Written answers

Wednesday, 30 April 2014

Photo of Clare DalyClare Daly (Dublin North, Socialist Party)
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91. To ask the Minister for Finance the reason there are no flat rate expenses for special needs assistants even though this rate exists for many other workers. [19372/14]

Photo of Michael NoonanMichael Noonan (Limerick City, Fine Gael)
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In relation to flat rate expenses, the position is that tax law provides that employees and office holders may claim a tax deduction in respect of:

(a) the cost of travelling expenses necessarily incurred in the performance of the duties of their employment or office; and

(b) the cost of other expenses incurred wholly, exclusively and necessarily in the performance of the duties of their employment or office.

As regards an expenses claim under (b) above, I understand from the Revenue Commissioners that, in strictness, each employee or office holder should submit his or her individual expenses claim to Revenue.  However, by way of long standing practice stretching back over 40 years, the expenses deduction due for certain categories of employee are, for administrative ease, agreed between Revenue and the relevant representative bodies. These agreed rates of expenses are granted to individuals in their determination of tax credits for PAYE purposes and have become known as "flat rate expenses".

Therefore, some employees obtain their statutory tax deduction in respect of expenses via the administrative "flat rate expenses" regime whilst others may obtain their tax deduction on foot of an individual claim submitted to the Revenue Commissioners in accordance with the relevant tax legislation.  In order to apply for the flat rate expenses regime, the relevant representative body should contact the Revenue Commissioners.

Photo of Michael McGrathMichael McGrath (Cork South Central, Fianna Fail)
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92. To ask the Minister for Finance in circumstances where the owner has not occupied the property for the past 12 months but previously did occupy it for a long period of time, if the exemption to capital gains tax on the sale of the person's principal private residence applies even if the property has been rented out at market value during that 12 month period. [19391/14]

Photo of Michael NoonanMichael Noonan (Limerick City, Fine Gael)
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I am informed by the Revenue Commissioners that full exemption from capital gains tax applies to the sale of an individual's only or main residence where the property has been occupied as such throughout the individual's entire period of ownership. Full exemption is also applicable where the property has been occupied as the individual's only or main residence throughout the entire period of ownership apart from the last twelve month period of ownership, even if the property is let during that twelve month period.

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