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Claiming tax back on nursing home fees

  • 27-06-2017 10:01pm
    #1
    august12
    Registered Users, Registered Users 2 Posts: 1,275 ✭✭✭


    Is it possible to do the following: am paying nursing home fees for a close relative. 80% of pension is taken to pay the fees and 7.5% of the value of house which is approx. 1200 per month, is it above board for this relative to gift me the pension i.e. 80% portion, I then pay the monthly fee from my bank account and claim a tax refund on all the cost through my PAYE online account?


Comments

  • #2
    CIARAN_BOYLE
    Registered Users, Registered Users 2 Posts: 14,599 ✭✭✭✭CIARAN_BOYLE


    august12 wrote: »
    Is it possible to do the following: am paying nursing home fees for a close relative. 80% of pension is taken to pay the fees and 7.5% of the value of house which is approx. 1200 per month, is it above board for this relative to gift me the pension i.e. 80% portion, I then pay the monthly fee from my bank account and claim a tax refund on all the cost through my PAYE online account?

    You may have to pay gift taxes, otherwise known as capital acquisitions tax.


  • #3
    august12
    Registered Users, Registered Users 2 Posts: 1,275 ✭✭✭august12


    CIARAN_BOYLE wrote:
    You may have to pay gift taxes, otherwise known as capital acquisitions tax.


    Gift tax wouldn't apply, under the threshold re parent to child. My main concern, is it above board to do this.


  • #4
    CIARAN_BOYLE
    Registered Users, Registered Users 2 Posts: 14,599 ✭✭✭✭CIARAN_BOYLE


    august12 wrote: »
    Gift tax wouldn't apply, under the threshold re parent to child. My main concern, is it above board to do this.

    It's important to remember that the threshold is a lifetime one. So if this goes on for 5 years and is €20,000 a year its €100,000 off your lifetime limit of gifts.


  • #5
    august12
    Registered Users, Registered Users 2 Posts: 1,275 ✭✭✭august12


    CIARAN_BOYLE wrote:
    It's important to remember that the threshold is a lifetime one. So if this goes on for 5 years and is €20,000 a year its €100,000 off your lifetime limit of gifts.


    Yes, am aware of that, this won't be an issue for me, I can receive 3000 a year which is cat exempt and won't affect the threshold as far as I know, but do you know if what I'm hoping to do is above board.


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