Michael Creed
Question:287 Mr. Creed asked the Minister for Finance the tax concessions available to persons paying for private nursing homes for their parents; and if he will make a statement on the matter. [8438/02]
Written Answers. - Tax Reliefs.
Under the Finance Act, 2001, an individual may claim tax relief for un-reimbursed expenses incurred in the provision of health care for a dependent relative. Health care includes maintenance in a nursing home approved by the Minister for Health and Children. In the period from 6 April 2001, to 31 December 2001, a dependent relative for the purposes of claiming the relief was a relative of the individual, or of the individual's spouse, who is incapacitated by old age or infirmity from maintaining himself or herself; the widowed father or widowed mother of the individual or of the individual's spouse, whether incapacitated or not; or a son or daughter of the individual who resides with an individual and on whose services the individual by reason of old age or infirmity is compelled to depend.
Section 9 of the Finance Bill, 2002 will enable an individual to claim tax relief in respect of expenses met for a wider range of relatives. This includes the parents or any other ancestor of the individual and the parents of the individual's spouse, whether incapacitated or not. The relief is also being extended to include other individuals whether they are relatives or not who are aged 65 years or over or who are permanently incapacitated. The changes will apply from 1 January 2002.
Each tax office has a list of approved nursing homes. The list may be viewed on the Revenue website at www.revenue.ie. Tax relief, which is available at the taxpayer's marginal rate of tax, may be claimed at the end of the relevant tax year by completing a form MED 1.