Dáil Éireann díospóireacht -
Tuesday, 16 May 1995

Vol. 452 No. 8

Written Answers. - Social Welfare Benefits.

Mary Wallace

Ceist:

101 Miss M. Wallace asked the Minister for Finance the amount of tax-free allowance available to parents for the expense of providing for a child with a disability in each of the last 20 years; and the plans, if any, he has to increase this allowance. [8885/95]

Minister for Finance (Mr. Quinn)

Parents with a child who is permanently incapacitated by reason of mental or physical infirmity are entitled to claim, in addition to the normal income tax allowances, the incapacitated child allowance of up to £600. This allowance is reduced pound for pound for any income the child has in his/her own right in excess of £2,100. The following table sets out the amount of the allowance in each of the last 20 years as requested by the Deputy.

As regards medical expenses parents may also, of course, claim tax relief in respect of non-reimbursable medical expenses in excess of £200 incurred in any year in respect of their family, including dependent children up to the age of 16, or up to 21 years of age if the child is in full-time education. Relief may also be available in the case of incapacitated children over the age of 21 who are fully dependent on their parents.

It is the Government's policy to continue the process of tax reform which is to concentrate available resources on reducing the tax burden on income earners, especially in the case of low income earners with children. This policy has been financed by way of broadening the tax base and curtailing discretionary income tax reliefs. In line with this policy the incapacitated child allowance, among a number of other small reliefs, has not been increased in recent years. In addition, it is considered that the income tax code is not the most effective or appropriate vehicle for making provision for the special needs of incapacitated persons. I believe that the legitimate needs of disabled persons can best be addressed through the direct expenditure system where such needs can be more accurately assessed by trained professionals and addressed wherever appropriate.

Year	Allowance
	£
1975/76	310
1976/77	320
1977/78	320
1978/79	320
1979/80	320
1980/81	390
1981/82	500
1982/83	500
1983/84	500
1984/85	500
1985/86	600
1986/87	600
1987/88	600
1988/89	600
1989/90	600
1990/91	600
1991/92	600
1992/93	600
1993/94	600
1994/95	600