General When somebody else pays the nursing home fee - tax back 40%

torbie

Registered User
Messages
2
I have read that if somebody else pays your nursing home fee then they are entitled to claim 40% tax back - assuming that they are paying that much tax anyway.

So could I pay the fee each month but then reimburse myself each month from my parents savings and then get the tax back at end of year?
 

torblednam

Frequent Poster
Messages
430
That would be a fraudulent claim, since you’re not bearing the cost. The relevant section (section 469 TCA 1997) allows relief to the person who defrayed the costs, which, in the case as you describe it, would be your parents.
 

cremeegg

Frequent Poster
Messages
3,027
If you pay the fees you are entitled to claim the tax back.

If you receive a gift from your parents of up to €3k per annum from each parent that is not subject to tax, they could also gift your spouse or children if relevant.

Any gift you receive in excess of that is subject to capital taxes.
 

torblednam

Frequent Poster
Messages
430
If you pay the fees you are entitled to claim the tax back.

If you receive a gift from your parents of up to €3k per annum from each parent that is not subject to tax, they could also gift your spouse or children if relevant.

Any gift you receive in excess of that is subject to capital taxes.
Sorry but it’s not as simple as you paint it there.

If you pay something on the understanding that your parents are going to “gift” you and your spouse / kids money, then that fundamentally alters the substance of the thing.

I’m not saying you won’t get away with it, but the fact remains that it’s not correct, and claiming the relief in those circumstances is not a correct claim.
 
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