Tax break when caring for a disabled relative.

Greaney

Are there any tax breaks available on building a Granny flat? This is not a luxury, we have a genuine family housing need and it'd be good to have a few links or tips from folk online to get us mulling over and planning.

Now please understand, we don't qualify for carers grants(household income is too much) but gosh, a tax break would really help get things moving. Just to re-iterate, I'm looking for tax information, not grants... I've had hours of mulling over grants with care workers etc. and we just don't qualify.

gerrybbadd

Greaney wrote: »

Are there any tax breaks available on building a Granny flat? This is not a luxury, we have a genuine family housing need and it'd be good to have a few links or tips from folk online to get us mulling over and planning.

Now please understand, we don't qualify for carers grants(household income is too much) but gosh, a tax break would really help get things moving. Just to re-iterate, I'm looking for tax information, not grants... I've had hours of mulling over grants with care workers etc. and we just don't qualify.

Nope.

You can however, claim the dependant relative tax credit. It's a massive €80 per year

Greaney

gerrybbadd wrote: »

Nope.

You can however, claim the dependant relative tax credit. It's a massive €80 per year

That actually made me laugh, wow. Thanks for that Gerry!!:o

CIARAN_BOYLE

Depending on a lot things the following scheme could be viable

1. You provide your relative with money by way of deed of covenant. Tax saving is the difference between what you would pay on the income and what they would pay on the income.

2. Your relative rents the granny flat under the rent a room relief scheme meaning you pay no tax on the rental income.

So it's not on the building of the flat but it would be a constant stream of tax relief.

Seek professional advice to ensure that the granny flat is covered by rent a room relief and that you can give you relative money by way of a deed of covenant and receive tax relief.

amtc

A friend of mine built on quite a large extension for elderly parents and claims it under the rent a room allowance. There is a separate entrance externally (it was a garage) and a entrance into the house internally, which has a separate lock.