Written answers

Thursday, 23 February 2017

Department of Housing, Planning, Community and Local Government

Departmental Schemes

Photo of Noel GrealishNoel Grealish (Galway West, Independent)
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210. To ask the Minister for Housing, Planning, Community and Local Government his views on the possibility of participants in the fair deal scheme being able to rent out their homes tax free up to the value of the rent a room scheme, which is €14,000; and if he will make a statement on the matter. [9115/17]

Photo of Simon CoveneySimon Coveney (Cork South Central, Fine Gael)
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I am informed by my colleague, the Minister for Health, that participants in the Nursing Homes Support Scheme (NHSS), also known as “Fair Deal”, scheme which provides financial support for those in need of long-term nursing home care, 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.

The Rent a Room relief applies to income from the letting of a room or rooms in a residential premises that is occupied by the individual claiming the relief as his/her sole or main residence during the particular tax year. The relief is not available where an entire residential unit is let.

There is no prohibition on an NHSS participant renting out their home if they wish.  Rental income is included in the overall calculation of assessable income and the applicant’s contribution towards the cost of care.  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.

Action 17 of the Strategy for the Rental Sector commits to examining the treatment under the Nursing Homes Support Scheme’s financial assessment of income from the rental of a person’s principal private residence where they move into long-term residential care.  My Department is currently engaging with the Department of Health in the matter with a view to formulating a joint approach.

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