Dáil Éireann debate -
Tuesday, 14 May 1991

Vol. 408 No. 4

Written Answers. - Income Tax Allowances.

Michael Noonan

Question:

61 Mr. Noonan (Limerick East) asked the Minister for Finance if he will outline the level, in current money terms, which would be necessary to maintain the 1970 value, or value in the year of introduction of the following income tax allowances: (1) single person's allowance, (2) married person's allowance, (3) widow(er) allowance, (4) PRSI allowance, (5) PAYE allowance, (6) age allowance, (7) blind persons' allowance, (8) single parent family allowance, (9) child allowance, (10) incapacitated child allowance, (11) housekeeper allowance for incapacitated persons and (12) dependent relatives allowance.

Minister for Finance (Mr. A. Reynolds)

The information requested by the Deputy is set out in the following table:

Allowance	Value of allowance in current terms
	£
Single person	1,992
Married person	3,273
Widowed person	2,115
PRSI	473
PAYE	452
Age
(1) single	127
(2) married	254
Blind persons
(1) single or married (one spouse blind)	711
(2) married (both spouses blind)	1,422
Single parent	645
Children*
(1) under 11 years of age	1,042
(2) over 11 years of age	1,158
Incapacitated children*
(1) under 11 years of age	1,042
(2) over 11 years of age	1,158
Housekeeper (taking care of incapacitated taxpayer)	772
Dependent relative	463

Notes—General

The values set out in the table are obtained by increasing the amount of the allowances in question from their level in the income tax year 1970-71 (or later, depending on the date of introduction) by reference to the increase in the consumer price index over the period between midMay 1970 (or later, depending on the date of introduction) and mid-February 1991 (the latest figure available).

* The general child tax allowance, which then stood at £100, was abolished with effect from 6 April 1986. The revenue from its abolition was used, along with other moneys, to fund the introduction of child benefit at a rate sufficient to compensate standard rate taxpayers, then paying tax at 35 per cent, for its loss. In 1989 a child addition of £200 per child was introduced in conjunction with the income tax exemption limits; in 1990 this was increased to £300 per child, and in 1991 to £500 for third and subsequent children.