I propose to take Questions Nos. 217 and 220 together.
It is unclear from the Deputy's questions as to the provenance of the comments and statements to which she refers. However, I will clarify the position as regards the new tax credit.
The One-Parent Family Tax Credit (OPFTC) has been replaced with a new Single Person Child Carer Tax Credit from 1 January 2014. The restructured credit will be of the same value i.e. €1,650 per annum as the one-parent family tax credit and it will also carry the same entitlement to the additional €4,000 extended standard rate band, which increases it to €36,800 per annum, before liability to higher rate of income tax arises. However, the credit will be more targeted, in that it will in the first instance, only be available to the principal carer of the child. It is only by being entitled to the credit that an individual can obtain access to the extended standard rate band.
Ultimately, the number of single fathers affected by this measure will depend on the family circumstances in each case. The person who receives the child benefit payment is being used as the initial indicator by the Revenue Commissioners to identify the individuals who are most likely to qualify for the new credit. However, eligibility for the credit will in the first place be determined by who cares for the child for most of the year. Agreement as to who will be the principal carer of a child is a matter for parents or guardians.
As a result of the Amendment which I brought forward at the Committee Stage of the Finance Bill, a primary carer may relinquish the credit such that it can be claimed by a non-primary carer.
To allow retention of the extended standard rate band by those who no longer qualify for the new tax credit, would ultimately only benefit such individuals with higher incomes, i.e. greater than €32,800 per annum.
It was always intended that the new credit would come into effect for the 2014 tax year and this was provided for in Finance Act (No. 2) 2013. Estimates of the expected yield from this measure in the initial year and in a full year were published in Budget 2014. These estimates were €18 million and €25 million respectively. The differences in the yields are generally as a result of the timing of tax returns.
