€125 medical expenses limit abolished for 2007 onwards

[bazermc]

A report stage amendment to the Finance Bill 2007 has abolished the medical expenses limit of €125

From e&y website:

Medical expenses
In his 2007 Budget speech the Minister announced the introduction of measures aimed at ensuring that taxpayers could more readily avail of tax reliefs to which they were entitled. As part of this process the Bill contains simplification measures in connection with the tax relief available for medical expenses.

With effect for 2007 the aggregate threshold above which medical expenses qualify for tax relief is being reduced from €250 to €125. The alternative ‘per person’ limit of €125 has been removed. In addition, the Bill extends the tax relief to payments of medical expenses on behalf of any persons. Previously relief was only available in respect of personal expenses and expenses of dependants as defined in the tax code.


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[Newby]

The alternative ‘per person’ limit of €125 has been removed.

I always thought that the medical expenses limit was rather unfair myself. I'm glad to see the back of it (or some of it at least). It's a pity they decided to keep the limit when you are jointly claiming. That seems to be just penalising families!

 

[circle]

How is it penalising families? With these changes, there is an excess of €125 regardless of how many people's medical expenses the form filler is claiming for. Surely that puts a single person who is claiming for just their own expenses at a disadvantage to someone who is claiming for two or more people's expenses?

 

[DrMoriarty]

And paying for them!

 

[Guest127]

How is it penalising families? With these changes, there is an excess of €125 regardless of how many people's medical expenses the form filler is claiming for. Surely that puts a single person who is claiming for just their own expenses at a disadvantage to someone who is claiming for two or more people's expenses?

???? what disadvantage? whatever a single persons pays in medical expenses they claim back. with a couple they have to spend €125 before they have any claim. whatever disadvantage there is is weighted against a couple. no real surprise there then.

 

[sherib]

Originally Posted by cuchulainn
whatever a single persons pays in medical expenses they claim back. with a couple they have to spend €125

I don't understand this debate - is it not the case that now, for everyone, a single person or a family of ten, the first €125 of a medical claim is dis-allowed? Whereas previously the first €125 for a single person and €250 for a couple/family had to be deducted from the claim.

So, there is no disadvantage for a couple or a family - if anything it is for a single person since the €125 is not per person as before (with a max of €250). IMO Circle's assessment is the correct one.

 

[ClubMan]

I don't understand this debate - is it not the case that now, for everyone, a single person or a family of ten, the first €125 of a medical claim is dis-allowed? Whereas previously the first €125 for a single person and €250 for a couple/family had to be deducted from the claim.

Yes - that's correct.

So, there is no disadvantage for a couple or a family - if anything it is for a single person since the €125 is not per person as before (with a max of €250). IMO Circle's assessment is the correct one.

I agree.

 

[Berni]

It seems they are going one better & removing the limits altogether
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[FONT=Verdana,Helvetica,sans-serif]At present, there are two minimum thresholds for claiming tax relief on medical expenses, €125 for one person or €250 for more than one person. The Bill provides that both thresholds will be removed.[/FONT]

 

[collieb]

I wonder when will this affect actual claims? I have some expenses to claim - so am I better off waiting until the bill is signed through to claim them?

 

[Berni]

The new rules will apply to expenses incurred in 2007, so if yours are from previous years, it wont affect you.