DANIEL AND JESSICA are married, in their early 60s and live in Dublin. Daniel owns a graphic design company, while Jessica does not work outside the home. They have two children, both at university.

Daniel’s salary as a company director is €162,000 and he claims relief for pension contributions at the 40 per cent limit on which tax relief is available, up to the annual earnings ceiling of €150,000.

As he nears retirement, he hopes to commute part of his pension into a tax-free lump sum, he is pleasantly surprised the Minister did not introduce a tax on this.

Jessica’s father has Alzheimer’s. The couple pay €25,000 towards the cost of home nursing care each year. They claim the dependant relative tax credit and the qualifying medical expenses for the home care.

They were disappointed the Minister limited tax relief on this to the standard rate in the last budget but are consoled that no more restrictions were introduced.

While Daniel is relieved that the Minister did not introduce a higher third rate of tax or increase the current higher rate, he is pained by the doubling of the income levy and health levy, the reduction in the ceiling for reaching the higher health levy rate and the increase in the PRSI ceiling.

They are happy changes were not brought in whereby they would be obliged to pay for third- level under-graduate studies. Overall, they will be worse off by €420 a month.