Nursing Homes Support Scheme (Amendment) Act 2021
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Amendment of Part 3 of Schedule 1 to Principal Act | ||
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31. Part 3 of Schedule 1 to the Principal Act is amended— | ||
(a) in paragraph 1— | ||
(i) by the substitution of the following definition for the definition of “family successor”: | ||
“‘family successor’ means a person appointed under section 14A, 14F, 14G, 14H, 14K or 14L;”, | ||
(ii) in the definition of “farm”, by inserting “, and a reference to a farm includes a reference to part of a farm” after “all residential property”, | ||
(iii) by the substitution of the following definition for the definition of “relevant business”: | ||
“‘relevant business’ means— | ||
(a) the business or an interest in a business carried on by a sole trader or by a partnership, including any land, building, machinery or plant used wholly or mainly for the purpose of the business, or | ||
(b) where a business is carried on by a company, the unquoted shares in or securities of the company, | ||
and a reference to a relevant business includes a reference to part of a relevant business;”, | ||
(iv) by the insertion of the following definitions: | ||
“‘proceeds of sale’ has the meaning assigned to it by paragraph 10D(d); | ||
‘proceeds of sale deductible amount’ means, subject to paragraphs 10A to 10D— | ||
(a) in the case where, following the sale of the person’s interest in a principal residence— | ||
(i) the person or his or her partner purchases an interest in a principal residence, and | ||
(ii) the purchase price of the principal residence is less than the proceeds of sale, | ||
an amount equal to the difference between the purchase price and the proceeds of sale, | ||
(b) in the case where, following the sale of the person’s interest in a principal residence— | ||
(i) the person or his or her partner acquires an interest in a principal residence for no consideration, or a relevant asset of the relevant person or his or her partner becomes the principal residence, and | ||
(ii) the estimated market value of the principal residence (less any borrowings referred to in paragraph (c) of the definition of ‘allowable deduction’ which relate to the principal residence) is less than the proceeds of sale, | ||
an amount equal to the difference between the estimated market value of the principal residence (less any borrowings referred to in paragraph (c) of the definition of ‘allowable deduction’ which relate to the principal residence) and the proceeds of sale, or | ||
(c) in any other case, an amount equal to the proceeds of sale; | ||
‘purchase price’ has the meaning assigned to it by paragraph 10D(d);”, | ||
and | ||
(v) in the definition of “transferred income”, by the insertion of “income earned by a family successor in the course of running a family asset or” after “but does not include”, | ||
(b) in paragraph 6, by the substitution of “Subject to paragraph 6A, the” for “The”, | ||
(c) by the insertion of the following paragraphs after paragraph 6: | ||
“6A. (a) Where paragraph 6 applies in relation to a person who is a member of a couple, the reference in that paragraph to the interest of the person shall be construed as a reference to the interest of the person and the interest (if any) of the other member of the couple. | ||
(b) Where the partner of a person who has or (in the case of a transferred asset) had an interest in a principal residence does not have an interest in the principal residence concerned he or she shall, for the purposes of paragraph 6, be deemed to have or (in the case of a transferred asset) be deemed to have had an interest in that principal residence. | ||
6B. (a) Subject to subparagraphs (b) and (c), where a determination is made under section 14C(2)(a) or 14M(3) in respect of a person who has or (in the case of a transferred asset) had an interest in a particular family asset and that determination has not been revoked in so far as relating to that particular family asset, the interest of the person in the particular family asset shall not be, or shall cease to be, a relevant asset with effect from the date specified in the determination. | ||
(b) Where subparagraph (a) applies in relation to a person who is a member of a couple, the second reference in that subparagraph to the interest of the person shall be construed as a reference to the interest of the person and the interest (if any) of the other member of the couple. | ||
(c) Where the partner of a person who has or (in the case of a transferred asset) had an interest in a particular family asset does not have an interest in the particular family asset concerned he or she shall, for the purposes of subparagraph (a), be deemed to have or (in the case of a transferred asset) be deemed to have had an interest in that particular family asset. | ||
6C. (a) Subject to subparagraphs (b) and (c), subparagraph (d) applies only in a case where a person (in this paragraph referred to as the ‘relevant person’) was a member of a couple, and— | ||
(i) paragraph 6B applies to the relevant person in relation to a particular family asset, | ||
(ii) a family successor was appointed in respect of the other member of the couple (in this paragraph referred to as the ‘other member’) in relation to the same particular family asset, and | ||
(iii) a repayment event has not occurred in respect of either the relevant person or the other member in relation to that particular family asset. | ||
(b) Subject to subparagraph (c), and other than in a case where both members of a couple are receiving care services on the coming into operation of section 31 (b) of the Act of 2021, subparagraph (d) shall only apply where a family successor was appointed in relation to the particular family asset in respect of the second member of the couple to receive care services before the date by which that member of the couple received any combination of relevant services for a period of one year (which period need not be continuous). | ||
(c) Where— | ||
(i) the relevant person received relevant services before the coming into operation of section 31(b) of the Act of 2021, and | ||
(ii) a family successor was not appointed in respect of the relevant person in relation to the particular family asset by the date of death of the other member, | ||
subparagraph (d) shall apply only if the relevant person made an application for the appointment of a family successor in relation to the particular family asset within the first three months following the death of the other member. | ||
(d) The total of the amounts of the assessed weekly means under this Act which relate to the particular family asset, arising pursuant to the financial assessment relating to the other member and the financial assessment relating to the relevant person, when aggregated, shall not exceed the relevant amount determined under subparagraph (e), and on that threshold being reached, notwithstanding any other provision of this Schedule, the particular family asset shall cease to be a relevant asset. | ||
(e) The relevant amount referred to in subparagraph (d) shall be the amount referred to in subparagraph (f)(i) or, where any of clauses (ii), (iii) or (iv) of subparagraph (f) apply, the relevant amount referred to in subparagraph (d) shall be the aggregate of the amount referred to in subparagraph (f)(i) and the additional amount referred to in such other clauses of subparagraph (f) as apply. | ||
(f) (i) The amount is 22.5 per cent of the relevant value in respect of the relevant person. | ||
(ii) Where the date specified in the determination under section 14C(2)(a) in respect of the relevant person in relation to the particular family asset is later than the date by which the relevant person received any combination of relevant services for a period of 3 years (which period need not be continuous), the additional amount is 3.75 per cent of the relevant value in respect of the relevant person per annum, prorated for the relevant period. | ||
(iii) Where a determination was made under section 14C(2)(a) in respect of the other member in relation to the particular family asset and the date specified in that determination is later than the date by which the other member received any combination of relevant services for a period of 3 years (which period need not be continuous), the additional amount is 3.75 per cent of the relevant value in respect of the other member per annum, prorated for the relevant period. | ||
(iv) Where a determination was not made under section 14C(2)(a) in respect of the other member in relation to the particular family asset, and the other member received any combination of relevant services for a period of at least 3 years (which period need not be continuous), the additional amount is 3.75 per cent of the relevant value in respect of the other member per annum, prorated for the relevant period. | ||
(g) In this paragraph— | ||
‘relevant period’ means— | ||
(a) where subparagraph (f)(ii) applies, the period between the date by which the relevant person received any combination of relevant services for a period of 3 years (which period need not be continuous) and the date specified in the determination under section 14C(2)(a) in respect of the relevant person in relation to the particular family asset; | ||
(b) where subparagraph (f)(iii) applies, the period between the date by which the other member received any combination of relevant services for a period of 3 years (which period need not be continuous) and the date specified in the determination under section 14C(2)(a) in respect of the other member in relation to the particular family asset; | ||
(c) where subparagraph (f)(iv) applies, the period between the date by which the other member received any combination of relevant services for a period of 3 years (which period need not be continuous) and the date of death of the other member; | ||
‘relevant services’ means— | ||
(a) care services (including any care services received before the coming into operation of section 5 of the Act of 2021), | ||
(b) transitional care services within the meaning of section 13, | ||
(c) services in a nursing home which services would, if they had been provided after the coming into operation of the definition of ‘approved nursing home’ in section 3, have come within the meaning of the definition of ‘long-term residential care services’ in section 3; | ||
‘relevant value’ means the estimated market value of the particular family asset at the date of valuation of the particular family asset in connection with the first financial assessment of the relevant person or the other member, as the case may be, less allowable deductions applicable to that asset.”, | ||
(d) by the deletion of paragraphs 7 to 9, and | ||
(e) by the insertion of the following paragraphs after paragraph 10: | ||
“10A. (a) Subject to paragraphs 10B to 10D, a person (in this paragraph and paragraphs 10B to 10D referred to as the ‘relevant person’) shall be entitled to the proceeds of sale deductible amount where the relevant person or his or her partner sells (whether before or after the commencement day) the interest of the relevant person in a principal residence and the relevant person is receiving or has received (whether before or after the commencement day)— | ||
(i) care services, | ||
(ii) transitional care services within the meaning of section 13, | ||
(iii) services in a nursing home which services would, if they had been provided after the coming into operation of the definition of ‘approved nursing home’ have come within the meaning of the definition of ‘long-term residential care services’, or | ||
(iv) any combination of the services referred to in clauses (i) to (iii), | ||
for a period of 3 years (which period need not be continuous). | ||
(b) Where, but for this subparagraph, the relevant person would be entitled to the proceeds of sale deductible amount in respect of a period occurring before the commencement day, the relevant person shall not be so entitled and shall instead, by virtue of this subparagraph, be entitled to the proceeds of sale deductible amount with effect from the commencement day. | ||
(c) In this paragraph, ‘commencement day’ means the day on which section 31(d) of the Act of 2021 comes into operation. | ||
10B. (a) Where paragraph 10A applies in relation to a relevant person who is a member of a couple, a reference in that paragraph to the interest of the relevant person shall be construed as a reference to the interest of the person and the interest (if any) of the other member of the couple. | ||
(b) Where the partner of a person who has or (in the case of a transferred asset) had an interest in a principal residence does not have an interest in the principal residence concerned he or she shall, for the purposes of paragraph 10A, be deemed to have or (in the case of a transferred asset) be deemed to have had an interest in that principal residence. | ||
10C. Paragraph 10A shall apply only where— | ||
(a) the principal residence is situated within the State, and | ||
(b) the sale of the interest in the principal residence is completed after the relevant person begins receiving any of the services referred to in clauses (i) to (iii) of paragraph 10A(a). | ||
10D. (a) Where a relevant person is entitled to the proceeds of sale deductible amount under paragraph 10A and the relevant person or his or her partner purchases an interest in a principal residence— | ||
(i) if the purchase price is less than the proceeds of sale, paragraph 6 shall apply in relation to the interest in the principal residence and the relevant person shall be entitled to the proceeds of sale deductible amount under paragraph (a) of the definition of ‘proceeds of sale deductible amount’, and | ||
(ii) if the purchase price is equal to or greater than the proceeds of sale, paragraph 6 shall apply in relation to the interest in the principal residence and the relevant person shall no longer be entitled to the proceeds of sale deductible amount under paragraph 10A. | ||
(b) Where a relevant person is entitled to the proceeds of sale deductible amount under paragraph 10A and the relevant person or his or her partner acquires an interest in a principal residence for no consideration— | ||
(i) if the estimated market value of the principal residence (less any borrowings referred to in paragraph (c) of the definition of ‘allowable deduction’ which relate to the principal residence) is less than the proceeds of sale, paragraph 6 shall apply in relation to the interest in the principal residence and the relevant person shall be entitled to the proceeds of sale deductible amount under paragraph (b) of the definition of ‘proceeds of sale deductible amount’, and | ||
(ii) if the estimated market value of the principal residence (less any borrowings referred to in paragraph (c) of the definition of ‘allowable deduction’ which relate to the principal residence) is equal to or greater than the proceeds of sale, paragraph 6 shall apply in relation to the interest in the principal residence and the relevant person shall no longer be entitled to the proceeds of sale deductible amount under paragraph 10A. | ||
(c) Where a relevant person is entitled to the proceeds of sale deductible amount under paragraph 10A and a relevant asset of the relevant person or his or her partner becomes a principal residence— | ||
(i) if the estimated market value of the principal residence (less any borrowings referred to in paragraph (c) of the definition of ‘allowable deduction’ which relate to the principal residence) is less than the proceeds of sale, paragraph 6 shall apply in relation to the interest in the principal residence and the relevant person shall be entitled to the proceeds of sale deductible amount under paragraph (b) of the definition of ‘proceeds of sale deductible amount’, and | ||
(ii) if the estimated market value of the principal residence (less any borrowings referred to in paragraph (c) of the definition of ‘allowable deduction’ which relate to the principal residence) is equal to or greater than the proceeds of sale, paragraph 6 shall apply in relation to the interest in the principal residence and the relevant person shall no longer be entitled to the proceeds of sale deductible amount under paragraph 10A. | ||
(d) In this paragraph— | ||
‘proceeds of sale’ means an amount equal to the consideration received by the relevant person or his or her partner on the sale of the interest in a principal residence after the discharge of all mortgages and other liabilities relating to the sale; | ||
‘purchase price’ means an amount equal to the consideration paid by the relevant person or his or her partner on the purchase of an interest in a principal residence (including the cost of any liabilities relating to the purchase) less any borrowings referred to in paragraph (c) of the definition of ‘allowable deduction’ which relate to the principal residence.”. |