Tax relief on medical expenses

[Decani]

We put a claim in at the end of January and have received a settlement. The question I have regards the amount of relief I was given.

Our claim (after excess) came to €1232. I got a tax credit of €247. I pay tax at the higher rate and my understanding is that I should get 42%. €247 is 20% of €1232. Or have I got it all wrong?

 

[ClubMan]

Your standard rate band was probably increased by 247 as well meaning that these cancel each other out and you pay no tax on the 1232. See this topic for an explanation of how such relief is granted by way of a combination of a standard rated credit and an increased in the standard rate band. Does that make sense?