Gerard Murphy (Cork North West, Fine Gael)
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Question 121: To ask the Minister for Finance if tax relief will be provided to a person; and if he will make a statement on the matter. [37431/05]

Brian Cowen (Laois-Offaly, Fianna Fail)
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The purchase of a site for the purposes of building a home may be liable to stamp duty at the rates applicable to non-residential property depending on the value of the site. VAT is charged on certain goods and services associated with building a house. There is no special tax relief for single parents in the stamp duty or VAT codes. However, certain income tax reliefs are available to assist single parent home-owners.

Single parents can avail of relief for interest paid on certain home loans under section 244 of the Taxes Consolidation Act 1997. Mortgage interest relief is available to individuals in respect of interest paid on loans used by the individuals solely for the purpose of defraying money employed in the purchase, repair, development or improvement of their main residence.

With respect to tax credits, single, separated or widowed persons may be entitled to the one-parent family tax credit in addition to the basic personal tax credit. The combined value of these credits is equivalent to that of the basic personal tax credit for a married person. Through the one-parent tax credit, and the extended standard rate band available to parents who qualify for such credit, the tax code recognises the financial burden involved where a lone parent has responsibility for raising a child or children single-handedly.

I would also point out that child benefit is the main instrument through which direct financial support is provided to parents in respect of children and, of course, this is available whether the parents are single, cohabiting or married. The Government has substantially increased child benefit since coming into office in 1997. Overall expenditure on child benefit has increased by 279% from €506 million in 1997 to an estimated €1,916 million in 2005.

As the Deputy will appreciate, it is not the practice to comment in the lead up to the annual budget and Finance Bill on the intention or otherwise to make changes in taxation.