Tax relief on health insurance is granted at source, but you can ask Revenue to review your tax situation. Photo: Getty
Q My wife and I are 88 years old with a joint income of about €43,000 a year, from UK pensions. We have health insurance with the VHI, which costs €5,000 a year. We get a discount of €400 on this, only 8pc. We are only allowed income of €36,000 tax-free, with anything over this taxed at 40pc. I know I can claim tax relief on other medical expenses like specialist fees and so on. Is it possible to claim back any of the cost of my private health insurance as medical expenses relief?
A The maximum tax relief on health insurance is the lower of either 20pc of the cost of the policy or €200 per person (€400 in total for both of you), said Oonagh Casey Grehan, tax director at Fagan & Partners. Tax relief on health insurance is generally granted at source so most people do not need to claim it as it is given as a reduction in the premium they pay. No further tax relief is allowable on your private health insurance. You mentioned the over 65s marginal tax relief scheme, where your first €36,000 is tax-free and the excess is taxed at 40pc.
