Patrick O'Donovan (Limerick, Fine Gael)
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265. To ask the Minister for Finance if consideration has been given to the provision of tax relief to families where one of the parents chooses to stay at home to care for children, in an effort to meet increased child care costs; and if he will make a statement on the matter. [11499/15]

Michael Noonan (Limerick City, Fine Gael)
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When the system of individualisation was introduced in the tax code in 1999, a home carer allowance was also introduced to compensate those who chose to stay at home to care for children rather than participate in the labour market.

The Home Carer Tax Credit can be claimed by a jointly assessed couple in a marriage or civil partnership, where one spouse or civil partner is the Home Carer and cares for one or more dependent persons. It is currently worth €810 and in effect it shelters €4,050 from income tax.

Additionally, jointly assessed couples can transfer €9,000 of their individual standard rate band to their spouse or civil partner to suit their circumstances. This allows married one earners couples to pay a maximum rate of 20% income tax on earnings up to €42,800. This was increased from €41,800 in Budget 2015.

It would be inappropriate for me to become involved in speculation on this matter so far in advance of the Budget, which is over seven months away. However, as part of the normal budgetary preparations, my officials will be examining potential options for changes to the tax system for my consideration as part of the overall Budget package.