Dáil Éireann Debate, Tuesday - 27 January 2026
936. Deputy Barry Ward asked the Minister for Health the position regarding engagement she has had with the Department of Finance in relation to the creation of a tax credit for those who join gyms to encourage an uptake in gym membership and use; and if she will make a statement on the matter. [5524/26]
Amharc ar fhreagra937. Deputy Barry Ward asked the Minister for Health if her attention has been drawn to calls to include gyms under tax relievable medical expenses; the steps she has taken to work towards that position with the Department of Finance; and if she will make a statement on the matter. [5525/26]
Amharc ar fhreagraI propose to take Questions Nos. 936 and 937 together.
I am advised by my colleagues in the Minister for Finance that Income tax relief in respect of health expenses is provided for in section 469 of the Taxes Consolidation Act (TCA) 1997. This legislation provides for tax relief at the standard rate (currently 20%) on certain health expenses incurred in the provision of health care. Health care is defined for the purposes of that legislation as the prevention, diagnosis, alleviation or treatment of an ailment, injury, infirmity, defect or disability and includes care received by a woman in respect of pregnancy. To qualify for tax relief, the health care must be carried out, or advised, by a registered practitioner, such as a doctor or a dentist.
Qualifying health expenses may include, but are not limited to, the following:
• the services of a practitioner,
• diagnostic procedures carried out on the advice of a practitioner,
• maintenance or treatment necessarily incurred in connection with the services of a practitioner or diagnostic procedures carried out on the advice of a practitioner, and
• drugs or medicines supplied on the prescription of a practitioner.
This is currently a broadly availed of tax relief and is significant in terms of tax foregone. In the most recent year that data is available, 2021, there were 567,900 claims at a cost of €172 million (excluding nursing home expenses).
While, broadly, the rationale behind the income tax relief for health expenses is that it is intended to provide assistance for expenses of a significant or exceptional nature, the range of health related expenses provided within the scope of the relief is extensive.
Expanding the scope of qualifying expenses inevitably leads to calls for further items to be included. It is important to ensure the relief is sufficiently calibrated and is the most appropriate use of fiscal resources. Tax reliefs, no matter how worthwhile in themselves, lead to a narrowing of the tax base.
In relation to fitness based measures more generally, the Cycle To Work scheme, specifies that bicycles and associated safety equipment provided by employers to employees will be treated as a tax exempt benefit-in-kind subject to certain conditions being met. One of the benefits envisaged from the scheme was indeed that more people cycling to and from work would improve health and fitness levels. In addition, the Finance Act 2018 commenced the Accelerated Capital Allowances scheme for Childcare facilities and Fitness Centres. The scheme was introduced to encourage employers to develop childcare facilities and fitness centres onsite for their employees. The scheme provides accelerated allowances for qualifying buildings or structures over a seven-year period and accelerated allowances for related equipment at 100% in year 1.
It should be noted that there are a multitude of ways in which individuals engage in physical activity, including walking, involvement in sports teams or the purchase and use of personal equipment, all of which come with costs for individuals.
The Department of Finance's Tax Expenditure Guidelines set out best practice for evaluating new tax expenditure measures. These guidelines make clear that any policy proposal which involves tax expenditures should only occur in circumstances where there is a demonstrable market failure and in particular, should only be considered where it would be more efficient than a direct expenditure intervention.
It is the case that all tax measures are kept under review and proposals for new measures or adjustments to existing measures are normally considered by the Minister for Finance in the context of the annual Budget and Finance Bill process, having due regard to available resources and the equitable treatment of all taxpayers.
The Department of Health continues to engage with a broad range of stakeholders on the development and implementation of mechanisms aimed at supporting population levels of physical activity through our co-chairing of an Implementation Group under Ireland's National Physical Activity Framework.
