Uncle John is in a nursing home that is costing €1500 per week. He is paying this from his own resources. He pays no tax so cannot claim tax relief.
His niece Margaret (who is employed and paying tax at 40%) has been advised that she can pay the fees on his behalf from her income and that she can claim a tax credit (at 40%) by doing so. Uncle John will transfer the €1500 per week to her. Is she missing something here? Will she have to declare the €1500 per week from him and then pay tax at 33% on it?
His niece Margaret (who is employed and paying tax at 40%) has been advised that she can pay the fees on his behalf from her income and that she can claim a tax credit (at 40%) by doing so. Uncle John will transfer the €1500 per week to her. Is she missing something here? Will she have to declare the €1500 per week from him and then pay tax at 33% on it?