Seán Fleming (Laois-Offaly, Fianna Fail)
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To ask the Minister for Finance the reduction in tax expenditure that would be achieved from abolishing tax relief for medical and dental insurance; and if he will make a statement on the matter. [49268/12]

Michael Noonan (Limerick City, Fine Gael)
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It should be noted that relief for qualifying dental insurance policies is allowed as part of the general relief for medical insurance since 2004 and is not identified separately for statistical purposes. On that basis, I am informed by the Revenue Commissioners that the cost to the Exchequer of tax relief allowed through the tax relief at source (TRS) system for medical insurance premia in 2011 is provisionally estimated at €404 million. The cost figure above does not include a further cost to the Exchequer of €333 million of the age-related tax relief at source, which is established by the Health Insurance (Miscellaneous Provisions) Act 2009. The cost of the age-related tax credit is offset by a Stamp Duty on health insurance policies. The tax credit and levy are part of an interim scheme of risk equalisation which was introduced in order to provide direct support to community rating in the private health insurance market and is intended to be Revenue neutral over its duration. It expires on 31 December 2012 and will be replaced from 1 January 2013 by a permanent risk equalisation scheme, provided for in the recently published Health Insurance (Amendment) Bill 2012.

Seán Fleming (Laois-Offaly, Fianna Fail)
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To ask the Minister for Finance the reduction in tax expenditure that would be achieved by phasing out rent relief over three years rather than by 2017 as currently proposed; and if he will make a statement on the matter. [49269/12]

Michael Noonan (Limerick City, Fine Gael)
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Section 473 of the Taxes Consolidation Act, 1997 provides tax relief at the standard rate to individuals who pay for private rented accommodation that is used as their sole or main residence. The level of rent qualifying for rent relief depends on an individual’s marital status and age. In Budget 2011, it was announced that rent relief was being withdrawn on a phased basis. No new claimants were allowed from 7 December 2010 but existing claimants will continue to receive the relief, on a reducing basis, with a complete cessation of the relief from 2018. This is in line with the schedule proposed for the withdrawal of mortgage interest relief. The scheduled withdrawal of rent relief is set out in the following table.

To phase out the remaining 60% of the relief over the next 3 years i.e. 2013 – 2015, would result in the following yields based on the 2010 costs of the scheme. A standard level of reduction of 20% per annum on the remaining maximum levels of relief is assumed.