RickyBee14
Registered User
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- 1
My Mum passed away recently . She was paying for her own 24x7 care through Home Instead and claiming tax relief against her own income tax.
Because of an earlier gift from my Dad I was over the limit to receive any tax-free gift to allow me pay the care bills and claim tax relief at my marginal rate of 41%, so she was claiming relief at her marginal rate of 20%. However, because my Mum had a low income she was not able to avail of the full tax relief.
I have difficulty in understanding why someone who is paying her own care bills should be so inequitably treated compared to someone who has a high income and can fully avail of the 41% tax relief. Most reliefs are now at the standard rate but this is one notable exception where it appears to me that the rich benefit at the expense of the not so well off.
I am now doing her final tax returns for 2013 and 2014. Before I commit anything to paper is there any way Revenue approved way of transferring the payments so that I can claim relief at my marginal rate without having to pay gift tax. My instinct tells me "no", but maybe I am missing something which I should be discussing with Revenue.
Because of an earlier gift from my Dad I was over the limit to receive any tax-free gift to allow me pay the care bills and claim tax relief at my marginal rate of 41%, so she was claiming relief at her marginal rate of 20%. However, because my Mum had a low income she was not able to avail of the full tax relief.
I have difficulty in understanding why someone who is paying her own care bills should be so inequitably treated compared to someone who has a high income and can fully avail of the 41% tax relief. Most reliefs are now at the standard rate but this is one notable exception where it appears to me that the rich benefit at the expense of the not so well off.
I am now doing her final tax returns for 2013 and 2014. Before I commit anything to paper is there any way Revenue approved way of transferring the payments so that I can claim relief at my marginal rate without having to pay gift tax. My instinct tells me "no", but maybe I am missing something which I should be discussing with Revenue.