Brian Lenihan Jnr (Dublin West, Fianna Fail)

We dealt with the amendment in some detail last night. The position is that income tax relief in respect of health expenses will be granted at the standard rate of tax for 2009 with the exception of nursing home fees, which will continue to be granted at the marginal rate.

The changes provided for in the Finance Bill follow on from the changes made in the Finance Act 2007, with the removal of the de minimis threshold for a single individual and a married couple. The 2007 Act also provided for the removal of the requirement that there be a defined relationship between the taxpayer and the person who is the subject of the tax claim.

Standard rating health expenses relief will make the tax system fairer and more equitable for all taxpayers in accordance with Government commitments. The standardising of health expenses relief brings it in line with other reliefs such as rent relief, trade union subscriptions relief, medical insurance relief, third level fees relief and service charges relief.

In addition, the standard rating of health expenses relief will mean better value for money for the Exchequer and will ensure that the relief will benefit the broadest range of taxpayers in a fair and equitable manner.

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