CHILDREN:Child benefit should be taxable income.
The taxing of child benefit should be benchmarked against alternatives, including means testing, to ascertain the most effective method of achieving the aims and
If taxation is applied, we recommend the introduction of a child tax credit to offset the additional tax payable in respect of child benefit for those in the lower half of the income scale.
The exemption of foster care payments from income tax should continue.
The one-parent family tax credit should continue and the credit should be allocated to the principal carer only and in a similar way to the current arrangements for child benefit.
The home carer tax credit should continue.
The widowed parent tax credit should continue.
The capital allowances for childcare facilities should be discontinued.
The income tax exemption for childcare service providers should be discontinued.
The exemption of employer-provided childcare from benefit-in-kind charge should be discontinued
HOUSING
Mortgage interest relief should be continued in the case of first-time buyers and discontinued for those who are outside this category. The current step down arrangements for first-time buyers regarding the rate at which relief is given should continue to apply.
Income tax relief for rent paid for private rented accommodation should be discontinued.
The capital gains tax exemption on the disposal of a principal private residence should be continued.
Income tax relief for service charges should be discontinued
The rent-a-room relief should be discontinued.
The capital gains tax and stamp duty exemptions on the disposal of site to a child should be discontinued
HEALTH
Medical insurance relief should be continued on a more limited basis.
Relief for health expenses should continue at the standard rate.
Once the Fair Deal system for nursing home care has been implemented, removal of the tax relief for nursing home expenses should be considered.
The range of treatments contained within the scope of the relief for health expenses should be subject to regular review.
Tax relief for contributions paid to permanent health benefit schemes should continue.
Tax relief for long-term care policies should be discontinued.
When direct expenditure support at the appropriate level is in place, the incapacitated child tax credit should be discontinued.
The allowance for employing a carer for an incapacitated individual should continue.
However, the rate of relief should be the same as that available under health expenses relief.
The dependent relative tax credit should be discontinued.
The entitlement to mortgage interest relief that is derived in relation to a principal private residence occupied by a dependent relative should continue.
A person should be able to avail of first-time buyer levels of relief once in respect of himself or herself and once in respect of a dependent relative who has not claimed for himself or herself.
The separate entitlement to CGT relief on the disposal of a principal private residence occupied by a dependent relative should be discontinued.
When direct expenditure support at the appropriate level is in place, the blind person's tax credit should be discontinued.
The arrangements for the scheme of accelerated capital allowances for palliative care units should be modified by the introduction of a termination date for the scheme.
The Disabled Drivers and Disabled Passengers Scheme should be modified in accordance with the recommendations of the 2002 Interdepartmental Review Group.