Richard Bruton (Dublin North Central, Fine Gael)
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Question 535: To ask the Minister for Finance his views on relaxing the €50,000 limit for previous tax year to qualify for the SSIA pension concession in order that people who have suffered a fall in income in the Current tax year could also qualify. [1433/07]

Brian Cowen (Laois-Offaly, Fianna Fail)
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The Pensions Incentive Tax Credits scheme was introduced by me in last year's Finance Act to encourage SSIA holders, particularly those on low incomes, to continue the savings habit and to commence or improve their pension arrangements under the scheme.

For each €3 of matured SSIA funds invested by an eligible SSIA holder in an approved pension product, the Exchequer will contribute an additional €1 by way of tax credit to a maximum of €2,500. The Exchequer will also contribute an additional tax credit relating to the exit tax deducted from the SSIA on maturity and based on the proportion of SSIA funds transferred to the pension product. The main condition attaching to the Pensions Incentive Tax Credits scheme is that gross income for the year prior to the year in which the SSIA matures cannot exceed €50,000. The intention behind this condition was to target the incentive at lower income earners. Setting any limit for this purpose is always difficult because there will be some individuals who will fall marginally at the wrong side of the limit and who will not qualify for the incentive. This would be the case irrespective of what income limit was set. The income limit in the case of this incentive is reasonable, in my view, and I do not propose to change it.

Willie Penrose (Westmeath, Labour)
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Question 536: To ask the Minister for Finance if he will review the situation in relation to granting taxation relief on maintenance orders, which are made through the court system for children; if in this context he will grant tax relief on such payments by way of maintenance order which is made by way of the court system; and if he will make a statement on the matter. [1461/07]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I propose to take Questions Nos. 536 and 569 together.

Section 1025 of the Taxes Consolidation Act 1997 provides for the taxation treatment of payments made under legally enforceable arrangements by one spouse of a marriage to the other spouse in consideration, or in consequence, of the annulment or dissolution of a marriage or where the couple are separated. Legally enforceable arrangements include court orders, arbitration awards and deeds of separation including foreign orders and arrangements.

Payments for the maintenance of the other spouse are: payable without deduction of tax, deductible in computing the total income of the payer and chargeable to income tax in the hands of the recipient.

In effect the income is treated as if was the income of the recipient and not the payer. Maintenance payments in respect of children are not taxable in the hands of the children or the receiving spouse. The effect of this is that the payments are treated the same way as if the taxpayer was providing for the child out of his or her after-tax income. This is in line with the tax treatment of all other parents, where the cost of maintaining their children is not tax deductible.

I do not propose to make any changes to this arrangement.

Joan Burton (Dublin West, Labour)
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Question 538: To ask the Minister for Finance the limit for exemption from stamp duty tax payable on mortgages; the last time this limit was increased; the stamp duty rates on mortgages; if there are proposals to change these rates; the annual cost to the exchequer of abolishing this tax on mortgages; and if he will make a statement on the matter. [1494/07]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I would draw to the Deputy's attention that the stamp duty head of charge for mortgages was abolished in the recent Budget with regard to mortgage deeds executed on or after 7 December 2006. The cost of abolishing the mortgage head of charge was estimated at €20m in 2007 and in a full year. The duty was abolished in the context of the simplification of the stamp duty code for both the Revenue Commissioners and practitioners, particularly in advance of the proposed introduction of E-Stamping.

Before the stamp duty on mortgages was abolished, primary mortgages had been exempt up to the value of €254,000, and those at higher values were subject to stamp duty of 0.1% subject to a maximum duty of €630 whether in respect of residential or non-residential property. The exemption threshold for primary mortgages was raised in 2001 from £20,000 to £200,000, and was converted to €254,000 in 2002. The duty that had applied to collateral or additional mortgages was generally a €12.50 fixed duty and in the case of equitable mortgages and transfers of mortgages, was generally 0.05%, subject to a maximum of €630.