Taxes Consolidation Act 1997 section 470

Relief for insurance against expenses of illness (medical insurance)

Section 470 provides income tax relief at the standard rate for premiums paid to authorised insurers under qualifying health insurance and dental insurance contracts.

• Relief applies at the standard rate (20%) on the portion of the premium qualifying for relief, capped at €1,000 per adult and €500 per child on the policy for contracts renewed or entered into on or after 16 October 2013.
• Since 6 April 2001, relief is given at source (TRS): the policyholder deducts tax at the standard rate from the premium due and pays the net amount to the insurer, who can recover the deducted amount from Revenue.
• Where an employer pays the premium, the employee is taxable on the gross premium as a benefit in kind but is entitled to claim the relief separately; the employer must account to Revenue for the tax relief obtained at source.
• No other income tax relief may be claimed in respect of the same premium payment, and Revenue must make regulations governing the administration of the scheme.