Section 466 of the Taxes Consolidation Act, 1997 provides for an allowance of up to £220 at the standard rate of income tax in respect of a dependent relative. A dependent relative is a relative of the claimant, or of the claimant's spouse, incapacitated by old age or infirmity from maintaining himself or herself, the widowed father or widowed mother of the claimant or of the claimant's spouse, whether incapacitated or not, or a son or daughter of the claimant who resides with the claimant and on whose services the claimant, by reason of old age or infirmity, is compelled to depend.
If the dependent relative has income in his or her own right, the maximum allowance of £220 is reduced by £1 for every £1 by which the dependent relative's income exceeds £5,536 in the current tax year.
If the father referred to by the Deputy is a dependent relative for the purposes of section 466, tax relief may be claimed under section 469 Taxes Consolidation Act, 1997 in respect of health/medical expenses incurred by the father.
Home nursing expenses are treated by the Revenue Commissioners as follows. In cases of serious illness where qualified nurses are engaged on the advice of a medical practitioner to provide constant nursing care in the patient's home, relief under section 469 of the Taxes Consolidation Act, 1997, may be allowed where the following conditions are satisfied: (1) a medical certificate is provided which (a) shows the nature of the patient's illness, (b) states that constant nursing care by fully-qualified nurses in the patient's home is required, and (c) covers the full period for which home nursing is being claimed; (2) the nurses providing the nursing care are fully qualified and their full names, addresses and qualifications have been supplied; (3) receipts are provided in respect of all payments to the nurses and, where necessary, a breakdown of the payments is provided; this is to ensure that relief is given only in respect of the amounts paid which directly relate to the rendering of nursing care and not to the nurse's expenses.
Depending on the circumstances of the family referred to by the Deputy, covenants may be effective in providing tax relief. Unrestricted tax relief can be claimed on covenants in favour of permanently incapacitated adults. Income covenanted by the children to the father will effectively become the income of the father who can then claim tax relief on health/medical expenses he incurs.
Section 467 of the Taxes Consolidation Act, 1997, provides for a tax deduction of up to £8,500 in a year where a relative or relatives of an incapacitated person employ a carer to care for the incapacitated person. As the carer must be employed, there is an obligation to deduct the statutory deductions from emolument paid to him-her. However, where the carer is employed through an agency, it is normal for the agency to pay the carer and to deduct the statutory deductions.
