Thursday, 7 November 2013
Department of Finance
81. To ask the Minister for Finance if he will provide a breakdown of the tax yield from his plan to restrict tax relief on private medical insurance policies by income band; and if he will make a statement on the matter. [47613/13]
An upper ceiling on the amount of medical insurance premiums that will qualify for tax relief, of €1,000 per adult and €500 per child was introduced in the Budget. The yield from this measure is estimated at €94 million in 2014 and €127 million in a full year. The position is that income tax relief is generally provided on contributions to private health insurance by way of the Tax Relief at Source system (TRS) at 20%, regardless of the whether the individual has an income tax liability or not. Therefore, information on the income of insured individuals is not necessary for the administration of the granting of tax relief at source. I am advised by the Revenue Commissioners that a breakdown of the impact of the Budget measure by range of income could not be compiled without requiring the health insurers to provide income-based information in their annual returns, followed by carrying out a significant development of the Revenue Commissioners’ TRS computer system.