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A couple means married, civil partners, or living together as a couple for at least three years. A couple is assessed on half of everything.
The three-year cap counts from this date, not from the date Fair Deal was approved.
Renting the home out while they are in care
Since 1 February 2024, rent from the person’s own home is not counted at all in the Fair Deal assessment. Before that the HSE took 40% of it. Now the person keeps 100% of the net rent, and the home itself is still counted as an asset in the normal way, for three years at most.
- It only applies to the principal private residence, the home they lived in before going into care. Rent from any other property is still counted as income: 80% of it for a single person, 40% for one of a couple.
- You must tell the Nursing Homes Support Office within 10 working days of letting it, and apply for the disregard with the HSE’s Principal Private Residence Rental Income form, with the RTB registration, the tenancy agreement and the latest Revenue notice of assessment.
- The rent is still taxable income for the person, with the usual landlord obligations: RTB registration, a tax return, and the tenant’s rights.
- If the person lacks capacity, whoever signs the lease needs authority to do so: an attorney under a registered enduring power, or a decision-making representative whose order covers property. See the court route.
The three-year cap, in plain terms
The home is counted for the first three years in care at 7.5% of its value a year (3.75% for one of a couple). After three years it drops out of the assessment altogether, automatically. So the most that is ever charged against the home is 22.5% of its value, or 11.25% for one of a couple, however long the person stays in care.
The cap applies whether or not the nursing home loan is taken. With the loan, the home’s share is paid by the HSE each week and recovered from the estate later. Without it, the family pays the home’s share week by week from the person’s own funds.
Selling the home during care
Many families assume that selling turns the home into cash and loses the cap. Since 20 October 2021 that is no longer true: the proceeds of selling the home also qualify for the three-year cap, so the sale does not add years of contributions. Three things change on sale:
- Tell the office within 10 working days. The assessment is redone with the net proceeds in place of the house.
- If a nursing home loan was taken, it becomes repayable because the charged property has been sold. Ask the office for the repayment figure and date before completing; the usual period is six months from the sale.
- The money has to go somewhere. Interest it earns is income and is counted. Money given away counts as if still owned for five years. Money spent on the person’s care or genuine needs reduces the assets from the next review.
A farm or business is different: if it is sold, the proceeds are counted as cash assets even after the three-year cap. See farms and businesses.
Questions families ask
Mam went into care in 2024 and we have just been approved. When does the cap end?
Three years from the date she entered long-term care, not from the approval date. If she entered care on 1 March 2024, the home stops being counted from 1 March 2027. Enter the date above to see it.
Is it better to rent or to sell?
Fair Deal is now neutral on rent: none of it is counted. Selling does not lose the cap either. The decision is about the family, the house and tax, not the scheme. Rent is taxed as income; a sale by the person themselves is usually free of capital gains tax if it was their main home. Talk to an accountant before deciding.
Does a spouse still living in the house change anything?
The house is still counted, at 3.75% a year for the person in care. If the nursing home loan is taken, repayment can be deferred while the spouse, or certain relatives, still live there. Rent is not relevant if the spouse lives in it.
What if the house is in joint names with a son or daughter?
Only the person’s share is counted. If they own half, half the value goes into the assessment. Property transferred in the five years before the application is counted as if still owned.
Do we have to pay the home’s share every week?
Only if the loan is not taken. The weekly figure above shows what it is. Most families take the loan so nothing is paid on the home until after death, when it is settled from the estate.