Tax Credits for Insurance Premiums

Tags: medical insurance, PHI policies, dental insurance

Tax relief is due at the standard rate of tax (20%) for rent paid in the tax years 2006 to 2011 subject to the following upper limits:

		*2006*	*2007*	*08/ 09 / 10*	*2011*
Single Under 55	Threshold	1,650	1,800	2,000	1,600
Single Under 55	Maximum Rent Allowance	330	360	400	320
Single Over 55	Threshold	3,300	3,600	4,000	3,200
Single Over 55	Maximum Rent Allowance	660	720	800	640
Married/Widowed Under 55	Threshold	3,300	3,600	4,000	3,200
Married/Widowed Under 55	Maximum Rent Allowance	660	720	800	640
Married/Widowed Over 55	Threshold	6,600	7,200	8,000	6,400
Married/Widowed Over 55	Maximum Rent Allowance	1,320	1,440	1,600	1,280

Where a few people share a rented property each individual is entitled to make a claim for tax relief subject to above limits. A claim has to be made to the tax office for the tax relief and you will need your landlords tax reference if available in support of your claim.

It has been stated that this relief will be phased out by 2017 by reducing the annual credit for each of the years 2012 to 2017 inclusive. However if you were not renting prior to the 8th December 2010 or were not entitled to make a claim for rent relief for 2010 then you cannot claim rental tax relief for 2011 or any future years.

Tax Credits for Insurance Premiums

There is no tax relief for life insurance policies. However tax relief is available for certain medical related insurance type policies as listed below. For life assurance it is still possible to obtain tax relief for premiums paid if the cover is part of a pension policy.

Medical Insurance Premiums

Tax Relief at Source (TRS)
Tax relief for medical insurance premiums paid to authorised insurers is granted at source (TRS) by the provider of the medical insurance e.g. VHI, Quinn Health Insurance or Vivas. Subscribers will pay a reduced premium (80% of the gross amount) to the authorised medical insurer. This reduction is the same as giving tax relief at the standard rate of tax (20%).

TAX SAVING TIP
Where an employer pays your medical insurance on your behalf you will be taxed on the premium paid as a benefitinkind through your salary under PAYE. However you are entitled to claim personal tax relief on the premium paid at a rate of 20%. This must be claimed through your local tax office.

Example
Mr Smarts annual medical insurance costs 1,000. His employer pays this on his behalf.

Tax Due As BenefitInKind	*410 Collected through PAYE
Tax Relief On Premium at 20%	200 Must be claimed from Tax Office

*Assume tax payable at 41% and ignoring PRSI

Dental Insurance tax relief
From tax year 2004 onwards tax relief at the standard rate of tax will apply to premiums paid for dental insurance to an authorised insurer for nonroutine dental treatment where the policy is for dental insurance only.

Tax Credits & Reliefs >> Tax Credits for Insurance Premiums

Tax Credits for Insurance Premiums

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