Catherine Murphy (Kildare North, Social Democrats)
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1000. To ask the Minister for Health to allow the release of properties for rent where the properties are held over in respect of capital to underpin fair deal investment; his plans to review the rule that these unoccupied properties that cannot be rented to third parties whilst held over for fair deal; if he will establish a scheme where any income in respect of these properties can be subject to tax and also further fund a person's care; the barriers he has identified to the provision of such a scheme; and if he will make a statement on the matter. [24358/16]

Helen McEntee (Meath East, Fine Gael)
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The Nursing Homes Support Scheme (NHSS) is a system of financial support for those in need of long-term nursing home care. Participants contribute to the cost of their care according to their means while the State pays the balance of the cost.

Participants in the Scheme contribute up to 80% of their assessable income and a maximum of 7.5% per annum of the value of assets held. In the case of a couple, the applicant’s means are assessed as 50% of the couple’s combined income and assets. The first €36,000 of an individual’s assets, or €72,000 in the case of a couple, is not counted at all in the financial assessment. The capital value of an individual’s principal private residence is only included in the financial assessment for the first three years of their time in care.

There is no prohibition on an NHSS participant renting out their home if they wish. Rental income is included in the overall calculation of the applicant’s contribution towards the cost of care. In addition, certain allowable deductions can be netted off against a person's means prior to the calculation of their contribution to care. These include health expenses, income tax, social insurance contributions and levies required by law such as the Local Property Tax, and borrowings in respect of the principal private residence.

Where a person’s assets include land and property in the State, the contribution based on the capital value of such assets may be deferred. The loan can be repaid at any time but will ultimately fall due for repayment upon the applicant’s death or sale of the asset. A nursing home resident can apply for this deferral at any stage.

There are currently no plans to amend the NHSS legislation to exclude rental income from the financial assessment.