Dáil Éireann debate -
Thursday, 11 Feb 1993

Vol. 425 No. 8

Written Answers. - Tax Allowance.

Liz McManus

Question:

65 Ms McManus asked the Minister for Finance if he will resolve the anomaly which relates to single parents, separated parents, widows and widowers in relation to single tax allowance as a matter of equality for these individuals.

Minister for Finance (Mr. B. Ahern)

I do not accept that there is any anomaly in the tax treatment of single, separated and widowed parents. The differential in the tax treatment of individuals on the basis of their marital status arises in large measure out of the Supreme Court Ruling in the Murphy case.

Single persons and separated persons being taxed independently receive a single person's allowance of £2,100. Where these are parents living alone with dependent children, they are entitled to a one-parent family allowance of £2,100 bringing their total basic allowances to the level of the married couple's allowance of £4,200.

Widowed persons receive a widowed personal allowance of £2,600 and where these are parents living alone with dependent children they are also entitled to a one parent family allowance of £1,600 again bringing their allowance up to the level of the married couples' allowance. In further recognition of the special position of bereaved parents, the Government introduced a special tax allowance for widowed parents with dependent children in 1991. The allowance is £1,500 for the first tax year following bereavement, £1,000 for the second and £500 for the third.

As far as mortgage interest relief is concerned, single persons and seperated persons being taxed independently receive a single person's mortgage interest relief up to a ceiling of £1,600. Widowed persons are entitled to mortgage interest relief up to a ceiling of £2,320.