Jim Higgins
Question:307 Mr. Higgins (Mayo) asked the Minister for Finance if persons with a bereavement in the 2000-01 tax year will be entitled to only 75% of the special tax credit. [9010/02]
Written Answers. - Tax Allowances.
The 2001 tax year ran from 6 April to 31 December 2001. That period of 270 days was 74% of a full year of 365 days. Tax credits in general were, therefore, 74% of the amounts due in a full year.
However, the 74% apportionment in 2001 did not apply to the widowed parent tax credit. A widowed parent whose spouse died in 2000-001 is entitled, with effect from 2001, to an additional tax credit in each of the five years from 2001 to 2005 inclusive. In 2001 the widowed parent tax credit was £2,000, €2,540 – the same amount as in a full year. The widowed parent tax credit was increased to €2,600 in budget 2002 and, accordingly, a person widowed in 2000-01 would be entitled to a credit of €2,100 in 2002; €1,600 in 2003; €1,100 in 2004 and €600 in 2005.
A person with dependent children, widowed in the 2000-01 tax year, is entitled in 2001 to a widowed parent tax credit of £2,000, €2,540, as indicated above, a widowed person tax credit of £814, €1034 and a one-parent family tax credit of £814, €1034.