The Department of Finance has opened a consultation on the "Taxation of Share Based Remuneration". This consultation is in response to the recently published Programme for Partnership Government which outlines a commitment to explore the mechanisms through which SMEs can reward key employees with share options in a tax efficient manner.
An employee is currently paying nursing home fees for his elderly mother. What tax relief is he entitled to claim in respect of these fees and how does he obtain it?
Nursing home fees qualify for tax relief at the employee's marginal (highest) rate of tax. Normally tax relief for health expenses is claimed following the end of the year on PAYE Anytime or by completing a Med 1 form. However, for PAYE taxpayers, in certain circumstances Revenue may grant tax relief during the tax year. The taxpayer should contact his local tax office with the relevant details. In order to qualify, the nursing home must provide qualified nursing care on-site on a 24 hour basis.