Philip and Edel are in their early 50s and live in the Dublin suburbs. Philip changed job last year and now has an annual salary of €150,000.
Philip was not part of the pension scheme in his previous job so currently maximises his personal pension contributions to the 30 per cent limit. Edel works part time as a receptionist and earns €18,000.
Edel's elderly mother lives in a nursing home. Philip and Edel pay €21,000 towards the cost of this, of which €18,000 qualifies for tax relief. They claim the dependent relative tax credit and the qualifying medical expenses for the nursing home. They are concerned that the Minister may reduce the tax relief they can receive on this expense.
They both hope that there will be an increase in personal tax credits and the standard tax-rate band for married couples.
Philip has a Special Savings Investment Account (SSIA) which is due to mature in July 2006. They hope that the Minister introduces a scheme where he can transfer the funds from his SSIA to a pension plan in a tax efficient manner.
Monthly Summary
Gross Salary 2005 €14,000
Taxable income €8,750
Income tax €2,161
PRSI/Levy €349
Net cash €5,990
Deductions (as % of gross salary) €17.93
Child benefit 0
