James Lawless (Kildare North, Fianna Fail)
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204. To ask the Minister for Health the reason deductions for maintenance, letting agents and other costs on a family home which is used as security on the nursing homes support scheme but let to a tenant to provide some income are not taken into account in the same way that the Revenue Commissioners take such deductions into account for taxation purposes; and if he will make a statement on the matter. [29721/18]

Jim Daly (Cork South West, 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. The scheme is provided for by the Nursing Homes Support Scheme Act 2009. Participants contribute to the cost of their care according to their income and assets while the State pays the balance of the cost. The scheme aims to ensure that long-term nursing home care is accessible and affordable for everyone and that people are cared for in the most appropriate settings.

Rental income whether arising in the State or otherwise must be included in the calculation of an applicant’s income. Under Part 3 of the Nursing Homes Support Scheme Act 2009, income tax and levies required by law to be paid are included as an allowable deduction on income for the purposes of assessing the contribution to care. Expenses relating to rental income are not deducted when assessing an applicant’s income contribution.

The Nursing Homes Support Scheme Act 2009 does not provide for deductions to be made from gross rental income for expenses relating to general maintenance. These expenses are not covered under the definition of ‘allowable deduction’ as set out at Part 3 Section 1 of the Nursing Homes Support Scheme Act 2009.

With regard to letting agents fees,the expenses paid by the landlord to the agent are not deemed to be an allowable deduction on rental income for the purposes of the scheme. The amount of rent received from the tenant is the amount that is considered for the purposes of the financial assessment under the scheme. The agent is acting on behalf of the landlord and if any amount of the rental income is used to pay for expenses/fees by the agent, it is done so on the instruction of and on behalf of the landlord/applicant under the scheme.

Where an applicant for the scheme is in receipt of income from rentals, documentary evidence in the form of either a Revenue End of Year Tax Statement or a copy of the rental agreement is requested by the Nursing Homes Support Scheme Office.