Dental expenses, including those listed by the Deputy, may qualify for tax relief under section 469 of the Taxes Consolidation Act 1997, which allows relief for health expenses incurred for the provision of health care. With effect from 1 January 2009, relief in respect of qualifying health expenses, with the exception of relief in respect of nursing home expenditure, is granted at the standard rate of tax. Prior to that date, the relief was available at the taxpayer's marginal rate.
Standard rating health expenses relief makes the tax system fairer and more equitable as it provides the same value benefit to all taxpayers with sufficient income against which to claim relief. Previously the system of marginal rate relief allowed higher-income individuals paying the higher rate of income tax to claim a greater relief than was available to lower-income taxpayers liable to tax at the standard rate only. The standard-rating of relief for health expenses also brings the relief more in line with other reliefs such as those for medical insurance and third level fees, which are also granted at the standard rate of tax only. However I would point out that these other reliefs mentioned have a cap on the maximum amount on which relief can be claimed whereas no cap applies on the maximum value of health expenses that can qualify for relief.
In my view the availability of relief at the standard rate of income tax for health expenses, including qualifying dental expenses, is the most appropriate use of limited fiscal resources. I therefore do not intend changing the policy in this regard at this time.
