Paul Murphy (Dublin South West, RISE)
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25. To ask the Minister for Finance if tax relief (details supplied) for taking care of an incapacitated individual at the same time as tax relief on employing a home carer will be applied to the previous years when the legislation was the same; if persons that would have qualified for both tax reliefs will be contacted to make them aware of this e-Brief and the consequences for their entitlements. [34722/22]

Paschal Donohoe (Dublin Central, Fine Gael)
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While the particular tax relief that may be available will depend on the specific facts and circumstances of a case, in broad terms, where an individual is responsible for the care of an incapacitated individual, the reliefs available include:

1. relief where the individual employs a carer to look after the incapacitated person (provided for under section 467 TCA 1997); and

2. relief where the individual looks after the incapacitated person themselves (the home carer tax credit as provided for under section 466A).

Some of the other reliefs which may be available where an individual is responsible for an incapacitated person include:

1. the incapacitated child tax credit (provided for under section 465 TCA 1997); and

2. the dependent person tax credit (provided for under section 466 TCA 1997).

With regard to employing a carer to look after an incapacitated individual, I am advised by Revenue that eBrief No. 128/22 relates to Tax and Duty Manual Part 15-01-20, and has been updated to provide further clarity on the interaction between the tax relief available to an individual who employs a carer to care for an incapacitated individual, and the incapacitated child and dependent relative tax credits.

It should be noted that the updated guidance does not refer to the home carer tax credit nor does it reflect a change in the existing statutory position.

Section 467 TCA 1997 provides for tax relief where an individual incurs costs in employing a person to take care of an incapacitated individual. The incapacitated individual can be the claimant themselves, or the claimant’s spouse or relative. The tax relief is given by way of a deduction and is equal to the lower of the cost incurred and €75,000.

The incapacitated child tax credit of €3,300, as provided for in section 465 TCA 1997, is available to an individual who proves that he or she has living, at any time during the year of assessment, a child who:

1. if under the age of 18, is permanently incapacitated by reason of mental or physical infirmity to such an extent that there is a reasonable expectation that the child would be incapacitated from maintaining him or herself if they were over the age of 18; or

2. if over the age of 18, is permanently incapacitated by reason of mental or physical infirmity from maintaining him or herself and had become so incapacitated either before attaining the age of 21 or whilst in full-time instruction at any university, college school or other educational establishment.

The dependent relative tax credit of €245, as provided for in section 466 TCA 1997, is available to an individual who maintains, at his or her own expense, a relative who is unable to maintain him or herself or a widowed parent. The credit is also available where an individual depends on his or her own child, due to infirmity, and resides with and maintains the child at his or her own expense. Eligibility for the dependent relative credit is subject to the requirement that the relative, child or widowed parent’s income for the year does not exceed a specified amount provided for in the legislation.

Where the individual employs a carer to look after an incapacitated person and also qualifies for either the incapacitated child tax credit or the dependent relative credit in respect of that same incapacitated person, he or she may claim relief under both section 467 and section 465 and/or 466 TCA 1997 as appropriate.

However, it should be noted that tax relief under section 467 TCA 1997 cannot be claimed where the individual employed to take care of an incapacitated person is the same individual in respect of whom the claimant receives either the incapacitated child or dependent relative tax credits.

The Deputy also refers to the home carer tax credit in his Question.  The home carer tax credit of €1,600, as provided for in section 466A TCA 1997, is available to jointly assessed married couples or civil partners where one spouse or civil partner stays at home to take care of a dependent person. The carer may earn up to €7,200 per year without affecting the value of the credit awarded, however once the carer’s income exceeds this amount the value of the credit will be impacted.

Where an individual employs a carer to take care of an incapacitated individual it is unlikely that he or she will also be eligible to claim the home carer tax credit as it is a requirement, under section 466A TCA 1997, for the individual to care for the dependent person himself or herself in order to qualify for the home carer credit. The facts and circumstances of each individual case determine the entitlement to tax relief however, additional tax relief will generally not be due in such a scenario. 

In relation to the issue of making taxpayers aware of their tax credit entitlements, I am advised that Revenue pro-actively corresponds with different cohorts of taxpayers to publicise the range of credits which they may be entitled to claim.  For example, Revenue is currently in the process of writing to all PAYE taxpayers whose final tax position for the years 2019, 2020 and 2021 is not yet balanced.  This communications process may also prompt individual taxpayers to claim as yet unclaimed tax credits. 

Detailed guidance material on each of these credits and reliefs is available on Revenue’s website and can be found at the following links:

- www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-15/15-01-20.pdf

- www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-15/15-01-05.pdf

- www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-15/15-01-27.pdf

- www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-15/15-01-29.pdf

Any individual who requires assistance in determining the full range of tax credits and reliefs which he or she may be entitled to claim, should contact Revenue through MyAccount -

www.revenue.ie/en/online-services/support/data-and-security/security/revenue.ie-and-myaccount.aspx

Matt Carthy (Cavan-Monaghan, Sinn Fein)
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26. To ask the Minister for Finance the number of instances since 2017 in which a gift clawback has arisen as a result of farmer who has inherited or been gifted land and has placed such land jointly in the name of their spouse; the average tax intake as a result; and if he will make a statement on the matter. [34732/22]

Paschal Donohoe (Dublin Central, Fine Gael)
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Assuming this relates to a clawback of agricultural relief claimed under Section 89 of the Capital Acquisitions Tax Consolidation Act (CATCA) 2003, on an inheritance or gift of land, I am advised by Revenue that it is not possible to furnish precise figures of the number of instances in which a gift clawback has arisen in these particular circumstances.

Section 89 provides for agricultural relief to be applied on the receipt of a gift or inheritance comprising agricultural property.  The relief operates by charging Capital Acquisitions Tax (CAT) on a reduced market value of the particular agricultural property, which takes the form of a 90% reduction in the taxable value of gifted or inherited agricultural property. 

However the Relief can be withdrawn or clawed back if any part of the property (other than crops, trees and underwood) is disposed of or compulsorily acquired within six years of receiving a gift or inheritance, and it is not replaced with other agricultural property.

In addition, where the date of the gift or inheritance and the valuation date are on or after 1 January 2015, relief may be withdrawn if the claimant no longer farms the property for at least 50% of their working hours, or does not farm the property on a commercial basis for at least six years from that date.

As agricultural relief may be clawed back where there is a disposal of any part of the agricultural property, relief could be clawed back where the claimant disposes of any part of his or her beneficial interest in the land to his or her spouse.  However, it would not be clawed back where the land is simply placed jointly in the name of a spouse.

Revenue has published extensive guidance on the operation of Agricultural relief in respect of CAT on the Revenue website at  www.revenue.ie/en/gains-gifts-and-inheritance/cat-reliefs/agricultural-relief/index.aspx, and also operates a CAT Helpline for anyone seeking further clarification/guidance. Contact details for the CAT Helpline are available on the Revenue website at

www.revenue.ie/en/contact-us/customer-service-contact/national-capital-acquisitions-tax-cat-unit.aspx

Matt Carthy (Cavan-Monaghan, Sinn Fein)
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27. To ask the Minister for Finance further to Parliamentary Questions Nos. 370 and 371 of 14 June 2022, the total value of income deferred in relation to the 90 taxpayer units that declared exempt income from the leasing of agricultural land and also claimed consanguinity relief during 2019; if he intends to repeat the 2019 analysis on the basis of any other year; and if he will make a statement on the matter. [34733/22]

Paschal Donohoe (Dublin Central, Fine Gael)
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I am advised by Revenue that the amount of income from the leasing of farmland that was exempted from taxation in 2019 under Section 664 of the Taxes Consolidation Act 1997, by taxpayers who also claimed consanguinity relief in the same year, was €0.9m. Based on the available data, it is not possible to determine if these claims relate to the same land.

I am further advised that analysis of income tax returns by Revenue in relation to 2020 is ongoing.

Matt Carthy (Cavan-Monaghan, Sinn Fein)
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28. To ask the Minister for Finance the specific tax reliefs available to farmers which are due to expire in 2022/2023; and if he will make a statement on the matter. [34734/22]

Paschal Donohoe (Dublin Central, Fine Gael)
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The following table lists the  tax reliefs specific to the farming sector which are due to expire in either 2022 or 2023, including the relevant legislative provision and sunset date.

Five of these reliefs are due to expire at 31 December 2022. As each relief is categorised as a State Aid, extending them requires European Commission approval under the Agricultural Block Exemption Regulation (ABER). A new ABER is expected to be in place by the time of Budget 2023.

Any extension of the reliefs beyond their current sunset dates will fall to be considered by Government as part of the Budget and Finance Bill process.