Richard Bruton (Dublin North Central, Fine Gael)
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Question 180: To ask the Tánaiste and Minister for Finance if tax relief is claimable by a person in respect of the cost of any out of pocket costs of a home care package approved by a public health nurse or a discharging hospital. [32117/07]

Brian Cowen (Laois-Offaly, Fianna Fail)
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Home care packages deliver a wide range of services and may vary according to the care needs of the person so that, for example, there might be a greater emphasis in some packages on home care assistants while other packages may require a greater level of therapy and nursing. I am informed by the Revenue Commissioners that, in the context of care for elderly or ill individuals, the question of tax relief arises, generally, under three main headings — (a) tax relief in respect of health expenses; (b) tax relief, in cases of serious illness, where qualified nurses are engaged on the advice of a medical practitioner to provide constant nursing care in the patient's home; and (c) a tax deduction for employing a person to take care of an incapacitated individual. In all cases the relief may be claimed in relation to unreimbursed health expenses only. In the context of the Deputy's question, therefore, these reliefs do not arise if the costs are met by a home care package from the Health Service Executive.

The normal health expenses rules under section 469 of the Taxes Consolidation Act 1997 apply in respect of the costs incurred by an individual in respect of qualifying health expenses, including where the individual has to incur such expenses in the context of a home care package. Tax relief may be claimed on qualifying unreimbursed health expenses paid by an individual and, for tax years up to 2006 inclusive, this relief is restricted to those health expenses incurred by the individual in respect of himself or herself, and his or her qualifying dependants. However, this requirement for a defined relationship is abolished in respect of claims for 2007 and subsequent tax years meaning that an individual can claim tax relief in respect of health expenses paid by him or her on behalf of any other individual. For tax years up to 2006 inclusive, the first €125 of any health expenses incurred by the taxpayer, or in the case of an individual claiming relief in respect of two or more persons the first €250, does not qualify for relief. However, for 2007 and subsequent tax years, relief is available in respect of all qualifying health expenses. Medical expenses relief may be claimed by logging onto the Revenue website www.revenue.ie and accessing PAYE self-service. Alternatively, an individual can make a manual claim using Form MED 1 (available on the Revenue website). More detail on the tax relief on health expenses is contained in Revenue's Explanatory Leaflet IT 6 (available on the Revenue website).

Tax relief in respect of the cost of qualified nurses are engaged on the advice of a medical practitioner to provide constant nursing care in the patient's home. In cases of serious illness, where qualified nurses are engaged on the advice of a medical practitioner to provide constant nursing care in the patient's home, tax relief under the heading of health expenses may be allowed in respect of the costs incurred where the following conditions are satisfied:

(i)a medical certificate is provided which—

(a)shows the nature of the patient's illness,

(b)states that constant nursing care by fully-qualified nurses in the patient's home is required, and

(c)covers the full period for which home nursing is being claimed;

(ii)the nurses providing the nursing care are fully qualified and their full names, addresses and qualifications have been supplied;

(iii)details of all payments to the nurses is provided.

Section 467 of the Taxes Consolidation Act 1997 provides for a tax deduction at an individual's highest rate of tax in respect of the costs incurred by that individual of employing another person (including a person whose services are provided by or through an agency) to take care of himself or herself, a spouse or a relative who, throughout the relevant tax year, is totally incapacitated by reason of physical or mental infirmity. More detail is contained in Revenue's Explanatory Leaflet IT 47 (available on Revenue's website). The amount of the tax deduction is €50,000 for the tax years 2006 and 2007 and €30,000 for previous tax years at the claimant's highest rate of tax or, if lower, the actual amount expended in the relevant tax year in employing the person at the claimant's highest rate of tax. Where a person employs an individual, he or she will have certain legal obligations under tax law as an employer (e.g. the operation of the PAYE system).

Pat Breen (Clare, Fine Gael)
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Question 181: To ask the Tánaiste and Minister for Finance if a person (details supplied) in County Clare qualifies under the capital gains tax scheme; and if he will make a statement on the matter. [32122/07]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I am advised by the Revenue Commissioners that the taxpayer in question filed a self-assessed CGT return in respect of the tax year 2005 and duly paid the resulting liability. Specific information relating to the disposal was not supplied at the time. Retirement Relief is available for CGT purposes on disposals of business assets/part of the business assets and full relief is available where the consideration does not exceed €750,000 (€500,000 in 2005) from gains accruing to an individual aged 55 years and over, on such disposals. In the case of business assets, they must have been owned and used by the individual in the business throughout a ten-year period ending on the date of disposal. The Revenue Commissioners do not hold any evidence that the person concerned carried out a farming business prior to the disposal of the site in 2005. If the person considers himself eligible for the relief as outlined above he should contact Clare Revenue District, Kilrush Road, Ennis in this regard.