Dáil Éireann díospóireacht -
Tuesday, 21 Nov 2000

Vol. 526 No. 3

Written Answers. - Tax Reliefs.

Thomas P. Broughan

Ceist:

229 Mr. Broughan asked the Minister for Finance his views on introducing a new tax relief for employers who are themselves PAYE workers especially in the context of care workers, home help workers and others; and whether there is an inequity in the taxation system in this regard. [26627/00]

Minister for Finance (Mr. McCreevy)

The following income tax reliefs are currently available in respect of carers – relief for employed person taking care of incapacitated individual and relief for health expenses.

Tax relief of up to £8,500 per annum is available where an individual employs a carer to look after an incapacitated relative. For the purposes of this relief, a relative includes a relation by marriage, and a person in respect of whom the individual is or was the legal guardian. Carers may be employed on an individual basis or through an agency. The relief is not due where the carer is employed as a housekeeper only. The relief is available at the individual's marginal rate of tax and can, of course, be claimed by PAYE taxpayers.

An individual may claim tax relief for certain medical expenses incurred for themselves and their immediate family, or on behalf of a dependent relative in respect of whom he or she is entitled to a dependent relative tax allowance. Where the dependent relatives allowance does not apply it may be possible to obtain tax relief for covenants to the elderly or the incapacitated. Medical expenses relief is available at the taxpayer's marginal tax rate in excess of £100 for a single person or £200 for a married couple or family in a tax year. Most non-routine medical and dental expenses, not already reimbursed or reimbursable by the VHI, BUPA or regional health authorities, including such items as the cost of doctors' visits, maintenance or treatment in a hospital and transport by ambulance, are allowable.

Certain items prescribed by a doctor will also qualify for relief including, for example, engaging a qualified nurse in the case of a serious illness, physiotherapy or similar treatment, drugs and medicines, hearing aids, orthopaedic bed-chair, wheelchair-wheelchair lift – no relief is due for alteration to the building to facilitate a lift – and glucometer machine for a diabetic. Maintenance in an approved nursing home also qualifies for relief.