Written Answers. - Tax Allowances.

Máirín Quill

Question:

73 Miss Quill asked the Minister for Finance the estimated cost to the Exchequer in each of the years 1995 and 1996 of personal allowances, PAYE allowances, PRSI allowances, mortgage interest allowances, VHI allowances, rental allowances, marginal tax reliefs, age allowances and disability and caring allowances; and if he will make a statement on the changes which have occurred. [16770/96]

Michael McDowell

Question:

77 Mr. M. McDowell asked the Minister for Finance the estimated cost to the Exchequer in each of the years 1995 and 1996 of personal allowances, PAYE allowances, PRSI allowances, mortgage interest allowances, VHI allowances, rental allowances, marginal tax reliefs, age allowances and disability and caring allowances; and if he will make a statement on the changes which have occurred. [16769/96]

I propose to take Questions Nos. 73 and 77 together. The relevant information available is by reference to the income tax years 1995/96 and 1996/97. The information requested, in so far as it is available, is set out in the following table. The projected increased costs for the personal allowances and the exemption limits/marginal relief are attributable to the increases in these allowances and exemption limits provided for in the Finance Act, 1996. The year-on-year reduction in the costs for loan interest and medical insurance is attributed mainly to the phased impact of standard rating those reliefs which was introduced in the Finance Act, 1994, offset to some extent in the case of loan interest by an increase in loan amounts and the ongoing increase in numbers. The cost of the relief shown for 1995/96 in respect of rent paid in private tenancies reflects the information currently available for that year on take-up of the relief provided for under section 5 of the Finance Act, 1995. Corresponding information on take-up is not yet available for 1996/97 and the figure of cost included for this year is the full year cost of the relief estimated for the 1995 budget. That estimate may require to be revised in the light of further information on take-up becoming available.

Increases in the costs of other allowances are based largely on increased take-up.

Estimated costs to the Exchequer of certain income tax allowances and reliefs

Allowance or relief

1995-96

1996-97

£m

£m

Personal(¹)

1,520.7

1,634.5

PAYE

235.9

234.1

PRSI(²)

29.5

Loan interest

136.5

130.8

Medical insurance

58.2

48.1

Rent paid in private tenancies

7.7

20.3

Exemption limits/marginal relief(³)

104.7

112.5

Age

5.6

6.5

Dependent relative

1.0

1.0

Incapacitated child

2.1

2.3

Incapacitated Taxpayer

0.2

0.2

Blind

0.2

0.2

(¹) The personal allowances included in the estimates of cost are the married, single and widowed allowances together with the associated one-parent family allowance.
(²) The PRSI allowance was not renewed for the income tax year 1996/97.
(³) Includes the cost of exemption limits as well as the associated marginal relief for taxpayers whose incomes are not greatly in excess of the appropriate exemption limits.