Thursday, 24 October 2013

Questions (59)

Robert Troy


59. Deputy Robert Troy asked the Minister for Finance if he will clarify the position regarding which parent would be allowed the single parent tax credit in the case of one child living with his or her mother and a second child living with its father, which is a common situation. [45470/13]

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Written answers (Question to Finance)

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.