Section 470 Relief for insurance against expenses of illness
|
(1) In this section-
"appropriate percentage", in relation to a year of assessment, means a percentage equal to the standard rate of tax for that year;
["authorised insurer" means-
(a) any undertaking entered in the Register of Health Benefits Undertakings, lawfully carrying on such business of medical insurance referred to in paragraph (a) of the definition of "relevant contract" but, in relation to an individual, also means any undertaking authorised pursuant to Council Directive No. 73/239/EEC of 24 July 1973 (OJ No. L228, 16.8.1973, p. 3), Council Directive No. 88/357/EEC of 22 June 1988 (OJ No. L172, 4.7.1988, p. 1), and Council Directive No. 92/49/EEC of 18 June 1992 (OJ No. L228, 11.8.1992, p. 1), where such a contract was effected with the individual when the individual was not resident in the State but was resident in another Member State of the European Communities, or
(b)(i) any undertaking standing authorised under-
(I) the European Communities (Non-Life Insurance) Framework Regulations 1994 (S.I. No. 359 of 1994),
(II) the European Communities (Non-Life Insurance) Regulations 1976 (S.I. No. 115 of 1976), or
(III) the European Communities (Non-Life Insurance) (Amendment) (No. 2) Regulations 1991 (S.I. No. 142 of 1991),
or
(ii) any undertaking authorised by the authority charged by law with the duty of supervising the activities of insurance undertakings in a Member State of the European Communities other than the State in accordance with Article 6 of Council Directive No. 73/239/EEC of 24 July 1973 as inserted by Article 4 of Council Directive No. 92/49/EEC of 18 June 1992,
lawfully carrying on such business of dental insurance referred to in paragraph (b) of the definition of "relevant contract";]1
["relevant contract" means a contract of insurance which, in relation to an individual, the spouse of the individual, or the children or other dependants of the individual or of the spouse of the individual, provides specifically, whether in conjuction with other benefits or not, for the reimbursement or discharge, in whole or in part, of-
(a) actual health expenses (within the meaning of section 469), being a contract of medical insurance, or
(b) dental expenses other than expenses in respect of routine dental treatment (within the meaning of section 469), being a contract of dental insurance;]2
["relievable amount", in relation to a payment to an authorised insurer under a relevant contract, means-
(a) where the payment covers no benefits other than such reimbursement or discharge as is referred to in the definition of "relevant contract", an amount equal to the full amount of the payment [reduced by the amount of credit due (if any) under section 470B(4)]]3, or
(b) where the payment covers benefits other than such reimbursement or discharge as is referred to in that definition, an amount equal to so much of the payment as is [reduced by the amount of credit due (if any) under section 470B(4)]4.]5
Amendments
1 Definition of "authorised insurer" substituted by Finance Act 2004 section 11(a). The revised definition includes dental insurance providers.
2 Definition of "relevant contract" substituted by Finance Act 2004 section 11(b). The revised definition includes dental insurance contracts.
3 Inserted by Health Insurance (Miscellaneous Provisions) Act 2009 section 21(a).
4 Inserted by Health Insurance (Miscellaneous Provisions) Act 2009 section 21(b).
5 Definition of "relievable amount" inserted by Finance Act 2001 section 19(1)(a)(ii) for 2001 and later tax years.
Is there a tax credit available for expenditure on medical insurance?
(1) In computing your income tax liability for a tax year, you are entitled to a tax credit equivalent to the appropriate percentage of the amount (relievable amount) of an insurance premium to an authorised insurer (for example, the VHI or BUPA) und...
(2) Subject to subsection (3), where for a year of assessment-
(a) an individual, or
(b) if the individual is a married person assessed to tax in accordance with section 1017, the individual's spouse,
has made a payment to an authorised insurer under a relevant contract, then, the income tax to be charged on the individual for the year of assessment, other than in accordance with section 16(2), shall be reduced by an amount which is the lesser of-
(i) an amount equal to the appropriate percentage of the relievable amount in relation to the payment, and
(ii) the amount which reduces that income tax to nil.
Amendments
Subs (2) substituted by Finance Act 2001 section 19(1)(b) for 2001 and later tax years.
(3)(a) Where, on or after 6 April 2001, an individual makes a payment to an authorised insurer in respect of a premium due on or after that date under a relevant contract for which relief is due under subsection (2), the individual shall be entitled to deduct and retain out of it an amount equal to the appropriate percentage, for the year of assessment in which the payment is due, of the relievable amount in relation to the payment.
(b) An authorised insurer to which a payment referred to in paragraph (a) is made-
(i) shall accept the amount paid after deduction in discharge of the individual's liability to the same extent as if the deduction had not been made, and
(ii) may, on making a claim in accordance with regulations, recover from the Revenue Commissioners an amount equal to the amount deducted.
Amendments
Subs (3) substituted by Finance Act 2001 section 19(1)(b) for 2001 and later tax years.
(4) Where relief is given under this section, no relief or deduction under any other provision of the Income Tax Acts shall be given or allowed in respect of the payment or part of a payment, as the case may be.
(5)(a) The Revenue Commissioners shall make regulations providing generally as to administration of this section and those regulations may, in particular and without prejudice to the generality of the foregoing, include provision-
(i) that a claim under subsection (3)(b)(ii) by an authorised insurer, which has registered with the Revenue Commissioners for the purposes of making such a claim, shall-
(I) be made in such form and manner,
(II) be made at such time, and
(III) be accompanied by such documents,
as provided for in the regulations;
(ii) for the making of annual information returns by authorised insurers, in such form (including electronic form) and manner as may be prescribed, and containing specified details in relation to-
(I) each individual making payments to such insurers under relevant contracts in a year of assessment,
(II) the total amount of premiums paid under a relevant contract by that individual in the year of assessment, and
(III) the total amount deducted by that individual under subsection (3)(a);
and
(iii) for the furnishing of information to the Revenue Commissioners for the purposes of the regulations.
(b) Every regulation made under this section shall be laid before Dáil Éireann as soon as may be after it is made and, if a resolution annulling the regulation is passed by Dáil Éireann within the next 21 days on which Dáil Éireann has sat after the regulation is laid before it, the regulation shall be annulled accordingly, but without prejudice to the validity of anything previously done thereunder.
Amendments
Subs (5) inserted by Finance Act 2001 section 19(1)(c) for 2001 and later tax years.
(6)(a) Where any amount is paid to an authorised insurer by the Revenue Commissioners as an amount recoverable by virtue of subsection (3)(b)(ii) but is an amount to which that authorised insurer is not entitled, that amount shall be repaid by the authorised insurer.
(b) There shall be made such assessments, adjustments or set-offs as may be required for securing repayment of the amount referred to in paragraph (a) and the provisions of this Act relating to the assessment, collection and recovery of income tax shall, in so far as they are applicable and with necessary modification, apply in relation to the recovery of such amount.
Amendments
Subs (6) inserted by Finance Act 2001 section 19(1)(c) for 2001 and later tax years.
