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Income Tax QuestionTax Relief at the Higher Rate of Tax

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  • 31-07-2020 4:38pm
    #1
    BUDDYHOLLY1234
    Registered Users Posts: 18 ✭


    Can someone please explain the concept of "getting relief at my highest/marginal rate of tax? I know this is 40%

    What happens if I dont have income above the standard rate. Trying to get this around my head. If I have total income of €35000 does that mean 20% is all i can claim or is is 40% of 35000.


    An example of this is as follows in respect of relief for nursing home fee

    "You may claim income tax relief on nursing home expenses paid by you. You can claim this relief at your highest rate of tax if the nursing home provides 24-hour on-site nursing care".

    Could someone give an example of how this would be calculated over the year? Say pay 300 a week to a nursing home and rest on fair deal and on €35,000 but have savings.


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    #2
    Geuze
    Registered Users Posts: 13,105 ✭✭✭✭Geuze


    If you don't pay any tax at the higher rate, then you can't get tax relief at the higher rate.

    This is why, for example, pension conts make less sense to workers earning less than 36k.


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