Thursday, 24 October 2013

Questions (58)

Robert Troy

Question:

58. Deputy Robert Troy asked the Minister for Finance if he will consider making adjustments to the single parent tax credit to allow an element of tax planning whereby the spouses could elect which spouse claims the credit or the credit could be split in the most tax efficient way by the Revenue Commissioners (details supplied). [45469/13]

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Written answers (Question to Finance)

Neither the Revenue Commissioners nor my Department would ever provide advice to facilitate tax planning. I assume the Deputy is referring to the changes announced in Budget 2014 to the One-Parent Family Tax Credit. The position is that the One-Parent Family Tax Credit is being replaced with a new Single Person Child Carer Tax Credit from 1 January 2014. The Single Person Child Carer Tax Credit will be of the same value, i.e. €1,650, as the existing One-Parent Family Tax Credit and will also carry the same entitlement to the extended standard rate tax band of €36,800 per annum.

The new credit will be targeted such that it is available only to the primary carer of the child. A maximum of one credit will be available per single carer/claimant, regardless of whether he or she cares for more than one child. This is the same condition that applies to the current One-Parent Family Tax Credit.

Allocation of childcare responsibilities is primarily for parents to agree. Practical implementation issues are being considered as part of the Finance Bill process.