The home carer's tax allowance, now converted into a tax credit, amounting to £3,000 or 3,810 at the standard rate of tax, was introduced in the Finance Act, 2000, in respect of those spouses of married one income families who work in the home caring for children, the aged or incapacitated persons. It may be claimed by a married couple who are jointly assessed to tax and where one spouse, the home carer, cares for one or more dependent persons.
A dependent person is defined as a child in respect of whom child benefit is being paid, a person aged 65 years or over, or a person who is permanently incapacitated by reason of mental of physical infirmity. The definition of a dependent person does not include a spouse as the allowance was never intended to cater for such a situation.