Written answers

Tuesday, 1 December 2009

12:00 pm

Photo of John DeasyJohn Deasy (Waterford, Fine Gael)
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Question 99: To ask the Minister for Finance his views on the importance of tax reliefs that persons receive on paying for the care of an incapacitated person in their home is ensuring that older people remain in their home; if his attention has been drawn to the savings to the Exchequer that have resulted from this relief; and if he will make a statement on the matter. [43983/09]

Photo of Brian Lenihan JnrBrian Lenihan Jnr (Dublin West, Fianna Fail)
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Section 467 of the Taxes Consolidation Act 1997, provides for a tax deduction at an individual's marginal rate of tax in respect of the costs incurred by that individual of employing another person (including a person whose services are provided by or through an agency) to take care of him/herself, a spouse or a relative who is totally incapacitated by reason of physical or mental infirmity. The maximum amount allowable for tax relief is €50,000. The scheme cost approximately €2.8 million in 2006, the latest year for which statistics are available. However, it is an important measure in allowing incapacitated individuals to be cared for in the home environment.

This cost recognises the contribution being made by private individuals - of the order of €4 million per annum, assuming the 41% rate of relief in all cases - in relation to their own care or the care of others, which otherwise might have to be borne by the State.

Finally, as the Deputy will be aware, tax relief is also available at an individual's marginal rate of tax for health expenses incurred in respect of nursing home fees.


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