Dáil Éireann debate -
Wednesday, 28 Jan 1998

Vol. 486 No. 1

Written Answers. - Tax Allowances.

Noel Ahern

Question:

513 Mr. N. Ahern asked the Minister for Finance if he will introduce tax allowance for the non working spouse of unmarried partners who currently feel discriminated against; the number of nights a week a lone parent should have custody of children to claim lone parent's tax allowance; if both separated parents can claim lone parent's tax allowance if custody is shared equally; and the reason a qualifying lone parent with custody of children should be denied the relevant lone parent tax allowance for having a new partner in view of the fact that the system does not recognise and refuses tax relief for a partner in this regard. [1753/98]

Minister for Finance (Mr. McCreevy):

There are no special income tax allowances for unmarried couples living together. In this context, tax law follows the general law relating to marriage.

I am aware of the difficulties which can arise for cohabiting couples in certain circumstances. An inter-departmental working group has been set up under the Department of Social, Community and Family Affairs to examine the treatment of married, co-habiting and one-parent households under the tax and social welfare codes. This group is due to report by mid-year 1998.

Section 462 of the Taxes Consolidation Act, 1997 provides that a lone parent can claim tax relief for a year of assessment where a qualifying child is resident with him or her for the whole or part of the year. Where all other conditions for qualifying for lone parent allowance are met, both separated parents can claim the allowance where custody of a qualifying child is shared and the child is resident with each parent for part of the year of assessment. Where a separated parent has a new partner and the parent and the partner are living together as man and wife the law specifically precludes the parent from qualifying for lone parent allowance.