Willie Penrose (Westmeath, Labour)
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Question 201: To ask the Minister for Finance if consideration will be given to granting an exemption in VRT payment, in regard to kit cars which are constructed by the owners thereof; when the full amount of VRT would become payable; and if he will make a statement on the matter. [4183/05]

Brian Cowen (Laois-Offaly, Fianna Fail)
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Vehicle registration tax, VRT, is a tax on the registration of vehicles, regardless of their source, and is charged at the time when the vehicle is registered in the State. It is not a tax on the manufacture, supply or importation of motor vehicles.

Section 130A of the Finance Act 1992 provides that VRT is payable on the registration of a kit car, where in the construction of the vehicle, a new chassis is used or where the chassis is derived from a vehicle which is not registered in the State. However, VRT is not payable on the registration of a kit car, where in the construction of the vehicle, the chassis is derived from a vehicle which was already registered in the State.

The amount of VRT to be paid on a kit car is determined by the Revenue Commissioners and is comparable to the amount payable in respect of a conventional car of the same size and specification. A specialist consultant is engaged by the Revenue Commissioners to assist in this determination. It is ascertained by reference to the type of kit used in the manufacture of the vehicle and the donor vehicle used where appropriate.

The current legislation ensures equality of treatment in regard to VRT as between kit cars and conventional cars. In this respect, I do not intend to make any changes.

Joan Burton (Dublin West, Labour)
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Question 202: To ask the Minister for Finance the medical services and expenditure by a taxpayer which qualifies for tax relief; and if plastic surgery or other medical works on procedures undergone to provide cosmetic improvements qualify when such work is undertaken for bodily enhancement as opposed to medical necessity. [4189/05]

Brian Cowen (Laois-Offaly, Fianna Fail)
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Tax relief for health expenses is provided for under section 469 of the Taxes Consolidation Act 1997. The relief is granted at the highest rate of tax at which the taxpayer is chargeable for the year of the claim. Relief cannot be claimed for any expenditure that has been or will be reimbursed by a medical insurer or where a compensation payment is or will be made in respect of the expenditure.

The first €125 of any medical expenses incurred in any tax year is borne by the taxpayer. In the case of an individual claiming relief in respect of two or more persons, the taxpayer must bear the first €250. Claims for health expenses are made on form MED1. While it is not necessary to submit receipts with the form MED1, the receipts relating to the costs must be retained by the individual as he or she may be asked to produce them if the claim is chosen for detailed examination.

An individual may claim tax relief on certain medical expenses incurred by him or her on his or her own behalf, on behalf of a dependant, or on behalf of a relative. A dependant is any relative of the taxpayer or any other person who at any time during the year of claim is aged 65 years or over or who is permanently incapacitated by reason of mental or physical infirmity. A relative is defined as a husband, wife, ancestor, lineal descendant, brother or sister; mother or father of the taxpayer's spouse; brother or sister of the taxpayer's spouse; spouse of the taxpayer's son or daughter; or the taxpayer's child or any other child, who for the year of the claim, is in his or her custody and maintained at his or her expense and under 18 years of age, or, if over 18 years of age, is receiving full-time education.

Only health expenses incurred in the provision of "health care" qualify for tax relief. Section 469 of the Taxes Consolidation Act 1997 defines "health care" as meaning the prevention, diagnosis, alleviation or treatment of an ailment, injury, infirmity, defect or disability, and includes care received by a woman in respect of a pregnancy as well as routine maternity care. Expenditure that qualifies for relief includes costs of doctors and consultants fees; diagnostic procedures carried out on the advice of a practitioner; drugs or medicines prescribed by a doctor or consultant; maintenance or treatment in a hospital or nursing home which is approved by the Minister for Health and Children or approved for the purposes of health expenses relief by the Minister for Finance after consultation with the Minister for Health and Children; supply, maintenance or repair of any medical, surgical, dental or nursing appliance used on the advice of a practitioner; physiotherapy or similar treatment prescribed by a practitioner; orthoptic or similar treatment prescribed by a practitioner; costs of speech and language therapy carried out by a speech and language therapist for a qualifying child, allowable from 6 April 2001 where a speech and language therapist means an individual approved by the Minister for Health and Children; transport by ambulance; costs of educational psychological assessments carried out by an educational psychologist for a qualifying child, allowable from 6 April 2001 where an educational psychologist means an individual who is registered with the Minister for Education and Science; certain items of expenditure in respect of a child suffering from a serious life threatening illness; kidney patients' expenses, up to a maximum amount depending on whether the patient uses hospital dialysis, home dialysis or CAPD; specialised dental treatment; routine maternity care, allowable from 6 April 2001; and in vitro fertilization.

Where qualifying health care is only available outside Ireland, the cost of reasonable travelling and accommodation expenses can also be claimed as a health expense. In such cases, the expenses of one person accompanying the patient may also be allowed where the condition of the patient requires it.

Plastic surgery or other medical works or procedures undertaken on purely cosmetic grounds do not qualify for tax relief; nor does the cost of routine dental or ophthalmic care.

Joan Burton (Dublin West, Labour)
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Question 203: To ask the Minister for Finance the situation for tax relief purposes of medical expenses incurred outside the State by a taxpayer; if they are allowable for tax purposes; and if there are any limitations or conditions on qualifying expenditure. [4190/05]

Brian Cowen (Laois-Offaly, Fianna Fail)
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Medical expenses incurred outside of the State qualify for tax relief on the same basis as medical expenses incurred within the State provided that the following conditions apply. As regards the cost of a medical practitioner, the medical practitioner is entitled, under the laws of the country in which the care is provided, to practise medicine or dentistry there; and as regards the cost of the hospital or nursing home, the hospital or nursing home is approved for the purposes of tax relief under the heading of health expenses by the Minister for Finance after consultation with the Minister for Health and Children. A full list of approved hospitals and nursing homes is available on the Revenue Commissioners website, www.revenue.ie.

Where qualifying health care is, in regard to a specific health expense, obtainable only outside the State, reasonable expenses of travelling and accommodation for the patient may be allowed. In such a case, the expenses of one person accompanying the patient may also be allowed where the condition of the patient requires it. Where the patient is a child, the expenses of one parent may generally be allowed and, exceptionally, of both parents where it is clear that both have to be in attendance.

Relief cannot be claimed for any expenditure that has been or will be reimbursed by a medical insurer or where a compensation payment is or will be made in respect of the expenditure. The first €125 of any medical expenses incurred in any tax year is borne by the taxpayer. In the case of an individual claiming relief in respect of two or more persons, the taxpayer must bear the first €250.

While there is no upper limit to the amount of qualifying health expenses that a taxpayer may claim, tax relief is available only against tax that is actually paid in the State and only to the extent that tax has been paid.