New Health Insurance Tax Credits

A new age-related tax credit in respect of health insurance premiums paid for insured persons aged 50 years or over, has been introduced. The amount of the credit depends on the age of the insured person detailed as follows;
· aged 50 years and over but less than 60 years on the date the contract is renewed or entered into, the tax credit is E200;
· aged 60 years and over but less than 70 years on the date the contract is renewed or entered into, the tax credit is E500;
· aged 70 years and over but less than 80 years on the date the contract is renewed or entered into, the tax credit is E950; and
· aged 80 years and over on the date the contract is renewed or entered into, the tax credit is E1,175.

The Health Insurance (Miscellaneous Provisions) Act 2009 also amended the way in which the standard-rated tax credit for health insurance premiums is to be calculated. The standard-rated tax credit will be calculated net of any age-related tax credit due.