Taxes Consolidation Act 1997 section 471

Relief for contributions to permanent health benefit schemes

Section 471 provides income tax relief for contributions made to permanent health benefit schemes.

• A permanent health benefit scheme is a Revenue-approved arrangement providing periodic payments to an individual in the event of loss or reduction of income due to ill health — also known as income continuance insurance.
• An individual who pays contributions to a bona fide permanent health benefit scheme in a tax year is entitled to a deduction from total income, capped at 10% of total income for that year.
• Where an employer pays the contributions on behalf of a director or employee and those contributions are taxed on the individual as a benefit in kind, the contributions are treated as having been paid by the individual and qualify for relief subject to the 10% cap.
• The relief is given as a deduction from total income, not as a tax credit.