Dáil Éireann díospóireacht -
Tuesday, 24 Oct 2000

Vol. 524 No. 5

Written Answers. - Tax Allowances.

Paul McGrath

Ceist:

258 Mr. McGrath asked the Minister for Finance the number of widows and widowers with dependants who qualified for the additional tax allowances of £10,000, £8,000, £6,000, £4,000 and £2000 in this tax year; the cost to the Exchequer for these allowances; and the estimated cost of giving this allowance at the £10,000 rate to all widows and widowers who have dependent children. [23339/00]

Minister for Finance (Mr. McCreevy):

As the Deputy will be aware, the widowed parent bereavement allowance, is available to widowed persons with dependent children in the years following the year of bereavement. The allowance is tapered over a five year period and is currently £10,000 in year one, £8,000 in year two, £6,000 in year three, £4,000 in year four, £2,000 in year five and nil thereafter, with effect from 6 April 2000.

I am advised by the Revenue Commissioners that some 3,500 taxpayers currently qualify for the widowed parent bereavement allowance and that the full year cost to the Exchequer of this allowance, by reference to the current income tax year, is estimated at £4.4 million. The full year cost of extending a £10,000 allowance to all widows and widowers with dependent children is estimated at an additional £12.8 million by reference to an income tax year based on 2001 incomes. These estimates are provisional and are likely to be revised.