Joan Collins (Dublin South Central, People Before Profit Alliance)
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54. To ask the Minister for Finance the amount of money he expects will save with the reduction in tax credits for single parents; and the number of persons that will be affected by the reduction. [3112/14]

Michael Noonan (Limerick City, Fine Gael)
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The One-Parent Family Tax Credit has been replaced with a new Single Person Child Carer Tax Credit from 1 January 2014. The Single Person Child Carer Tax Credit will be of the same value, i.e. €1,650, as the existing One-Parent Family Tax Credit and will also carry the same entitlement to the extended standard rate tax band of €36,800 per annum. However, the new credit will be more targeted in that it will, in the first instance, only be available to the principal carer of the child.

When this measure was introduced in Budget 2014 it was estimated by the Revenue Commissioners that up to 15,400 individuals may be affected by the restriction of the restructured credit to the principal carer. However, as a result of an amendment which I brought forward at the Committee Stage of the Finance Bill which allows a primary carer to relinquish the credit such that it can be claimed by a non-primary carer, it is estimated that this number will reduce by 2,000 to 13,400. Ultimately however, the numbers affected will depend on the caring arrangements in place for each case.

Furthermore, at the time of the Budget it was estimated by the Revenue Commissioners that the expected yield from replacing the One-Parent Family Tax Credit with the Single Person Child Carer Tax Credit would be €18 million in 2014 and €25 million in a full year. The amendment introduced at Committee Stage of the Finance Bill had the effect of reducing this estimated yield to €16 million in 2014 and to €22.5 million in a full year.

Finian McGrath (Dublin North Central, Independent)
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55. To ask the Minister for Finance the position regarding tax credits in respect of a person (details supplied) in Dublin 5. [3174/14]

Michael Noonan (Limerick City, Fine Gael)
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As the Deputy is aware, the One-Parent Family Tax Credit has been replaced with a new Single Person Child Carer Tax Credit from 1 January 2014. The Single Person Child Carer Tax Credit is of the same value, i.e. €1,650, as the former One-Parent Family Tax Credit and also carries the same entitlement to the extended standard rate tax band of €36,800 per annum. However, the new credit will be more targeted in that it will, in the first instance, only be available to the principal carer of the child.

The person who receives the child benefit payment is being used as the initial indicator by the Revenue Commissioners to identify the individuals who are most likely to qualify for the new credit.  However, eligibility for the credit will in the first place be determined by who cares for the child for most of the year.

Notwithstanding the above, as a result of an amendment which I brought forward at Committee stage of the Finance Bill, a primary claimant who is entitled to the credit and who does not wish to avail of it can choose to surrender it.  A secondary claimant may then make a claim for the credit, provided that the qualifying child resides with him or her for not less than 100 days in the tax year.  Neither the primary claimant, nor the secondary claimant can be married, in a civil partnership or cohabiting.