Finance Act 2001: Health Expenses Relief

Introduction

Section 8 Finance Act 2001 amends section 469 TCA 1997 and gives effect to the widening of tax relief in respect of un-reimbursed health expenses. The changes apply for the year of assessment 2001 and subsequent years of assessment.

Claims in respect of Dependent Relatives

At present, subject to a de minimis of ₤100 per individual and ₤200 per group of dependants, an individual is entitled to claim relief in respect of un-reimbursed health expenses incurred in respect of himself/herself, his/her spouse, dependent children and also dependent relatives who are relatives for whom the taxpayer is in receipt of what is known as the Dependent Relative Allowance. This latter allowance is subject to an income qualification.

Section 8 amends the definition of dependant for the purposes of health expenses to specifically include categories of persons covered by the dependent relative allowance but without the income qualifications. In other words, a taxpayer will be able to claim health expenses relief directly, in respect of the designated relatives, without first having to qualify for the Dependent Relative Allowance.

Educational psychological assessments and speech and language therapy services for children

Relief will also apply in respect of expenses incurred on educational psychological assessments and speech and language therapy services for children.

For the purposes of section 469: “educational psychologist” means a person who is entered on a register maintained by the Minister for Education and Science in accordance with guidelines set down by that Minister with the consent of the Minister for Finance.

“speech and language therapist” means a person approved by the Minister for Heath and Children in accordance with guidelines set down by that Minister with the consent of the Minister for Finance.

Unlike educational psychologists, speech and language therapists will not be included on a register but will instead be approved by the Minister for Health and Children.

Routine maternity care

The present exclusion from relief of expenses for routine maternity care is abolished.