How Tax Relief Work Under the Fair Deal Scheme in Ireland - 2022 Update

 

In Ireland, the average weekly cost of a private nursing home was roughly €896 in 2015, or slightly under €50,000 per year. By 2022, that ratio has risen to almost €1,060 per week! Furthermore, additional costs for care, such as nursing home service fees and unique demands for care equipment or therapy, increase the cost.

It is good to know that the care costs contribution under the Fair Deal Scheme is tax-deductible at your marginal tax rate in Ireland. These expenses do not have to be paid by the applicant. A family member or a loved one can pay the care cost on behalf of the applicant, and obtain a tax reduction. There is anti-avoidance providence in place too.

Taxpayers’ Guide for The Nursing Home Support Scheme Cost of Care

If you have a significantly higher pension income, you may be responsible for the majority of the cost under the Fair Deal Scheme. As a result, paying for your nursing home care yourself may be preferable, especially if you are a higher-rate taxpayer who can claim 41% tax relief on the costs of private nursing home care.

There's also the five-year 'look-back' clause, which means that any assets you previously possessed that were transferred to someone within five years of applying for a Fair Deal will still be considered in your financial means assessment.

A reputed Nursing Homes Support Scheme guide recommends that to keep the government out of your assets, applicants who are asset rich but cash-poor must plan their wealth at least five years ahead of time before they plan to enter a nursing home.

 

The Nursing Home Loan Scheme

Under the Fair Deal Loan Scheme or the Ancillary State Support Scheme, there are available claim reliefs on the cost of health expenses. These can be medical expenses for yourself, a family member, or anyone else, as long as you paid for them.

 

If you are authorised for the Ancillary Support Scheme, you can delay the payment of the Nurbased on your assets (land or property). This means that the HSE will pay the money to the nursing home on your behalf and collect it following your death or the sale of all or a portion of your asset.

 

How Health Expenses Impact The Nursing Home Loan Support

 

The Revenue sets a clear guideline as to how the Health Expenses impact the loan. Health expenses that qualify for relief from the repayment  You may wish to defer your healthcare costs. This benefit applies to individuals that have any Ireland-registered property assets, home and farm or land. The HSE provides you with a loan, using your assets as security.

The HSE pays the nursing home immediately for the loan. However, you cannot claim tax relief on the amount paid by the HSE to the nursing home when you sell the asset used as security

upon your death. You or your estate can claim tax reduction on the amount repaid when the loan is repaid. During the tax year, you can claim nursing home charges in real-time.

Additional Relief Included In The Nursing Home Support Scheme Cost of Care

 

You may be eligible for reimbursement for the cost of additional nursing care. You or a family member may be suffering from a serious disease and require home nursing care. On the recommendation of a medical practitioner, you hire a skilled nurse to offer nursing care at your home. Alternatively, you could be in a nursing home and require more nursing care than is usual. Get in touch with a Nursing Homes Support Scheme Guide to get complete coverage of legal and official steps.

To be eligible for this relief, you must provide a medical certificate as well as documents stating the following:

➔    A qualified nurse provides continuous nursing care at the patient's home.

➔    In a nursing home, additional nursing care is available.

➔    The patient's correct name and address

➔    The nature of the patient's illness is described in detail.

➔    The total amount of time that home nursing is being claimed

➔    Full name and address of the nurse, as well as verification of their nursing license.

➔    A list of all payments made to the nurse, as well as all payment receipts 

 

To claim the tax relief and health-related costs can be claimed through my Account or the Revenue Online Service (ROS).

Remember, that only expenses for which you have receipts are eligible for reimbursement. You can get a refund on your medical expenses over the previous four years. If you have private health insurance, you may be able to claim tax relief on the part of your medical expenses that your insurer does not cover.