Dáil Éireann debate -
Wednesday, 22 Nov 2000

Vol. 526 No. 4

Written Answers. - Tax Reliefs.

Noel Ahern

Question:

254 Mr. N. Ahern asked the Minister for Finance if he will examine the matter of the wife and children of a deceased public servant who are on a State occupational pension plus a separate income for each child and give the reason tax relief was refused for one of the children in respect of a claim for £2,200 of orthodontic expenses; his views on such a harsh interpretation of the rules; if he will instruct that such claims be allowed in future; the reason such payments cannot be made each summer for children over 16 until they return to school in September; and if normal monthly payments of due payments can be allowed in these cases. [27034/00]

Minister for Finance (Mr. McCreevy)

In the absence of specific information about the refusal of tax relief referred to by the Deputy it is not possible to give a definitive reason for that refusal. Generally speaking, a pension payable to the child of a deceased public servant is regarded for income tax purposes as the income of the child. This is as a consequence of the O'Coindealbhain v O'Carroll tax case [4 ITR 221].

A parent can claim tax relief for health expenses, such as the cost of orthodontic treat ment, incurred in respect of a dependant child where the child's annual income is £2,100 or less. If a dependant child's income exceeds £2,100, tax relief for health expenses incurred in respect of the child cannot be claimed.

Medical expenses relief is available to individuals in respect of a dependent child where the dependent ‘is maintained by the individual at the individual's own expense for whole or part of the tax year.' However, if the child has income in its own right then he/she is not wholly dependent on the taxpayer claiming the relief. In this respect relief is not granted to the parent. However, I would note that if a child has his/her own taxable income, he/she may claim tax relief for health expenses incurred, in his or her own right, subject to the normal conditions.

I have been informed by the Revenue Commissioners, who consulted the Deputy, that the payments referred to by the Deputy in the second half of the question are related to the occupational pension payments received by the individual in question. As the pension referred to is a State pension, I would be happy to make inquiries in the matter if the Deputy furnishes me with the necessary details.