Claiming tax relief on Fair Deal Loan Repayment

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Dee1976

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Hi,
A relative recently passed away who was under the care of a nursing home funded by the Fair Deal scheme. I have lived in their home for 6 years and have now inherited this house. Rather than sell the house to repay the Fair Deal loan of approx €112k, I intend to pay the loan and remain in the house.
My question is, am I entitled to claim this payment through health expenses?
The payment is collected by Revenue, the website states once the loan is repaid, you or your estate can claim the amount in health expenses but I'm not sure if this applies once another person is paying.
I have contacted revenue several times and the people I have spoken to said they didn't know.
Any help on this would be much appreciated.
 
Dee1976 said:
the website states once the loan is repaid, you or your estate can claim the amount in health expenses but I'm not sure if this applies once another person is paying.
Click to expand...

I was not aware of that, but it seems reasonable.

A person can claim tax relief at their marginal rate on their nursing home expenses.
A person can claim tax relief at their marginal rate on the payment of nursing home expenses for someone else.

So the state paid your relative's nursing home expense by way of a loan.

It seems reasonable that if you now pay them by repaying the loan, you can claim tax relief on such payments.
 

Nursing home and additional nursing care expenses

This page tells you how to claim relief on nursing home expenses under certain circumstances.
www.revenue.ie www.revenue.ie

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 tax relief 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
  • upon your death.
When the loan is repaid, you or your estate can claim tax relief on the amount repaid.
 
My wife had this query a couple of years ago.

She emailed revenue via her "My Account" and asked - and was told "no".

I emailed Revenue via ROS and asked the same question, and was told "yes".

As I file our Form 11, I went with the answer that I had received - and printed off the correspondence, just in case!
 
Thanks both. @Shirazman could you
Shirazman said:
My wife had this query a couple of years ago.

She emailed revenue via her "My Account" and asked - and was told "no".

I emailed Revenue via ROS and asked the same question, and was told "yes".

As I file our Form 11, I went with the answer that I had received - and printed off the correspondence, just in case!
Click to expand...
Thank you, so as with me, nothing really concrete from Revenue. I was told no today by a woman in Revenue, but she wasn't sure. She spoke to colleagues and they said "it was an agreement between my relative and HSE so not mine to claim"
Very confusing as I will be the relevant accountable person.
Were you able to claim back? I'm not sure of next steps.
 
Dee1976 said:
Thank you, so as with me, nothing really concrete from Revenue. I was told no today by a woman in Revenue, but she wasn't sure. She spoke to colleagues and they said "it was an agreement between my relative and HSE so not mine to claim"
Very confusing as I will be the relevant accountable person.
Were you able to claim back? I'm not sure of next steps.
Click to expand...

Don't know if this will work; the attached is the bones of the reply that I received.

1689004036713.png
 

Attachments

  • Fair Deal repayment - tax relief.pdf
    187.2 KB · Views: 119
Last edited by a moderator:
Brendan Burgess said:
It's not health expenses by the way. Health expenses attract tax relief at 20%.

Nursing home fees attract tax relief at your marginal rate.

Brendan
Click to expand...
Thank you, so tax relief in that case at 40%. It does seem pretty straight forward from the Revenue website but when I've called to confirm this it's been anything but. If I pay the outstanding loan then according to their site direction I can claim relief on the payment but nobody in Revenue has confirmed this so I was hoping somebody had experienced same and maybe a how to on it.
 
Shirazman

That is excellent.

@Dee1976

Just claim the relief on your tax return.

And explain what you are doing.

Make sure to keep the receipts.

Brendan
 
My cousin is in a nursing home under the FD scheme.
Her assets include a flat in England.
Will payments conclude after 3 years as in Ireland. .
Many Thanks. .
 
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