Fair Deal Scheme, Farmers & Private Businesses
What does the Fair Deal Scheme mean for farmers and private businesses? The government-funded nursing home support scheme that is commonly referred to as the Fair Deal Scheme is continuing to evolve based on the needs of the people it was designed to support. This growing complexity whilst improving the ultimate value of the scheme, to the participants, inevitably succeeds in making the scheme more complex and difficult to navigate for everybody involved. This is why our new company Fair Deal Advisors is continuing to provide our service to an increasing number of people every week.
The Finance Bill is now expected to confirm that the 7.5% of the value of farmland and privately owned businesses, that is liable to be contributed towards nursing home fees, will in the future be capped to a maximum of only 3 years from 2019 onwards.
This is a very significant change to the benefit of the Fair Deal Scheme for those families for whom such assets are a relevant factor in calculating the personal nursing home fee contribution that is correctly due for payment. At present such families are required to submit a valuation of the family farmland or family business and to contribute 7.5% of the value of such assets for an unlimited time period up to the date of death of the nursing home resident (these fees may be deferred under certain circumstances).
Next Year Onward
In such cases where the nursing home resident enjoys a reasonably long tenure in the nursing home that was funded through the Fair Deal Scheme, the eventual demand by Revenue for the full reimbursement of the 7.50% per annum of the value of the family farm or family business assets can prove to be a devastating liability on the farm or business on the day that repayment of this loan falls due.
From next year, not only will such fees be included in the Fair Deal deferred loan scheme arrangement, but the annual contribution will be capped to only 3 years, which is exactly the same limited time period that is applicable to the family home value. Fair Deal Advisors Limited is working with clients to assist them in completing their respective Fair Deal Scheme applications bearing in mind these substantial pending changes to the scheme contribution rules.
Please contact Fair Deal Advisors Ltd. on 01-5563500 or alternatively at [email protected] if you have any queries on the issues raised in this article.