Dáil Éireann Debate, Wednesday - 15 April 2015
170. Deputy Michael McGrath asked the Minister for Finance if it is possible to claim income tax relief in respect of contributions paid by a deceased person, under the Nursing Home Support Scheme; if so, the person who would make the claim on behalf of the deceased person's estate; the procedure that needs to be followed; and if he will make a statement on the matter. [14685/15]
Amharc ar fhreagraRelief in respect of health expenses is allowed in accordance with the provisions of section 469 of the Taxes Consolidation Act 1997 (TCA).
Any contribution made by an individual in defraying expenses in the nature of maintenance or treatment in a nursing home on behalf of an individual, where that individual has received State support under section 3 of the nursing home support scheme Act 2009, also known as the "Fair Deal Scheme", is treated as health expenses qualifying for relief. This relief is given at the marginal rate of tax but cannot exceed an amount which reduces the income tax liability for the year to nil.
The State support contribution towards the cost of such nursing home expenses under this scheme is not treated as a qualifying expense. Any deferred payment in respect of the financial contribution by the State under the nursing home support scheme defrayed out of the estate of a deceased person by his or her executor or personal representative are deemed to have been defrayed by the deceased person immediately before his or her death and may be claimed under the heading of health expenses against the tax liability of the deceased person.
The personal representative of a deceased person is responsible for settling any outstanding tax matters including any claim to a repayment. He or she is responsible for filing any outstanding tax return with the Revenue Office of the deceased and, in respect of relief for medical expenditure, including nursing home expenses, to submit Form Med 1. A claim for tax relief must be made within 4 years after the end of the tax year to which the claim relates.
Further information is available from the Revenue website at: http://www.revenue.ie/en/tax/cat/leaflets/it41.html#section2, http://www.revenue.ie/en/tax/it/leaflets/it6.html#content
