Written Answers Nos. 98-117
98. Deputy Bríd Smith asked the Minister for Transport the details of any contracts or services procured by his Department with top security, including any that are subcontracted to top security; the value of such contracts since 2015 to date; and if he will make a statement on the matter. [49008/22]
Amharc ar fhreagraThe tables below include the cost of services provided by Top Security to the Department of Transport offices in Dublin and Cork.
|
Morbury T/A Top Security (Cork Office) |
Year |
Amount |
|
Morbury T/ A Top Security (Cork Office) |
2015 |
€27,059.39 |
|
Morbury T/A Top Security (Cork Office) |
2016 |
€27,599.36 |
|
Morbury T/A Top Security (Cork Office) |
2017 |
€27,697.14 |
|
Morbury T/A Top Security (Cork Office) |
2018 |
€29,565.76 |
|
Morbury T/A Top Security (Cork Office) |
2019 |
€28,974.89 |
|
Morbury T/A Top Security (Cork Office) |
2020 |
€28,693.81 |
|
Morbury T/A Top Security (Cork Office) |
2021 |
€2,046.03 |
|
Total |
€171,636.38 |
|
Top Security (Dublin Office) |
Year |
Amount |
|
Top Security (Dublin Office) |
2020 |
€3,991.11 |
|
Top Security (Dublin Office) |
2021 |
€2,265.68 |
|
Top Security (Dublin Office) |
2022 |
€17,637.13 |
|
Total |
€23,893.92 |
99. Deputy Niamh Smyth asked the Minister for Transport if a driving test will be expedited for an employee (detail supplied) who cannot get to work unless they can drive; and if he will make a statement on the matter. [49087/22]
Amharc ar fhreagraThe operation of the national driving test service is the statutory responsibility of the Road Safety Authority (RSA).
Individual cases are a matter for the Authority and the question in relation to this case is being referred to it for direct reply.
I would ask the Deputy to contact my office if a response has not been received within ten days.
100. Deputy Denis Naughten asked the Minister for Finance the reason that the tax credit for renters does not apply to recipients of RAS and HAP tenancies; the reason that it will not apply to the top-up payment paid directly to landlords under such tenancies; if the relief will apply to families paying rents to local authorities or housing associations; and if he will make a statement on the matter. [48947/22]
Amharc ar fhreagra106. Deputy Brendan Griffin asked the Minister for Finance if clarification will be provided regarding rent credits (details supplied); and if he will make a statement on the matter. [48773/22]
Amharc ar fhreagra111. Deputy Denis Naughten asked the Minister for Finance the estimated cost of the provision of the tax credit to renters of accommodation which is their primary principle residence; the reason that it does not apply to the rental of student accommodation; the reason it does not apply to recipients of RAS and HAP tenancies and the reason it will not apply to the top-up payment paid directly to landlords under such tenancies; if the relief will apply to families paying rents to local authorities or housing associations;his plans, if any, to consider such categories of tenants; when it is expected that the relief will be available to tenants; and if he will make a statement on the matter. [48946/22]
Amharc ar fhreagra117. Deputy Michael Lowry asked the Minister for Finance if persons who are renting under a licence agreement will be able to avail of the proposed renter's €500 tax credit that was announced in Budget 2023; the process which is required to apply for the €500 tax credit; and if he will make a statement on the matter. [49086/22]
Amharc ar fhreagraI propose to take Questions Nos. 100, 106, 111 and 117 together.
As the Deputies are aware, on Budget Day, I announced a €500 Rent Tax Credit which it is proposed will be claimable in respect of rent paid in 2022 and subsequent years to end-2025. The estimated cost of this measure in respect of each relevant year of assessment is €200 million.
The intention is that, in order for a person to be in a position to claim the credit in a year :
- the rent paid must be in respect of the person’s principal private residence,
- the person living in the rented property themselves, or their spouse/civil partner, must have paid the rent and sufficient tax to avail of the credit,
- the tenancy must be registered with the Residential Tenancies Board (RTB) but only where this is already a legal requirement.
Tenants in the rent-a-room scheme and in student accommodation will also be able to claim the tax credit, subject to compliance with bullet points one and two above.
In response to Deputy Naughten's questions, and as stated in my Budget address, the rent tax credit is aimed at those who do not get any other State housing supports. It is not intended that tenants of local authorities, tenants in receipt of the Housing Assistance Payment, tenants who are supported by the Rental Accommodation Scheme or who are renting from Approved Housing Bodies will be entitled to claim the relief.
A number of the above conditions applied in the past in respect of the previous “Allowance for Rent paid ” measure.
As mentioned above, the rent tax credit will be available in respect of rent paid during the course of the 2022 year of assessment and subsequent years. I am informed by Revenue that taxpayers will be required to complete an Income Tax Return in order to make a claim in respect of rent paid during the 2022 year of assessment.
Income Tax Returns for the 2022 year of assessment will be available for completion and submission in early January 2023. Further details in relation to the information and supporting documentation taxpayers will be required to provide when making a claim in respect of rent paid during 2022 will be published to the Revenue.ie website in early January 2023. Details in relation to the claim process for rent paid during the 2023 and subsequent years of assessment will also be published in due course.
Qualification/compliance requirements are continuing to be worked through at present and the aim is to have them finalised in the coming days in the context of the preparation of the Finance Bill.
101. Deputy Robert Troy asked the Minister for Finance if he will provide an update on a Medical Board of Appeal case by a person (details supplied). [49081/22]
Amharc ar fhreagra113. Deputy Robert Troy asked the Minister for Finance if he will provide an urgent update regarding the replacement of the Medical Board of Appeal (details supplied); and the way in which appeals are currently being progressed in the absence of the Board; and if he will make a statement on the matter. [49024/22]
Amharc ar fhreagraI propose to take Questions Nos. 101 and 113 together.
Following the resignation of all members of the previous Disabled Drivers Medical Board of Appeal, effective from 30th November 2021, two Expression of Interest campaigns have been held, seeking suitable candidates for the Board. The Department of Health leads on all actions and tasks with respect to the Expression of Interest Campaigns. Department of Finance officials provide support to the Department of Health in this matter.
The first campaign closed on 29th April however this did not result in sufficient suitable candidates coming forward. Therefore, a second round was issued with a closing date of 5th July 2022. From these two campaigns, three suitable candidates have been identified and are completing Garda vetting. Five members are legislatively required for a functional Board with a quorum of three needed for any appeal hearing; it is planned to interview two further candidates shortly.
Once these processes have been completed for all candidates the Minister for Finance will then be in a position to appoint any suitable Department of Health nominee to the Board. When the new Board is up and running, it will consider the best way of ensuring outstanding appeals are addressed as quickly as possible.
Requests for appeal hearings can be sent to the DDMBA secretary based in the National Rehabilitation Hospital. New appeal hearing dates will be issued once the new Board is in place. Assessments for the primary medical certificate, by the HSE, are continuing to take place.
102. Deputy Claire Kerrane asked the Minister for Finance the supports that are in place regarding benefit-in-kind to reduce the impact of higher financial costs for those workers who commute as part of their job considering the ongoing cost-of-living crisis, the recent changes to the benefit and the fact that these workers use vehicles for their work; and if he will make a statement on the matter. [48674/22]
Amharc ar fhreagra110. Deputy Denis Naughten asked the Minister for Finance if consideration is being given to a deferral of the planned changes to the company car benefit-in-kind regime, which is due to come into effect on 1 January 2023, in view of the impact that it will have on sales representatives who require a car as a tool of their trade; if there is any provision to be made for such employees; and if he will make a statement on the matter. [48945/22]
Amharc ar fhreagraI propose to take Questions Nos. 102 and 110 together.
At the outset, the Deputy should note that recent Government policy has focused on strengthening the environmental rationale behind company car taxation. Until the changes I brought in as part of the Finance Act 2019, Ireland’s vehicle benefit-in-kind regime was unusual in that there was no overall CO2 rationale in the regime. This is despite a CO2 based vehicle BIK regime being legislated for as far back as 2008 (but never having been commenced).
In Finance Act 2019, I legislated for a CO2-based BIK regime for company cars from 1 January 2023. From that date the amount taxable as BIK remains determined by the car’s original market value (OMV) and the annual business kilometres driven, while new CO2 emissions-based bands will determine whether a standard, discounted, or surcharged rate is taxable. The number of mileage bands is reduced from five to four. EVs will benefit from a preferential rate of BIK, ranging from 9 – 22.5% depending on mileage. Fossil-fuel vehicles will be subject to higher BIK rates, up to 37.5%. This new structure with CO2-based discounts and surcharges will incentivise employers to provide employees with low-emission cars.
I am aware there have been arguments surrounding the mileage bands in the new BIK structure as they can be perceived as incentivising higher mileage to avail of lower rates, leading to higher levels of emissions. The rationale behind the mileage bands is that the greater the business mileage, the more the car is a benefit to the company rather than its employee (on average); and the more the car depreciates in value, the less of a benefit it is to the employee (in years 2 and 3) as the asset from which the benefit is derived is depreciating faster. Mileage bands also ensure that cars more integral to the conduct of business receive preferential tax treatment.
I believe that better value for money for the taxpayer is achieved by curtailing the amount of subsidies available and building an environmental rationale directly into the BIK regime. It was determined in this context that reforming the BIK system to include emissions bands provides for a more sustainable environmental rationale than the continuation of the current system with exemptions for electric vehicles (EVs). This will bring the taxation system around company cars into step with other CO2-based motor taxes as well as the long-established CO2-based vehicle BIK regimes in other member states.
In addition to the above and in light of government commitments on climate change, Budget 2022 extended the preferential BIK treatment for EVs to end 2025 with a tapering mechanism on the vehicle value threshold. This BIK exemption forms part of a broader series of very generous measures to support the uptake of EVs, including a reduced rate of 7% VRT, a VRT relief of up to €5,000, low motor tax of €120 per annum, SEAI grants, discounted tolls fees, and 0% BIK on electric charging.
Finally, it should be noted that this new BIK charging mechanism was legislated for in 2019 and was announced as part of Budget 2020. I am satisfied that this has provided a sufficient lead in time to adapt to this new system before its implementation in 2023. Therefore there are no plans to review it.
103. Deputy Michael McNamara asked the Minister for Finance the number of and dates of meetings that have taken place between him and or the Secretary General of his Department and the Governor of the Central Bank of Ireland since June 2020; and if he will make a statement on the matter. [48702/22]
Amharc ar fhreagraOver the period, from the beginning of June 2020 until the end of September 2022, that the Deputy’s question refers to, there have been a total of 48 meetings with the Governor of the Central Bank of Ireland and both myself, as Minister for Finance, and the Secretary General of the Department. I have met with the Governor on 23 occasions during that period and the Secretary General has had a further 25 meetings with the Governor in that period. Of the meetings with the Secretary General, 18 took place with the former Secretary General, Derek Moran, and the current Secretary General John Hogan met with the Governor on 7 occasions.
The dates of the meetings are set out in the tables below;
Meetings with Minister for Finance
|
Thursday 2 July 2020 |
Monday 24 January 2022 |
|
Monday 31 August 2020 |
Monday 14 February 2022 |
|
Monday 7 December 2020 |
Monday 11 April 2022 |
|
Monday 21 December 2020 |
Tuesday 17 May 2022 |
|
Monday 11 January 2021 |
Monday 13 June 2022 |
|
Monday 8 February 2021 |
Monday 12 September 2022 |
|
Friday 19 February 2021 |
|
|
Monday 8 March 2021 |
|
|
Monday 12 April 2021 |
|
|
Monday 24 May 2021 |
|
|
Monday 21 June 2021 |
|
|
Monday 19 July 2021 |
|
|
Monday 30 August 2021 |
|
|
Monday 27 September 2021 |
|
|
Wednesday 20 October 2021 |
|
|
Monday 22 November 2021 |
|
|
Wednesday 15 December 2021 |
Meetings with the Secretary General
|
Thursday 25 June 2020 |
|
Tuesday 7 July 2020 |
|
Friday 31 July 2020 |
|
Monday 19 October 2020 |
|
Friday 23 October 2020 |
|
Wednesday 9 December 2020 |
|
Tuesday 15 December 2020 |
|
Friday 18 December 2020 |
|
Monday 4 January 2021 |
|
Tuesday 5 January 2021 |
|
Thursday 11 February 2021 |
|
Thursday 25 February 2021 |
|
Wednesday 7 April 2021 |
|
Tuesday 13 April 2021 |
|
Friday 7 May 2021 |
|
Friday 14 May 2021 |
|
Tuesday 25 May 2021 |
|
Saturday 5 June 2021 |
|
Tuesday 22 June 2021 |
|
Wednesday 27 October 2021 |
|
Wednesday 26 January 2022 |
|
Thursday 10 February 2022 |
|
Tuesday 10 May 2022 |
|
Thursday 14 July 2022 |
|
Friday 16 September 2022 |
104. Deputy Steven Matthews asked the Minister for Finance if his attention has been drawn to a report published by an organisation (details supplied); if he has considered the recommendations made in the report in relation to the provision of mortgages and other financial products to cancer survivors; and if he will make a statement on the matter. [48708/22]
Amharc ar fhreagraI note the report referred to by the Deputy.
In relation to mortgage lending, there are a number of legal and regulatory requirements governing the provision of mortgage credit to consumers. These are primarily designed to ensure that such credit is suitable and affordable for the consumer.
For example, the European Union (Consumer Mortgage Credit Agreements) Regulations 2016 requires lenders to make a thorough assessment of the consumer's creditworthiness and that such an assessment shall take appropriate account of factors relevant to verifying the prospect of the consumer being able to meet his or her obligations under such a credit agreement. The Central Bank's Consumer Protection Code also provides that regulated mortgage lenders should gather relevant sufficient information from a consumer, such as the consumer's needs and objectives, personal circumstances, financial situation prior to offering a product or service to a consumer including a mortgage.
There are also other related requirements associated with the provision of a mortgage such as that contained in section 126 of the Consumer Credit Act 1995 which provides that mortgage lenders must ensure that a mortgage applicant has a life assurance policy in place before granting a mortgage loan.
This is an important statutory provision which is designed to protect the borrower's dependants and their home should the borrower die before the mortgage has been repaid. However, the Act also recognises that in certain cases such a protection is not necessary or would not be appropriate and it provides for a number of limited exemptions to this statutory obligation. These exceptions are:
- where the house in respect of which the loan is made is, in the mortgage lender's opinion, not intended for use as the principal residence of the borrower or of his/her dependants;
- loans to persons who belong to a class of persons which would not be acceptable to an insurer, or which would only be acceptable to an insurer at a premium significantly higher than that payable by borrowers generally;
- loans to persons who are over 50 years of age at the time the loan is approved;
- loans to persons who, at the time the loan is made, have otherwise arranged life assurance, providing for payment of a sum, in the event of death, that will at least cover the outstanding balance on the mortgage.
However, it should also be noted that, as a contractual matter outside of the above statutory framework, mortgage lenders could still require that a life assurance policy is put in place as a condition for a mortgage. In such circumstances that would be a business and commercial matter for the individual lender.
If an applicant for a mortgage or another financial product, such as life assurance, is not satisfied with the way a regulated firm is dealing with them, or they believe that the regulated firm is not following the requirements of the Central Bank’s codes and regulations or other financial services law, they should make a complaint directly to the regulated firm.
Furthermore, if the person is not satisfied with the response from the regulated entity to that complaint, s/he may then submit the matter to the statutory and independent Financial Services and Pensions Ombudsman.
More generally in the area of consumer protection, the Deputy may wish to note that the Central Bank has just launched a review of the Consumer Protection Code and has issued a Discussion Paper to assist this process. The Central Bank has indicated that the primary purpose of the Discussion Paper is to facilitate an engagement by the Central Bank with a range of interested parties, to enhance broader understanding of the role and work of the Central Bank in terms of consumer protection and to inform the Central Bank as it commences its work on its review of the Consumer Protection Code.
105. Deputy Michael McNamara asked the Minister for Finance the number of persons within his Department who are working remotely on a part-time or full-time basis in County Clare in tabular form; and if he will make a statement on the matter. [48734/22]
Amharc ar fhreagraMy Department launched it's Blended Working Policy on 1st July 2022. The policy was developed in line with the parameters of the Civil Service Blended Working Policy Framework.
The office remains the principle workplace and blended working arrangements are agreed at a local level in each business unit. A key principle of the policy is that we ensure business needs are met to the highest professional standards while allowing for the maximum amount of flexibility and personal choice for our staff in relation to their working arrangements. There is no option to work remotely full time.
Blended working is available to the majority of staff with the exception of a small number in roles that are customer facing where office attendance is necessary to undertake the duties of the role.
My Department does not have any offices based in County Clare.
107. Deputy Emer Higgins asked the Minister for Finance his views in relation to the trajectory of the Euro; the steps that are being taken at both national and European level to protect the value of the Euro; and if he will make a statement on the matter. [48781/22]
Amharc ar fhreagraBetween the start of the year and the end of September, the euro depreciated by 2.6 per cent in nominal effective terms, mainly driven by a weakening against the Chinese renminbi, emerging market currencies and particularly the US dollar. However, the euro is up 5.1 per cent against the pound at the end of September.
The 13.8 per cent depreciation in the euro relative to the dollar reflects a myriad of factors, including the proximity of and Europe’s greater exposure to the war in Ukraine. More broadly, during periods of turbulence and uncertainty, the safe haven effect leads to a general depreciation of currencies against the US dollar. The depreciation of the euro against the dollar also reflects the European and US economies being at different stages of recovery, with US monetary policy tightening happening earlier.
Of course, exchange rate developments impact the European economy and inflation. It is for this reason that my fellow Finance Ministers and I work alongside the European Commission and the European Central Bank (ECB) to regularly take stock of the emerging economic outlook, including exchange rate developments. This issue was last discussed at the Eurogroup on 3rd October, with the topic regularly occurring ahead of international meetings of the World Bank Group and the IMF. However, it is preferable not to comment in detail on exchange rate movements as they are market determined. In addition, the Deputy will be aware that monetary policy setting in the euro area is the exclusive responsibility of the ECB, with its mandate to maintain price stability. The ECB has communicated clearly that it is monitoring market movements but that the exchange rate is not something that is targeted.
In terms of government policy, we can act to enhance the resilience of our economies through continued structural reforms and competitiveness improvements and by boosting our productivity at national level. In addition, as set out in the Eurogroup Statement earlier this week, close coordination of economic policies is needed to address the challenges we face. In this regard, the reforms and investments under the Recovery and Resilience Facility will further improve the sustainability and resilience of our economies.
In short, there is a strong and continued focus at Eurogroup on pursuing the right economic policy mix and further deepening Economic and Monetary Union so as to enhance the international attractiveness of the euro as a global currency.
108. Deputy Jennifer Whitmore asked the Minister for Finance if he will consider reducing VAT on all reusables to make reusable items more affordable; if he will consider making period pants 0% VAT, similar to other sanitary products given that reusable period pants are a sanitary product; and if he will make a statement on the matter. [48854/22]
Amharc ar fhreagraThe VAT rating of goods and services is subject to EU VAT law, with which Irish VAT law must comply. In general, the Directive provides that all goods and services are liable to VAT at the standard rate unless they fall within Annex III of the Directive, in respect of which Member States may apply either one or two reduced rates of VAT. Ireland currently operates two reduced rates of VAT, 13.5% and 9%, as permitted by the Directive. In addition, since April 2022, a limited number of goods and services within Annex III can have a zero rate of VAT applied. The VAT Directive does not permit a distinction to be drawn between similar products based on their reusability.
As I announced in Budget 2023, the 9% VAT rate applied to limited number of period products, including period pants, will be reduced to zero from 1 January 2023.
109. Deputy Jennifer Whitmore asked the Minister for Finance if he will consider introducing right-to-be-forgotten legislation which will ensure that after a specified period of time, those who have survived cancer either do not have to declare their diagnosis, and or can no longer be treated differently to those who have not had a cancer diagnosis when applying for some types of insurance and or loans; and if he will make a statement on the matter. [48855/22]
Amharc ar fhreagraI note that the Deputy’s question refers to the “Right to be Forgotten” in the context of cancer survivors accessing certain financial services, a sensitive issue for many in our community.
As the Deputy may be aware, this important policy matter is being considered at EU level. The European Commission’s 'Europe’s Beating Cancer Plan' includes an initiative for 2021-2023 to “Address fair access for cancer survivors to financial services (including insurance), via a code of conduct and a reflection on long-term solutions”. Earlier this year, the Commission published an exploratory study on ‘Access to financial products for persons with a history of cancer in EU Member States’ as a first step in this process.
Following the publication of this study, the Commission has stated that by the end of 2022, it will launch further work that will gather more evidence and insights on the issue. This will serve as a basis to design a first draft of the EU Code of Conduct, which the Commission plans to discuss with stakeholders, as part of implementing 'Europe’s Beating Cancer Plan'.
It is understood that the EU Code of Conduct is planned to be adopted by early 2024. My Department will continue to monitor any outputs from this work, which represents an important contribution to this issue, and will continue to engage with Insurance Ireland and other stakeholders regarding relevant developments in this area.
Separately, it may interest the Deputy to know that, with respect to mortgage protection insurance, Section 126 of the Consumer Credit Act 1995 permits lenders to provide a mortgage in situations where a borrower may be unable to obtain life insurance, or where such insurance is unduly costly compared to that payable by borrowers generally. This is important to note in the context of securing a home loan.
112. Deputy Bríd Smith asked the Minister for Finance the details of any contracts or services procured by his Department with top security, including any that are subcontracted to top security; the value of such contracts since 2015 to date; and if he will make a statement on the matter. [48997/22]
Amharc ar fhreagraI can inform the Deputy that my Department does not have any contracts, nor any that are subcontracted, with the company named. The Deputy will be aware that the ‘National Public Procurement Policy Framework’, issued by the Office of Government Procurement (OGP) in November 2019, sets out the procurement procedures to be followed by government departments and state bodies in accordance with EU rules and national guidelines. My Department operates its procurement practices in line with these procedures when seeking to purchase works, goods, or services from suppliers.
114. Deputy Ged Nash asked the Minister for Finance if he will outline all of the taxation measures announced in Budget 2023 that form part of the 2022 cost of living package and the one-off cost of each in tabular form; and if he will make a statement on the matter. [49025/22]
Amharc ar fhreagraThe Government is acutely aware of the cost pressures facing households and firms, especially the increase in fuel and other energy prices. Government has acted swiftly, and frequently, to address the cost of living challenge.
Of course, the drivers of the inflationary environment are primarily global in their nature, and are outside the ability of any one Government to offset in their entirety. At the same time, I absolutely recognise the reality that many of our people are still struggling with rising costs.
That is why Budget 2023 is a ‘Cost of Living’ Budget, built around further interventions aimed at reducing the impact of inflation.
Budget 2023 includes an overall package of €6.9 billion for next year, including adjustments to income tax bands and increases in social welfare and pension rates.
Complementing this is a set of one-off measures amounting to €4.1 billion, which take effect from the final quarter of this year. The one-off package includes approximately €0.5 billion in tax measures which are set out below in more detail.
This approach balances the need to provide necessary fiscal support to households and firms while, at the same time, avoiding a situation in which the Government’s fiscal response becomes part of the inflation problem.
|
- |
€m |
|
Extension of excise reduction on petrol, diesel and Marked Gas Oil to end-February 2023 |
281 |
|
Extension of 9% VAT rate for gas and electricity to end-February 2023 |
45 |
|
Rent tax credit that is claimable in respect of rent paid in 2022 |
200 |
115. Deputy Ged Nash asked the Minister for Finance if he will outline all of the taxation measures not announced in the Budget 2023 documentation or his speech that he intends to legislate for with the Finance Bill 2022; and if he will make a statement on the matter. [49026/22]
Amharc ar fhreagraAs the Deputy is aware, the Finance Bill each year contains a combination of items announced in the Budget and a number additional items which are not included in the Budget for various reasons. It is my intention to publish the Finance Bill on the 20th of October subject to the agreement of the Government in advance of that date.
As the Deputy will appreciate, it would not be appropriate for me to comment on the measures that may be included in the Finance Bill in advance of Government decisions on these measures.
116. Deputy Emer Higgins asked the Minister for Finance if the change to the threshold for the higher income tax band introduced in Budget 2023 also applies to retired persons; and if he will make a statement on the matter. [49085/22]
Amharc ar fhreagraAs the Deputy will be aware, Budget 2023 included a significant personal tax package with an estimated cost next year of over €1.13 billion. The Standard Rate Cut-Off Point, which is the entry point for the higher rate of income tax, is being increased by €3,200 from €36,800 to €40,000 for a single individual (8.7% increase), with commensurate increases in the bands applying to married persons and persons in civil partnerships. The main personal tax credits (personal credit, employee tax credit and earned income credit) are also being increased by €75 from €1,700 to €1,775 (4.4% increase), and the home carer tax credit is being increased €100 from €1,600 to €1,700 (6.3% increase).
Furthermore, the 2% rate band ceiling for USC will also be increased in line with the increase in the national minimum wage to ensure that a full-time adult worker who benefits from the increase in the hourly minimum wage rate of €10.50 to €11.30 will remain outside the top rates of USC. Further details can be located at the following link - www.gov.ie/en/publication/ccc22-budget-2023-taxation-measures/
I will bring forward legislative amendments in Finance Bill 2022 to give effect to the above measures from 1 January 2023. These measures will apply to all taxpayers, including retired persons, as appropriate to their individual circumstances and income levels.
Separately, there is an income tax age exemption for persons aged over 65 which means that single, widowed or surviving civil partners aged 65 or older do not pay any income tax if they earn less than €18,000 per annum with a threshold of €36,000 in place for a married couple or civil partners where one person is 65 years of age or older. The relevant income thresholds may be increased further if the individual has a qualifying child. The thresholds are increased by €575 in respect of both the first and second child, and €830 in respect of each subsequent child.
Marginal relief may be available where the individual’s or couple’s income exceeds the relevant exemption limit but is less than twice that amount. Where marginal relief applies, the individual or couple is taxed at 40% on all income above the exemption limit to a ceiling of twice the exemption limit. Once the income exceeds twice the exemption limit marginal relief is no longer available and the individual pays tax under the normal tax system.
It should be noted, however, that where the individual’s income is greater than the exemption limit but below twice that limit, the taxpayer is always given the benefit of the more favourable treatment as between the use of marginal relief or the normal tax system of credits and bands.
In the event that the Deputy’s question is specifically referring to age exemption for persons aged over 65, Budget 2023 did not include an increase to the current thresholds. While I have no plans to the change the thresholds in relation to exemptions currently granted to persons aged 65 and over, it must be noted that the current tax arrangements for persons aged 65 or older compare favourably with the tax treatment of the generality of taxpayers.
Persons aged 65 or over may also avail of the age tax credit, which currently amounts to €245 per year for single persons or €490 per year for married couples or civil partners. Reduced rates of USC also apply for persons aged 70 or older where their total income is €60,000 or less.
Additional guidance on the range of tax credits and reliefs that may be available for individuals over 65 years of age can be found in Tax and Duty Manual Part 15-01-26, which can be located at the following link – Tax and Duty Manual: www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-15/15-01-26.pdf.
