A small bit of relief from worry in the Finance Bill for those, who continued and still continue to be in receipt of Mobility Allowance after the scheme was suspended in 2013. With the suspension of the scheme there existed a technical liability for income tax in respect of these payments. An amendment has been passed in the Finance Bill exempting past and future payments from income tax liability. In the amendment debate, Minister Donohue, described the provision as follows;

“Section 6 inserts a new section, 192H, into the Taxes Consolidation Act of 1997 to exempt from income tax payments commonly known as a mobility allowance made by or on behalf of the Health Service Executive to a person who satisfied the conditions of the mobility allowance scheme as administered by the HSE

The main objective of the mobility allowance is to provide a contribution to individuals with severe disabilities who are unable to walk or use public transport. Originally, it was expected to help finance the cost of occasional taxi journeys. While the scheme was terminated in 2013, recipients at that time retained their right to continue to receive interim payments. This amendment formally exempts the allowances from income tax prospectively and retrospectively”

The amendment was passed without the need for a vote