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

Section 7 amends section 470 of the Taxes Consolidation Act 1997 which provides relief for insurance against the expenses of illness. This amendment will have the effect of changing the definition of a child in the section to reflect the changes that were made to section 7(5) of the Health Insurance Act 1994 by the Health Insurance (Amendment) Act 2014. The amendment to the Health Insurance Act was made to allow an opportunity for all persons aged between 21 and 25 to avail of reduced premium rates on a sliding scale below the full adult price. It also removed a requirement for a person aged between 18 and 23 years to be in full time education to be eligible for a child rate of premium where offered by the insurer.

The purpose of the section is to amend the definition of child for the purposes of the reduced €500 tax relief ceiling to refer to an individual under the age of 21 years availing of a child rate of premium. The full ceiling of €1,000 will apply for all adults aged 21 and older, regardless of whether they avail of a reduced premium.

The amendment also stipulates that this provision is effective in respect of policies entered into or renewed on or after 1 May 2015.