The Minister for Finance, Mr Michael Noonan TD, today (02 March) announced his intention to amend tax relief for medical insurance premiums for young adults from 1 May 2015 on foot of changes introduced under the Health Insurance (Amendment) Act 2014.
Making the announcement Minister Noonan said:
“My colleague, the Minister for Health, Leo Varadkar, brought forward legislation which provides that those aged between 21 and 25, can avail of reduced premium rates below the full adult price and that those aged between 18 and 20 can avail of a child’s premium price, should an insurer choose to offer such reduced premiums. The new provisions will come into effect from 1 May 2015.
The tax code allows tax relief on the first €1,000 of medical insurance premium (at 20%) in respect of an adult and on the first €500 of premium for a child or student in full-time education up to the age of 23 (where an insurer charges a child premium rate for such students).
With a view to ensuring consistency between health legislation and the tax code in relation to medical insurance and with the intention of keeping the tax relief for medical insurance premiums as simple as possible, I have decided to allow the full adult ceiling of €1,000, or the relevant premium where this is lower, for tax relief at 20%, for all adults aged 21 and over, regardless of whether they are availing of a reduced premium. I am retaining the child ceiling of €500 for those aged 18 to 20 that are continuing to avail of insurance at the child premium rates”.
The Revenue Commissioners have agreed to operate the changes on an administrative basis pending the provision of the underpinning legislation as part of the next Finance Bill. Therefore, the changes will be effective for all policies purchased or renewed (or which come into effect) on or after 1 May 2015.
Ends
02 March 2015
