Michael Noonan (Limerick City, Fine Gael) | Oireachtas source

I move amendment No. 38:

In page 18, to delete line 17 and substitute the following:“(d) in section 188(2A)(b) by substituting “section 462B, but without regard to subsections (1)(b), (1)(c), (3) and (5)” for “section 462, but without regard to subsections (1)(b), (2) and (3)”,”.

I propose to deal with amendments Nos. 38, 39 and 42 together. These amendments to section 7 give effect to the announcement I made on Second Stage that I intended to permit this credit to be claimed by persons other than the primary carer in certain circumstances. Since the budget announcement of this change was made, I have listened carefully to the views of Deputies and I am bringing forward an amendment which will allow the credit to be used by a non-primary carer in situations where the primary carer relinquishes his or her entitlement to claim it.

The single person child carer credit replaces the one-parent family credit from 1 January 2014. It will operate differently from the one-parent family credit by being available in the first instance to the primary carer, the individual who cares for the child for the greater part of the year. The one-parent family credit was available on the basis of the child residing with the claimant for part of the year, which led in certain cases to multiple claims in respect of the same child by different individuals.

The main features of the amended section are that the primary carer is the individual with whom the child resides for the greater part of the year; and that the primary carer can be the child's parent or the individual in whose custody the child is and who maintains the child at his or her own expense for the greater part of the year. This claimant is entitled to the credit in respect of that child. If the primary carer relinquishes that credit, another person, the secondary carer, may claim it. The child must reside with this individual for more than 100 days in aggregate in the year, which is indicative of a level of involvement in the care of the child which is supportive of the primary carer.

For the purpose of this limit, a day can include the greater part of a day.

Only one credit in respect of any child is available and an individual who is a primary carer for more than one child can get only one credit in respect of those children. However, where a primary carer relinquishes the credit, he or she is receiving in respect of two or more children, then two or more secondary carers may be able to claim the credit provided the child resides with them for at least 100 days and provided they meet the other conditions of the section. Where the person who is the primary carer retains the credit, no other individual can get a credit for any of the children in respect of whom that person acts as primary carer.

A claimant, whether a primary or a secondary claimant, must not be married, unless separated, or in a civil partnership, unless separated, or cohabiting.

The entitlement of the primary carer to the credit has precedence in all circumstances. However, if the primary carer cannot utilise the credit and relinquishes entitlement, then I propose to allow either the other parent or another person providing care to the child to make a claim for the relief. The credit is not granted simply on the basis that a claimant is obliged to provide financial maintenance for a child but rather where that adult is involved in the care of the child.

It must be pointed out to Deputies that it is still my intention to allow a claim by a primary carer and only where that claim is relinquished will a claim by a secondary carer be considered. The previous situation where an individual who had a child residing with him or her overnight could qualify for the one parent family tax credit cannot be allowed to continue.

In a case where the primary carer is not utilising the credit, a claim by a secondary claimant will be admitted. This will only be possible where the primary carer has relinquished his or her claim to the credit. The secondary carer in claiming the credit will be required to confirm that the qualifying child resides with him or her for a period or periods during the year of assessment of not fewer than 100 days. How this period of time is determined will be a matter for the primary carer and the claimant to decide among themselves.

In circumstances where a court order has been issued in respect of a child and that order provides that the child resides with both parents for equal time, it will not be possible to determine who is the primary carer based on time spent with the claimant. In such circumstances, the primary carer for the purposes of claiming the credit will be the parent who is the recipient of the social welfare child benefit. Of course, it will be open to that parent to relinquish the credit to the other parent, as in any other case.

It is not my intention to allow claims by anyone other than single persons, even where an individual responsible for a child from a relationship outside their current civil arrangements. This, therefore, excludes individuals who have remarried after the ending of a previous relationship but who continue to have access to and maintain a child from that relationship. Similarly, where a child resides with a parent who marries or subsequently remarries after a divorce, there will be no entitlement to the credit.