Dáil Éireann Debate, Wednesday - 28 June 2023
48. Deputy Mairéad Farrell asked the Minister for Finance if the family of a deceased person can claim tax relief on nursing home expenses on their relative's behalf; and if he will make a statement on the matter. [31513/23]
View answerI am informed by Revenue that section 469 of the Taxes Consolidation Act 1997 (“TCA”) provides for tax relief in respect of health expenses incurred for the provision of health care.
Section 469 TCA defines health care as the prevention, diagnosis, alleviation or treatment of an ailment, an injury, an infirmity, a defect or a disability.
For the purposes of tax relief health expenses are expenses in respect of the provision of health care. Included in the definition of health expenses is maintenance or treatment in a hospital provided the expenses are necessarily incurred in association with the services of a practitioner or refer to diagnostic procedures carried out on the advice of a practitioner.
A practitioner is defined in the section as "any person who is:
• registered in the register established under section 43 of the Medical Practitioners Act 2007,
• registered in the register established under section 26 of the Dentists Act, 1985,
• or in relation to health care provided outside the State, entitled under the laws of the country in which the care is provided to practice medicine or dentistry there".
In addition, tax relief may be available in respect of nursing home care, where the nursing home provides access to 24-hour nursing care on site. In such circumstances, tax relief is given at the individual’s marginal rate of income tax (being 40% if paying income tax at the higher rate or 20% if subject to tax at the standard rate).
Taxpayers can claim relief on health expenses or nursing home care in respect of amounts they incur on their own behalf or on behalf of another individual.
Where a contribution is made by an individual, in defraying nursing home fees and State support under section 3 of the Nursing Home Support Scheme Act 2009, otherwise known as the “Fair Deal Scheme”, has been provided, the State support contribution towards the cost of such nursing home expenses under this scheme is not treated as a qualifying expense.
Where, under the Fair Deal Scheme an individual has been in receipt of ‘Ancillary State Support’, otherwise known as the “Nursing Home Loan”, a claim cannot be made on the loan amount paid by the HSE to the nursing home. However, when the loan is repaid, the individual’s estate can claim tax relief on the amount repaid.
If the deceased person funded the nursing home fees, in full or by way of contribution under the Fair Deal Scheme, during their lifetime, a claim can be made by the estate for the years in question subject to the normal four year time limit on making such claims. For example, in respect of a claim made in 2023, the latest year that can be claimed is 2019, subject to nursing home fees being incurred in that year. Any expenses defrayed out of the estate of a deceased person by his or her executor or administrator are deemed to have been defrayed by the deceased person immediately before his or her death.
If another individual funded the nursing home fees the claim can be made by that individual, subject to the normal four year rule.
Further information on qualifying health expenses (including nursing home fees) is available on Revenue’s website, available at www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-15/15-01-12.pdf.
