Taxation - Nursing Home

[InfoSeeker]

If a person with circa 50k income, eg from state pension and from job which he retired several years ago, goes into a nursing home where the cost is also circa 50k then what effect will this have on his income?

Will he get a much higher tax credit and therefore his income will nearly cover the costs of his nursing home care?

Or he is taxed the same as if he was a retired person not in a nursing home?

 

[Tenacious]

Or he is taxed the same as if he was a retired person not in a nursing home?

No. Nursing home fees are deducted from gross income to arrive at taxable income. Here's a list of Approved Nursing Homes that qualify under the Health Expenses Relief.

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And here's the Med1 claim form.
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[InfoSeeker]

Thanks Tenacious, so in the above example if his Gross Income was 50,000 and the Nursing Home fees were 50,000 then he would have no taxable income.

Seems logical as otherwise the future would be bleak indeed.