Richard Bruton (Dublin North Central, Fine Gael)
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Question 148: To ask the Minister for Finance if he will clarify a matter (details supplied); and if he will make a statement on the matter. [37607/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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I can confirm for the Deputy that there is a 2 km restriction in place for the home carer income tax credit and that a similar restriction is not in place for the dependent relative capital gains tax principal private residence exemption.

As regards income tax, Section 466A of the Taxes Consolidation Act 1997 provides for a tax credit known as the 'home carer tax credit'. Criteria for eligibility for this tax credit includes that the subject of the claim must:

be a relative of the claimant (including a relative by marriage);

be aged 65 or over, or is permanently incapacitated by reason of physical or mental illness; and

reside next door to the claimant in adjacent properties, on the same property or within 2 kilometres of the claimant. As entitlement to the home carers credit is based on the concept of active caring, a proximity requirement is appropriate.

As regards capital gains tax, subsection (11) of Section 604 of the Taxes Consolidation Act 1997 provides that an individual may claim the principal private residence capital gains tax exemption in respect of the disposal by him or her of a dwelling provided

rent free and without conditions - by him or her for use by a dependent relative. A 'dependent relative' in this context means:

the widowed parent of the claimant or of his or her spouse; and

a relative of the claimant (or a relative of the claimant's spouse) who is incapacitated by old age or infirmity.

There is no requirement for the owner of the house to live near the dependent relative. Only one dwelling can, at any given time, be the dwelling of a dependent relative for the purpose of this capital gains tax exemption.