Nursing Home Fees - fully tax deductible or at marginal rate?

eimearnid

Just looking at answer to ACCA F6 tax exam question where self employed jointly assessed couple paid €8000 in nursing home fees in 2009 and the answer shows the 8000 coming under deductions and being subtracted in full from total income. Is this right? Thought the relief was at marginal rate. Thanks.

nompere

For 2009 and 2010 the relief is at the marginal rate - unlike all the other medical expenses where relief is given at basic rate.

S.469 (2) TCA 1997 originally provided that medical expenses were a deduction from total income. The amendment to S.469 by S. 8 FA (2) 2008 preserved that deduction for nursing home expenses and provided that for other expenses the income tax liability is to be reduced by a basic rate credit.

nompere

Missed part of the answer out the first time.

Relief at marginal rate means relief at the top rate being paid by a taxpayer - as opposed to basic rate relief which is limited to a maximum of 20%.

So marginal rate relief is "fully tax deductible".

eimearnid

Yes thanks I guess I should have realised that.