Tax Relief on Nursing Home Expenses

Tax Relief on Nursing Home Expenses

You may claim income tax relief on nursing home expenses paid by you. You can claim this relief at your highest rate of tax if the nursing home provides 24-hour on-site nursing care.

Nursing Homes Support (Fair Deal) Scheme

The Health Service Executive (HSE) can provide you with assistance for the cost of your nursing home care. The HSE will review your income and assets to calculate the amount you should pay towards the cost of your care. You can claim health expenses relief on the amount you pay yourself.

The HSE pay the balance of the costs of the nursing home. You cannot claim health expenses relief on this amount.

Ancillary State Support Scheme (Fair Deal Loan Scheme)

You may wish to defer your healthcare costs. You can do this if you have Irish land or property assets. The HSE provide you with a loan, using your assets as security. The loan is paid directly by the HSE to the nursing home. You cannot claim health expenses on the amount paid by the HSE to the nursing home.

The loan is due to be repaid:

When you sell the asset used as security or upon your death.

When the loan is repaid, you or your estate can claim health expenses on the amount repaid.

Additional nursing care expenses

You can claim relief for the cost of expenses of additional nursing care.

If you or your relative suffer from a serious illness and require home nursing. This is where you employ a qualified nurse, on the advice of a medical practitioner, to provide nursing care at home.

Or if you are in a nursing home and require more nursing care than is normally required.

To claim this relief, you must provide a medical certificate that states:

  • That constant nursing care by a qualified nurse in the patient’s home is necessary or that additional nursing care in the nursing home is necessary
  • The name and address of the patient
  • The nature of the patient’s illness
  • The full period for which home nursing is being claimed.

You must also provide the nurse’s full name and address, as well as proof of their nursing qualification.

You must keep a breakdown of all payments to the nurse and all payment receipts.

How to claim

To claim tax relief on nursing home or additional nursing care expenses, you must include the amount in your health expenses and enter on your tax return.

For more information contact our Dublin Tax Team on 01 278 4455 or our Carlow Tax Team on 059 913 7040.

Close Company Surcharge

Close Company Surcharge On Certain Undistributed Income

Section 440 of the Taxes Consolidation Act 1997 provides for an additional charge of corporation tax on close companies at the rate of 20 per cent of the excess of the aggregate of the distributable investment income and the distributable estate income over the distributions made for an accounting period.

A close company is defined as a company under the control of 5 or fewer participators or under the control of participators who are directors.

Exemptions to the surcharge

There is no surcharge where the excess is €2,000 or less and marginal relief is provided where the excess is slightly more. Where a company has associated companies, the €2,000 limit is divided by the number of associated companies, including the company itself. An associated company must be included for the purposes of the surcharge even if it was an associated company for part only of the accounting period concerned.

The amount on which the surcharge is made cannot exceed the accumulated undistributed income at the end of the accounting period. Where a company is subject to any restriction imposed by law as regards the making of distributions, regard shall be had to this restriction in determining the amount of income on which a surcharge shall be imposed under section 440.

For more information contact our Dublin Tax Team on 01 278 4455 or our Carlow Tax Team on 059 913 7040.

Employment Investment Incentive

Employment Investment Incentive (EII) and Start-up Relief for Entrepreneurs

Finance Act 2018 – Business Tax

The Act aims to simplify the legislation provisions of the income tax reliefs for investment in corporate trades.

The most significant change being the move away from the current application process to a system whereby companies will now self-certify that they have met the conditions. It amends the trigger points in relation to when claims can be made, tying all claims to a requirement to have spent 30% of the money on a qualifying purpose rather than the various trigger points which currently apply under existing provisions. EII and SURE reliefs will be able to run until the end of 2021.

Intellectual Property

The Act has updated the rules for capital allowances on Intellectual Property. The update provides additional clarity on income arising when IP is acquired prior to 11 October 2017 and when IP is acquired from 11 October 2017 onwards.

The updates now require that the income received from the two different periods be treated as two separate income streams when calculating capital allowances.

For more information contact our Tax Team in Dublin on 01 278 4455.