Dáil Éireann debate -
Tuesday, 20 Nov 2001

Vol. 544 No. 3

Written Answers. - Tax Allowances.

Richard Bruton

Question:

279 Mr. R. Bruton asked the Minister for Finance the list of allowances and their value to the individual taxpayer which have been standard rated; and the remaining list of allowances and their value which are still allowable at the top rate of tax. [29068/01]

Minister for Finance (Mr. McCreevy):

Tax allowances in general were replaced by tax credits in the Finance Act, 2001.

The tax credits for the short tax year 2001 and their full year equivalents are as follows:

	Short Tax	Equivalent	Equivalent
	Year 2001	Tax Credit	Tax Credit
	IR£	Full Year IR£	Full Year Euro
Basic personal credits
Single Person	£814	£1,100	1,397
Married Person	£1,628	£2,200	2,794
Widowed Person–in year of bereavement	£1,628	£2,200	2,794
–who qualifies for one parent tax credit	£814	£1,100	1,397
–who is without dependent children	£962	£1,300	1,651
One-parent family credit	£814	£1,100	1,397
Widowed parent credit Bereaved in 2000/2001	£2,000	£2,000	2,540
Bereaved in 1999/2000	£1,600	£1,600	2,032
Bereaved in 1998/1999	£1,200	£1,200	1,524
Bereaved in 1997/1998	£800	£800	1,016
Bereaved in 1996/1997	£400	£400	508
Home carer credit	£444	£600	762
Employee credit	£296	£400	508
Age credit
Single/widowed	£119	£160	204
Married	£238	£320	408
Incapacitated child credit	£238	£320	408
Dependent relative credit	£33	£44	56
Blind person's credit–one spouse blind	£444	£600	762
–both spouses blind	£888	£1,200	1,524

In addition to the foregoing tax credits, the following allowances may apply at the standard rate in a full year:

Rent allowanceSingle
under age 55	£1,000/1,270 @ 20%
over age 55	£2,000/2,540 @ 20%
Married/widowedunder age 55	£2,000/2,540 @ 20%
over age 55	£4,000/5,080 @ 20%

Relief of up to £150/195 may apply on service charges paid to local authorities for the provision of domestic water supply, domestic refuse collection and domestic sewage disposal to independent contractors for domestic refuse collection and to group water schemes for domestic water supply.

The following allowances may apply at the marginal rate: employed person taking care of incapacitated individual – a maximum allowance of £10,000, 12,700, for a full year and £7,400 for the short tax is available to an individual who employs a person to take care of an incapacitated individual. At the standard rate of tax, the monetary equivalent is £2,000, 2,540, in a full year and £1,480 in the short tax "year". At the higher rate of tax, the monetary equivalent is £4,200, 5,334, in a full year and £3,108 in the short tax "year".

The revenue job assist allowance can be claimed by people who have been unemployed for one year or more and who take up a job. The allowance in the first year of employment is £3,000, 3,810, plus £1,000, 1,270, for each qualifying child, reducing to two-thirds of that amount in year two and one-third in year three. At the standard rate of tax, the monetary equivalents are £600, 762, and £200, 254, in year one, reducing to two-thirds of that amount in year two and one-third in year three. At the higher rate of tax, the monetary equivalents are £1,260, 1,600, and £420, 534, in year one, again reducing to two-thirds of that amount in year two and one-third in year three.

The foregoing represent the main tax credits and allowances available to the individual taxpayer.