Skip to main content
Normal View

Dáil Éireann debate -
Thursday, 5 Nov 1992

Vol. 424 No. 10

Ceisteanna — Questions. Written Answers. - Widower's Tax Treatment.

Bernard Allen

Question:

15 Mr. Allen asked the Minister for Finance if he will introduce the necessary steps to eliminate the anomaly whereby widowers are penalised after the death of their wives, and the situation which exists where there is a financial loss to the family after the death of the wife.

I do not accept that there is an anomaly in the tax treatment of widowers. I assume that the Deputy's concern stems from the tax treatment of widowers and widows in the years subsequent to the year of bereavement. The position here is that the doubled rate bands available to married couples were introduced in the light of the Supreme Court ruling in the Murphy case and, in accordance with that decision, are given in respect of two adults.

However, the special position of widowed persons is recognised by the provision of a widowed personal allowance, currently standing at £2,600 compared to the single person's allowance of £2,100. There is also a special ceiling on mortgage interest relief currently standing at £2,320 compared to £1,600 for a single person. These provisions allow greater tax relief for widowed persons than is available to a single person. Widowed persons with children, are also entitled to a widowed parent allowance, which brings the total basic allowances of a widowed parent up to the same level as those of a married couple. In recognition of the special difficulties faced by widowed parents in the years following bereavement, a special tax allowance was introduced in 1991 for widowed parents with dependent children, to operate for the first three years following bereavement. The allowance is £1,500 for the first tax year following bereavement, £1,000 for the second and £500 for the third.

Top
Share