Dáil Éireann díospóireacht -
Tuesday, 30 Jan 2001

Vol. 529 No. 1

Written Answers. - Tax Allowances.

Paul McGrath

Ceist:

494 Mr. McGrath asked the Minister for Finance if he will confirm the personal tax allowance that will apply for taxpayers from April 2001 under the categories of single person, married couple, widowed persons, one parent family; the tax bands that will apply to the categories of single/widowed persons, one parent family, married couple with one income and a married couple with two incomes. [2028/01]

Minister for Finance (Mr. McCreevy)

Following is a table which was included in the budget 2001 book, page C30. The table outlines the personal tax credits and standard rate bands which will apply for the tax year 2001. Due to the move to a calendar year basis, we will have a short tax year in 2001 and therefore, the short year equivalents are also shown.

(1) Details of Main Income Tax Changes

In Irish Pounds

Personal Allowances at Standard Rate	Existing Allowance	Proposed Allowance	Allowance Increase	Tax Credit 12 Months *1	Tax Credit 9 Months *2
Basic Personal Allowances	£	£	£	£	£
Single Persons	4,700	5,500	800	1,100	814
Married Couples	9,400	11,000	1,600	2,200	1,628
PAYE	1,000	2,000	1,000	400	296
Additional Personal Allowances
One-Parent Family Allowance/Widowed/Other Parent	4,700	5,500	800	1,100	814

Tax Rates and Tax Bands	Existing	Proposed	Change
Rates
Standard RateTop Rate	22%44%	20%42%	2%2%
	Existing12 Months	Proposed12 Months	Increase12 Months	Proposed9 Months
Standard Rate Bands	£	£	£	£
Single/Widowed Persons	17,000	20,000	3,000	14,800
Married Couples, One Income	28,000	29,000	1,000	21,460
Married Couples, Two Incomes *3	34,000	40,000	6,000	29,600
One-Parent Familes	20,150	23,150	3,000	17,131

Exemption Limits *4	Existing12 Months	Proposed12 Months	Increase12 Months	Proposed9 Months
65 and Over	£	£	£	£
Single/Widowed	7,500	8,500	1,000	6,290
Married	15,000	17,000	2,000	12,580

Notes

f7>1Equivalent value of standard rated allowances as tax credits, i.e. £5,500 @ 20% = £1,100.

f7>2Equivalent value of tax credits for nine months, due to the alignment of the tax year with the calendar year, i.e. 2001 tax year is from April 2001-December 2001.

f7>3The tax band of £40,000 available to married couples with two incomes is transferable between spouses up to a maximum of £29,000 for any one spouse.

f7>4The Marginal Relief tax rate remains at 40%. (t continues to apply until such time as it is more beneficial for the taxpayer to be assessed under the normal taxation system).