John Browne
Ceist:74 Mr. Browne (Wexford) asked the Minister for Finance the reason a person (details supplied) in County Wexford has had her tax-free allowance reduced. [9503/97]
Written Answers. - Tax Reliefs.
I am informed by the Revenue Commissioners that the taxpayer and her husband are jointly assessed for tax. A portion of their combined tax-free allowances is allocated to the taxpayer for use in her employment and the balance to her husband for use against his private pension. Her husband also receives a pension from the Department of Social Welfare which while taxable is paid gross i.e. without tax being deducted.
The tax on the social welfare pension is collected by reducing the couple's tax-free allowances by the amount of payment received. The couple's net tax-free allowances (tax-free allowances less social welfare payment) for 1997-98 are less than their allowances for 1996-97 as the husband's social welfare pension is likely to increase by an amount greater than the increase in the tax exemption limit from £9,000 to £9,200.