Did you pay all of your health expenses in 2016?
I am still not clear if there is any reason why I should not defer claiming part of this expense until next year, when I expect to be able to get relief at the higher rate.
I am still not clear if there is any reason why I should not defer claiming part of this expense until next year, when I expect to be able to get relief at the higher rate.
Because the legislation does not allow it.
Otherwise we'd be at this all the time.
Well yes, but that is hardly reason enough to walk away from a valuable tax planning opportunity. If its not prohibited.
Because the rules, and presumably the underlying legislation, state that medical expenses are only claimable for income tax purposes in the years in which they are either incurred or paid.
The critical bit is, "where an individual for a year of assessment proves that in the year of assessment he or she defrayed health expenses... the income tax to be charged on the individual… for that year of assessment shall be reduced by...".
So the relief starts as a relief available against this year's tax for amounts paid this year.
S469(5) then broadens this out to allow you to elect to spread the expense across the years that the health care giving rise to the expenditure was provided.
What rules ?
I still do not see that this means you cannot claim 4 years in arrears.
Todays Indo, (not necessarily authoritative I know) suggests that you can. "you can claim back for up to the last four years and don't need to submit the original expenses when sending in the form" see here http://www.independent.ie/business/...w-to-claim-back-health-expenses-31091526.html
Can anyone refer me to the general 4 years provision. ?
"Revenue advises that there is a general right to repayment of tax provided for in … the Taxes Consolidation Act 1997, where a person has paid an amount of tax which is not due. However that right is subject to a statutory limit of four years from the end of the chargeable period to which the claim relates".
I can't find the basis in legislation for this.
I have a very large one off tax deductible expense in 2016, Its a nursing home bill.
40% of the expense will take me out of the higher rate tax band. Is it allowable to save 60% of the expense until next year when I expect to have more income at the higher rate.
Thanks for any advice
Surely (without having read all the links above) you can claim the expenses anytime you like (within the 4 year rule) but revenue will go back and amend the balancing statement of the year they were incurred. So if you incurred them in 2014 for example and don't submit the claim until 2017 then they won't allow them against 2017 tax but will go back and recalculate 2014 tax being the year the money was spent by you.
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