |
|
|
(f) Residence related expenditure(2) |
2.0 |
12,283 |
Not applicable |
|
|
(g) Rent relief for persons aged 65 or |
||||
|
over(3) |
Not applicable |
0.9 |
28,000 |
|
|
(h), (i) Loan interest relief(4) |
66.0 |
245,000 |
81.0 |
255,000 |
|
(j) Life assurance |
12.0 |
Not available |
13.5 |
Not available |
|
(k) Blind allowance |
0.085 |
Not available |
0.085 |
Not available |
|
(l) Dependent relative(5) |
2.8 |
Not available |
2.3 |
Not available |
|
(m) Child allowance(6) |
30.9 |
794,000 |
32.0 |
799,000 |
|
(n) One parent family allowance |
7.7 |
20,000 |
8.7 |
20,000 |
|
(o) employee (PAYE) allowance |
206.0 |
859,000 |
215.0 |
852,000 |
|
(p) Age allowance |
0.9 |
20,000 |
1.0 |
20,000 |
|
(q) PRSI allowance |
86.5 |
700,000 |
84.0 |
700,000 |
General Notes
(a) The estimates supplied in the table are in respect of the relevant income tax year except in the case of health expenses which are in respect of the period of 12 months beginning on 1 January in each year.
(b) With the exception of the figures for health expenses for 1981 and 1982 all estimates given for 1981-82, 1982-83 and 1983-84 are provisional and are subject to revision when later data for these years are available.
Notes on table
(1) Deeds of covenant. Statistics are not available which would enable a breakdown of the costs to be given in the manner requested. It is estimated, however, that of the total costs to the Exchequer the following amounts were incurred in respect of tax relief on covenanted payments for the teaching of the natural sciences and for research:
|
£ million |
||
|
1979-80 |
— |
0.8 |
|
1980-81 |
— |
1.0 |
|
1981-82 |
— |
1.1 |
(2) Residence related expenditure. This relief ceased to operate after 5 April, 1983.
(3) Rent relief for persons aged 65 or over. This relief is effective for the first time for 1983-84, and since little experience has yet been gained of the operation of the relief, there are no grounds for changing the estimates prepared in connection with the budget statement of 25 March 1982 which are given in the reply.
(4) Loan interest relief. Statistics are not available which would enable an accurate breakdown of the figures for loan interest relief between mortgage and other interest to be given. A very tentative estimate would suggest a breakdown along the following lines:
|
Mortgage interest £ million |
Other interest £ million |
|
|
1979-80 |
20 |
10 |
|
1980-81 |
24 |
12 |
|
1981-82 |
35 |
17.5 |
|
1982-83 |
45 |
21 |
|
1983-84 |
56 |
25 |
(5) Dependent relative. The figures under the heading "Number of persons affected" is the estimated number of relatives in respect of whom the relief was claimed.
(6) Child allowance. The figures under the heading "Number of persons affected" is the estimated number of children in respect of whom the relief was claimed. The drop in the cost of child allowance for the year 1982-83 was caused by the reduction in the normal child allowance from £195 for 1981-82 to £100 for 1982-83 and 1983-84.