Dáil Éireann debate -
Wednesday, 7 Jun 2000

Vol. 520 No. 4

Written Answers. - Tax Reliefs.

Michael Bell

Question:

83 Mr. Bell asked the Minister for Finance if he will distribute the very useful and informative explanatory leaflet from Med 1 to all PAYE taxpayers in the same way as the general explanatory leaflet is distributed, in view of the fact many taxpayers may not know that they can claim against medical expenses. [15795/00]

Minister for Finance (Mr. McCreevy):

I am advised by the Revenue Commissioners that, while every effort is made to publicise the availability of tax relief for unreimbursed medical expenses, they will, however, look at ways of improving the take-up of the relief.

Greater publicity will be given to the existence of the relief in a targeted way. For example, it should be possible to make appropriate leaflets and posters available in hospitals, health board premises, doctors' surgeries and public libraries. The use of Aertel and of Revenue's internet site will also be looked at. Greater prominence will be given to the relief in the PAYE information leaflet that issues with tax-free allowance certificates.

However, the issue of a form Med 1 to all PAYE taxpayers as suggested by the Deputy is not a practical proposition. The cost of carrying out this exercise would be significant as the form would have to be issued to some 1.8 million PAYE taxpayers. Given that 56,000 PAYE taxpayers already claim the relief and that 1,164,000 persons or 31.4% of the population are covered by medical cards, a general issue of the form to the entire PAYE workforce is not considered necessary. It is likely that the unexpected receipt of the form in many households would create confusion and lead to unnecessary contact with the PAYE tax offices. In many cases the taxpayer would contact the tax office only to find out that he or she had no entitlement to any health expenses relief.

Nevertheless, the Deputy has raised a valid point and the Revenue Commissioners will follow it up in the manner outlined above.

Michael Ring

Question:

84 Mr. Ring asked the Minister for Finance the regulations and relief available for urban renewal schemes. [15796/00]

Minister for Finance (Mr. McCreevy):

The regulations covering the urban renewal scheme are a matter for the Minister for the Environment and Local Government. The tax reliefs for the areas and sub-areas designated under the 1998 urban renewal scheme are as set out in section 372 of the Taxes Consolidation Act, 1997. The scheme provides for capital allowances of 100% in respect of qualifying construction or refurbishment expenditure incurred on qualifying commercial buildings and capital allowances of up to 100% in respect of qualifying expenditure incurred on the construction or refurbishment of qualifying industrial buildings. In the case of lessors the relief is written off at 50% in year one and the remainder at 4% per annum. Owner-occupiers can qualify for similar relief but can also avail of free depreciation of 50%, which allows the owner to defer writing off the year one allowance if they so wish. The scheme also provides for relief in respect of expenditure incurred on the refurbishment, conversion or construction of residential property. In the case of rented residential property, relief is available against all Irish rental income in respect of 100% of qualifying expenditure incurred on the refurbishment, conversion or construction of qualifying property. Owner-occupiers can also avail of relief of 100% over ten years against all income in respect of qualifying refurbishment-conversion expenditure incurred on qualifying residential property. In the case of construction expenditure incurred on residential property, owner-occupiers are entitled to relief at 50% of the qualifying expenditure over ten years against all income.