What the cap does
Each year in care you contribute 7.5% of the home's value (3.75% if you are one of a couple). The cap stops that after three years, so the most that can ever be charged against the home is 22.5% of its value, or 11.25% for a couple. On a €300,000 house that is €67,500 in total, spread over three years at about €433 a week, and then nothing.
The three years are cumulative
The clock counts time in care, not calendar years. If you spend a year in care, go home, and later return, the earlier year still counts. Once you have paid three years' worth, the home is out of the assessment for good.
If the house is sold
Selling the home during the three years does not reset the cap. The net proceeds of the sale are treated the same way the house was: counted for the remainder of the three years and then excluded. Selling it after the three years has no effect on your contribution at all. Renting it out is different again: since 2024 rent from the family home is not counted as income.
Farms and businesses
The cap can also apply to a family farm or business, but only where a family successor commits to running it for six years, and it must be applied for separately. Without that, the farm or business is counted at 7.5% a year for as long as you are in care. This is worth a solicitor's time.
Questions families ask
Does the cap apply to a second property?
No. Only the principal residence, and a farm or business that qualifies. Other property is counted every year.
Does the cap apply to savings?
No. Savings and investments are counted at 7.5% a year for as long as you are in care.
Do I have to pay the home portion now?
No. It can be deferred through the nursing home loan and settled from the estate after death.