Section 466A Home carer tax credit
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Amendments
Section 466A substituted by Finance Act 2001 section 2(3) and Schedule 1 para 1(m) for 2001 and later tax years.
(1) In this section-
"dependent person", in relation to a qualifying claimant, means a person (other than the spouse of the qualifying claimant) who, subject to subsection (3), resides with that qualifying claimant and who is-
(a) a child in respect of whom either the qualifying claimant or his or her spouse is, at any time in a year of assessment, in receipt of child benefit under [Part 4 of the Social Welfare Consolidation Act 2005,]1 or
(b) an individual who, at any time during a year of assessment, is of the age of 65 years or over, or
(c) an individual who is permanently incapacitated by reason of mental or physical infirmity;
"qualifying claimant", in relation to a year of assessment, means an individual-
(a) who is assessed to tax for that year in accordance with section 1017, and
(b) who, or whose spouse (in this section referred to as the "carer spouse") is engaged during that year in caring for one or more dependent persons;
"relative", in relation to a qualifying claimant, includes a relation by marriage and a person in respect of whom the qualifying claimant is or was the legal guardian.
Amendments
1 Substituted by Finance Act 2007 section 128 and Schedule 4 para 1(m)(i) as on and from 2 April 2007.
(2) Where for any year of assessment an individual proves that he or she is a qualifying claimant he or she shall be entitled to a tax credit (to be known as the "home carer tax credit") of [€900]1.
Amendments
1 Substituted by Finance Act 2008 section 3 and Schedule 1 para (g) for 2008 and later tax years.
(3) For the purposes of this section-
(a) a dependent person in relation to a qualifying claimant who is a relative of that claimant or the claimant's spouse shall be regarded as residing with the qualifying claimant if-
(i) the relative lives in close proximity to the qualifying claimant, and
(ii) a direct system of communication exists between the qualifying claimant's residence and the residence of the relative,
and
(b) a qualifying claimant and a relative shall be regarded as living in close proximity if they reside-
(i) next door in adjacent residences, or
(ii) on the same property, or
(iii) within 2 kilometres of each other.
(4) A qualifying claimant shall be entitled to only one tax credit under subsection (2) for any year of assessment irrespective of the number of dependent persons resident with the qualifying claimant in that year.
(5) A tax credit under this section in respect of a dependent person shall be granted to one and only one qualifying claimant being the person with whom that dependent person normally resides or, where subsection (3) applies, the person who, or whose spouse, normally cares for the dependent person.
(6)(a) Where in any year of assessment the carer spouse is entitled in his or her own right to [total income]1 exceeding [€5,080]2 in that year, the tax credit shall be reduced by one-half of the amount of that excess.
(b) For the purposes of paragraph (a), no account shall be taken of-
(i) any Carer's Benefit payable under [Chapter 14 of Part 2 of the Social Welfare Consolidation Act 2005,]3 or
(ii) any Carer's Allowance payable under [Chapter 8 of Part 3 of that Act.]4
Amendments
1 Substituted by Finance Act 2002 section 3 and Schedule 1 para 1(h)(ii) for 2002 and later tax years.
2 Substituted by Finance Act 2001 section 2(3) and Schedule 1 para (2)(i)(ii) for 2002 and later tax years.
3 Substituted by Finance Act 2007 section 128 and Schedule 4 para 1(m)(ii)(I) as on and from 2 April 2007.
4 Substituted by Finance Act 2007 section 128 and Schedule 4 para 1(m)(ii)(II) as on and from 2 April 2007.
(7)(a) Notwithstanding subsection (6) but subject to the other provisions of this section including this subsection, a tax credit may be granted for a year of assessment where the claimant was entitled to a tax credit under this section for the immediately preceding year of assessment.
(b) Where a tax credit is to be granted for a year of assessment by virtue of paragraph (a), it shall not exceed the amount of the tax credit granted in the immediately preceding year of assessment.
(c) A tax credit shall not be granted for a year of assessment by virtue of paragraph (a) if it was so granted for the immediately preceding year of assessment.
Can the home carer tax credit be claimed if a carer spouse takes up full time work?
(7) Notwithstanding the limit mentioned in (6), a carer spouse who takes up full time work may claim the home carer tax credit for the tax year in which the new job begins, provided he/she was entitled to the home carer tax credit for the previous ta...
(8) Where for any year of assessment a tax credit is granted to an individual under this section, the individual shall not also be entitled to the benefit of the provision contained in section 15(3) but the individual may elect by notice in writing to the inspector to have the benefit under the said section granted instead of the tax credit granted under this section.
