Joe Higgins
Ceist:214 Mr. Higgins (Dublin West) asked the Minister for Finance if a separated person in a cohabiting second relationship is entitled to claim tax allowance for a dependent partner and children of that second relationship. [22209/97]
Written Answers. - Tax Allowances.
There are no special income tax allowances for unmarried couples living together. In this context, I would point out that tax law follows the general law relating to marriage. The basis on which the married person's tax free allowance, and double rate bands, is given derives from the Supreme Court decision in Murphy v. the Attorney General, 1980, which held that it was contrary to the Constitution for a married couple to pay more tax than two single people living together.
As regards dependent children, there is no general tax allowance for children, whether they are children of a marriage or not. The child additions to the exemption limits are available to parents or guardians at the appropriate income levels. There is a special tax allowance for an incapacitated child, which was increased from £700 to £800 in my recent budget, and this is given to the parent or guardian of the child, irrespective of marital status. Direct State provision for children is made through the child benefit system administered by the Department of Social, Community and Family Affairs.
I am conscious of the difficulties which can arise for cohabiting couples in certain circumstances. An interdepartmental working group has recently been set up under the Department of Social, Community and Family Affairs to examine the treatment of married, cohabiting and one-parent households under the tax and social welfare codes. This group is due to report by March 1998.