We've just had our eldest daughter diagnosed with a strong dog allergy and allergies to grass, pollen etc after she took a reaction to a bee sting (although thankfully she wasn't allergic to bees). We were strongly advised by the consultant that we should not even consider keeping the kitten we'd had for 4 weeks as her allergies would only get worse and the future risks of more severe reactions to things such as bees and other allergens would get worse. We were upset and so were the children but at the end of the day you can't take risks with your children's health. We found a new home for our kitten and my daughter's symptoms eased immediately although the consultant said it can take at least a year for all the allergens to leave the home as it gets on everything.
Because there's a cough involved I'd be really worried about asthma so my first step would be to make a gp appointment. The child will then probably be referred to a specialist for allergy testing.
The only other thing I found out is that if you get an air ioniser/ purifier in every room it can be successful at easing symptoms but the most effective ones are extremely expensive.
It's hard to part with an animal that's already part of the family especially if it's already been moved around a lot but it may be the realistic choice and there are lots of dog rescue centres who will only let the dog go to a suitable home, perhaps one where there's already been a dog in the past....
Sinead