Richard Bruton
Question:195 Mr. R. Bruton asked the Minister for Finance if he will modify DIRT tax in the Finance Bill at least in so far as it affects modest deposit holders. [25946/99]
Written Answers - Tax Code.
The rate for DIRT will be reduced to 22% in line with the standard rate of income tax effective from 6 April next. A reduced rate of DIRT of 20% applies in respect of special savings accounts and special investment accounts subject to a maximum investment of £75,000 in either case. The tax deducted, whether at 20% or 22%, is treated as satisfying the individual's full liability to income tax and capital gains tax where relevant.
Disabled persons or individuals over 65 years and their spouses can claim a refund of DIRT if their total income including interest income is below their income tax exemption threshold. For the tax year commencing on 6 April 2000 the exemption threshold for over 65s will be £7,500 for single people and £15,000 for couples.
I have no plans at present to introduce proposals in the Finance Bill for additional modifications of the main features of the DIRT system.