Written answers
Wednesday, 5 March 2025
Department of Finance
Tax Reliefs
Richard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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43. To ask the Minister for Finance if he will consider allowing individuals whose medical conditions require the use of extensive medical equipment to claim flat-rate relief for electricity, as those who use kidney dialysis machines currently do. [9957/25]
Paschal Donohoe (Dublin Central, Fine Gael)
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Section 469 of the Taxes Consolidation Act 1997 (TCA) provides for tax relief where an individual proves that he or she has incurred costs in respect of qualifying health expenses. Only "health expenses" incurred in the provision of “health care”, which has been carried out or advised by (in certain circumstances) a practitioner, will qualify for tax relief.Health care is defined as the “prevention, diagnosis, alleviation or treatment of an ailment, injury, infirmity, defect or disability”.
Health expenses are defined as “expenses in respect of the provision of health care” and may include, but are not limited to, the following:
- the services of a practitioner,
- diagnostic procedures carried out on the advice of a practitioner,
- maintenance or treatment necessarily incurred in connection with the services of a practitioner or diagnostic procedures carried out on the advice of a practitioner,
- drugs or medicines supplied on the prescription of a practitioner, and
- the supply, maintenance or repair of any medical, surgical, dental or nursing appliance used on the advice of a practitioner.
- registered in the register established under section 43 of the Medical Practitioners Act 2007,
- registered in the register established under section 26 of the Dentists Act, 1985, or,
- in relation to health care provided outside the State, entitled under the laws of the country in which the care is provided to practice medicine or dentistry there".
Furthermore, Revenue guidance sets out that relief may be allowed under the following headings for home dialysis kidney patients-
a) electricity;Rates for kidney dialysis patients are shown in Table B of Appendix 1 of the Revenue Tax and Duty Manual Part 15-01-12, linked below, and relief is calculated at the standard rate of income tax (20%). The rates are operated by Revenue on an administrative basis and are updated annually in line with the Consumer Price Index (CPI). The electricity rate shown is not applicable to other cases where a patient has a condition requiring the use of electrically powered medical equipment.Further guidance on tax relief for qualifying health expenses can be found in Revenue’s Tax and Duty Manual Part 15-01-12, which can be accessed at the following link: www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-15/15-01-12.pdf. Finally, I would note that the health expenses relief is a broadly availed of relief. In 2022, the cost of tax relief for health expenses (excluding nursing home expenses) was €201.1 million and it was availed of by 662,900 claimants.
b) laundry and protective clothing;
c) telephone; and
d) travelling.
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