Separated parents to both lose out

Budget changes regarding tax credits for separated parents could see both the mother and father lose out, it has been revealed.

The Department of Finance admitted the surprise move as it attempted to explain questions arising from Michael Noonan’s financial statement.

The one-parent family tax credit is to be replaced by the single-person child carer credit under changes announced by the finance minister. The existing set-up allows both parents to claim credit of up to €1,650 if they are working and their offspring spent time living with them during the tax year. Under the new system only the primary carer would be eligible for relief.