Olivia Mitchell
Question:162 Ms O. Mitchell asked the Minister for Finance when he will sign the order to introduce the section 63 tax allowance provision for the construction of crèches. [10050/00]
Written Answers. - Tax Allowances.
In budget 2000, as part of a package of measures to address the provision of child care facilities, I announced that for expenditure incurred on and from 1 December 1999 accelerated capital allowances at a rate of 100% would be allowable. This accelerated allowance is available to both owners of the child care facilities and also to investors who wish to invest by way of leasing arrangements. Section 63 of the Finance Act, 2000 amends section 843A of the Taxes Consolidation Act, 1997 so as to provide for these capital allowances.
However, as I indicated at budget time, this measure will come into operation following clearance by the EU Commission. In this regard, the matter was discussed in January with the EU Commission and on 17 February last, my Department wrote to the state aids – regional aid unit setting out the background to the child care provisions. The Department stated that as the measure is intended to be of a general nature, it is felt that formal notification to the competition directorate under state aid rules should not be necessary. My Department is awaiting a reply from Brussels.
Consequently, at this stage I am not in a position to tell the Deputy when I will be able to make the necessary order.
Liam Aylward
Question:163 Mr. Aylward asked the Minister for Finance the reason the same tax free allowances for the tax year 2000-01 for a person (details supplied) in County Kilkenny did not apply for the tax year 1999-2000. [10053/00]
I am informed by the Revenue Commissioners that the taxpayer's 2000-2001 tax free allowances are higher than his 1999-2000 tax free allowances for the following reasons: the single personal allowance has been increased from £4,200 to £4,700 as announced in the budget; the taxpayer is in receipt of medical insurance relief of £310 for the 2000-2001 tax year – he was not eligible for medical insurance relief in 1999-2000; and the taxpayer's tax free allowances for 1999-2000 were reduced in order to collect the income tax due on injury benefit payments he received during the year. The taxpayer is no longer in receipt of taxable social welfare income.
Liam Aylward
Question:164 Mr. Aylward asked the Minister for Finance if he will refer to the tax free allowance which issued to a person (details supplied) in County Kilkenny for the tax year 2000-2001 and the reason the same allowance did not apply to this person's allowances for the year 1999-2000. [10054/00]
I am informed by the Revenue Commissioners that the taxpayer's 2000-2001 tax-free allowances are higher than they were in 1999-2000 because, as announced in the budget, the tax exemption threshold for married taxpayers aged 65 and over has been increased from £13,000 to £15,000.
The increase in the taxpayer's tax free allowances will not affect his income tax situation. He was not liable to income tax in 1999-2000 and will not be liable to income tax in 2000-2001.