Martin and Karen are in their mid to late 50s and live in the Dublin suburbs. Martin is a finance director who changed job last year and now has an annual salary of €155,000. Martin has the use of a fully expensed company car worth €28,000.

His annual business mileage is less than 5,000 per annum. Martin was not part of the pension scheme in his previous job so he currently maximises his personal pension contributions to the 35 per cent limit on which tax relief is available.

Karen does not work outside the home.

Karen's elderly mother lives in a nursing home. Martin and Karen pay €21,000 towards the cost of this, of which €18,000 qualifies for tax relief.

They claim the dependant relative tax credit and the qualifying medical expenses for the nursing home.

They are relieved that they can currently claim tax relief at the top rate of tax on the nursing home costs and hope that the Minister does not reduce the tax relief they currently receive on this expense.

Martin and Karen are hoping that the rumours they have heard about a decrease in the top rate of tax are true and that the Minister will increase the personal tax credits, and the standard tax rate band for married couples where just one spouse works as he has done in previous years.