An individual can claim tax relief for unreimbursed expenses incurred in the provision of health care for the individual, the individual's spouse, or a dependent child or dependent relative of the individual. Health care includes maintenance or treatment in a hospital or approved nursing home.
The definition of "dependent relative" was broadened in this year's Finance Act so that the following are now dependent relatives for the purposes of claiming health expenses relief: (i) a relative of the individual, or of the individual's spouse, who is incapacitated by old age or infirmity from maintaining himself or herself; (ii) the widowed father or widowed mother of the individual or of the individual's spouse, whether incapacitated or not, or (iii) a son or daughter of the individual who resides with the individual and on whose services the individual, by reason of old age or infirmity, is compelled to depend. The changes are effective from 6 April 2001.
Individual family members who contribute towards the cost of a parent's maintenance in an approved nursing home can claim tax relief on their respective contributions. Tax relief for health expenses is available at the claimant's marginal rate of tax.