All parents who have a child with special needs knows the importance of saving for the future. But it is not that easy and the government have placed a few hurdles in your way. The first being means testing. If you have substantial savings in your own name or your child with special needs name then you might not qualify for certain means tested payments.

The second biggest issue you face is Deposit Interest Retention Tax (DIRT).  DIRT strips away lots of money in your saving accounts and passes it on to the government. All interest you receive is subject to this tax and is charged at around 30%. Some people I meet are total unaware of this tax on savings. The reason is that it occurs automatically each year without your permission or knowledge.

You may be able to claim an exemption from paying this tax on your child’s savings if they are permanently incapacitated and their tax credits for the year doesn’t exceed the tax that would be chargeable on their income for the year.

If you believe you are entitle to a refund or would like to claim an exemption for your child with special needs, then send an email to  and I be happy to send you out the appropriate forms for free.

Allan Matthew Cuthbert t/a Financial Wellbeing is regulated by the Central Bank of Ireland to advice on Mortgage,Savings, Life and Pension products