Question:
126 Dr. Upton asked the Minister for Finance if family expenditure on privately obtained speech therapy can be written off for tax purposes as medical expenditure; and his plans in relation to this situation. [24653/01]
Written Answers. - Speech Therapy Service.
The position is that, subject to the exclusion of a de minimis amount, tax relief at the marginal rate is available in respect of family expenditure on privately obtained speech therapy in respect of dependant children.
Section 469 of the Taxes Consolidation Act, 1997, provides for tax relief in respect of certain non-routine unreimbursable health expenses incurred in a tax year. In the current short tax "year" the first £74 – 94 – of health expenses in the case of a single person, or £148 – 188 – in the case of a married couple or family, is excluded from the scope of the relief. From 1 January 2002 the first 125 – £98 – in the case of a single person, or 250 – £196 – in the case of a married couple or family, are excluded from the scope of the relief. The relief can be claimed on a MED 1 form and is allowed at the taxpayer's marginal rate of tax.
The definition of "health expenses" was extended with effect from 6 April 2001 by the Finance Act, 2001, to include the cost of speech and language therapy carried out by a speech and language therapist in respect of a dependant child of the claimant. A dependent child is (1) a child of the taxpayer, or a child in the custody of the taxpayer and maintained at the taxpayer's own expense, who (a) is under the age of 18 years, or (b) if over the age of 18 years, is receiving full-time instruction at any university, college, school or other educational establishment, or (2) a child in respect of whom the taxpayer is receiving an incapacitated child tax credit.
"Speech and language therapist" means a person approved for the purposes of section 469 by the Minister for Health and Children in accordance with guidelines set down by that Minister with the consent of the Minister for Finance. I have no plans to change the current arrangements at this stage.