Michael McGrath (Cork South Central, Fianna Fail)
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As the Deputy will be aware, with effect from 1 January 2009, income tax relief in respect of qualifying health expenses, with the exception of relief in respect of nursing home expenditure, has been granted at the standard rate of tax. Prior to that date, tax relief was available at the taxpayer's marginal rate of income tax. The decision to standardise health expenses relief was to widen the tax base and bring the rate at which relief was granted in line with the majority of tax expenditures. In addition, the standard rating of the relief has made the tax system fairer, in that all beneficiaries may receive tax relief at the same rate, currently 20 per cent.

The rationale behind income tax relief for health expenses is broadly intended to provide assistance for significant or exceptional health expenses. Generally expenses of a routine nature are ineligible for the relief. Routine dental treatment which includes the provision and repairing of artificial teeth or dentures is excluded from the relief. The exclusion of expenses incurred in respect of routine dental treatment has been in place since the relief’s inception in 1967 and I am satisfied that the legislation as drafted and implemented provides sufficient flexibility for expenses that should qualify. There are no plans to change these arrangements at this time.

In my view, the availability of tax relief at the standard rate of income tax for health expenses, including qualifying dental expenses is sufficiently calibrated and is the most appropriate use of fiscal resources. As such, I have no plans to enhance the relief.

Further guidance on claiming tax relief for qualifying health expenses can be found in section 13 of Tax and Duty Manual Part 15-01-12, which can be accessed using the following link:

www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-15/15-01-12.pdf.