Irish Revenue Issues Guidance On Age-Related Tax Credits

by Jason Gorringe, Tax-News.com, London

31 August 2009

The Health Insurance (Miscellaneous Provisions) Act 2009 introduced, by way of an amendment to the Taxes Consolidation Act 1997 (insertion of section 470B), a new age-related tax credit in respect of health insurance premiums paid to authorised insurers under relevant contracts renewed or entered into between January 1, 2009, and December 31, 2011, for insured persons aged 50 years or over on the date the contract was renewed or entered into, as the case may be.

The amount of the credit depends on the age of the insured person. In the case of an insured person:

  • Aged 50 years and over but less than 60 years on the date the contract is renewed or entered into, the tax credit is EUR200;
  • Aged 60 years and over but less than 70 years on the date the contract is renewed or entered into, the tax credit is EUR500;
  • Aged 70 years and over but less than 80 years on the date the contract is renewed or entered into, the tax credit is EUR950; and
  • Aged 80 years and over on the date the contract is renewed or entered into, the tax credit is EUR1,175.

The Health Insurance (Miscellaneous Provisions) Bill 2008 also amended the way in which the standard-rated tax credit for health insurance premiums is to be calculated. The standard-rated tax credit will be calculated net of any age-related tax credit due.

The notice applies to premiums paid by employers in respect of health insurance contracts renewed or entered into on or after the passing of the Health Insurance (Miscellaneous Provisions) Act 2009 (July 19, 2009) and before January 1, 2012.

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