What tax relief are you getting on medical insurance?

Lifetime Community Rating (LCR) was introduced from 1 May 2015. From this date, anyone who takes out private health insurance at age 35 or over will pay a loading. It has been reported that 75,000 to 100,000 people signed up to new health insurance policies prior to 1 May 2015. Many of these individuals will be asking – what tax relief will I get on my health insurance? 

Tax relief is granted at 20% on the amount eligible for tax relief. 

The amount eligible for tax relief for adults is the lesser of €1,000 or the actual premium paid, per person. The amount eligible for tax relief for children for policies entered into or renewed -  

For the majority of individuals tax relief for medical insurance is granted at source (TRS) by the insurer. The insurer calculates the relief due, the individual pays the reduced premium to the insurer and no further contact is required with Revenue.

Where an employer pays the medical insurance for an employee the relief is exactly the same but the manner it is granted is slightly different. Contact your OSK Tax advisor Róisín Mc Daid with your queries and comments.

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