I presume the Deputy is referring to the tax relief for the employment of a carer. I am advised by the Revenue Commissioners that the latest relevant information available on the tax relief provided under section 467 of the Taxes Consolidation Act, 1997, for an employed person taking care of an incapacitated taxpayer is that the relief was allowed to some 400 individuals in respect of the income tax year 1997/98, at an estimated cost to the Exchequer of the order of £0.3 million. The allowance for employing a carer applies at the taxpayer's marginal tax rate for expenses up to £8,500 per annum.
Prior to the 1999 budget, this tax allowance was only available if a taxpayer employed a carer to care for either the incapacitated taxpayer or his or her incapacitated spouse. However, in the 1999 budget I announced a major widening of the scope of this allowance. The allowance is now available to family members who employ a carer in respect of a totally incapacitated person. This means that a number of family members can now share the cost of employing a carer and share the allowances between them, subject to the overall ceiling of £8,500 in any one year. In addition, carers can now be employed on an individual basis or through an agency. These were significant improvements in the scope of the allowance.
Any further changes in this relief will be considered in the context of a review I will be undertaking this year of tax reliefs available for taxpayers assisting in the upkeep of a dependent relative, an aged person or an incapacitated person.