Employed person taking care of an incapacitated individual

Section 467 TCA 1997 provides for a deduction where an individual (or his or her spouse/civil partner) employs a person (including a person whose services are provided by or through an agency) to take care of either -

(a) himself/herself or his or her spouse or civil partner who is totally incapacitated by reason of physical or mental infirmity; or

(b) a relative of the individual or of the individual’s spouse or civil partner who is totally incapacitated by reason of physical or mental infirmity.

With effect from 1 January 2015, the maximum tax relief available to a person who employs a carer to take care of an incapacitated individual has been increased from €50,000 to €75,000. The relief is provided for in section 467 of the Taxes Consolidation Act 1997. The increase in the relief was introduced through section 12 of Finance Act 2014. Tax and Duty Manual Part 15.1.20 has been amended to reflect this change.

29 January 2015