Reclaiming the cost of care

A recent decision of the Court of Protection by Senior Judge Lush has confirmed the Court is prepared to agree to make gratuitous care allowances where care is provided by relatives and to set out the basis on which these are calculated.  The case of Re HC [2015] EWCOP29 sets out the criteria the Court of Protection would use.  It takes the commercial cost of care as a ceiling and reduces it by 20% to take account of the voluntary element.  This takes account of HMRC’s view that payments to family members are voluntary rather than part of their income so they will be not be subject to income tax at the basic rate.  The Court in this case retrospectively approved the payments made to the Deputy and his sister to cover the care services they had provided and ordered that future payments could be index linked in accordance with the Care Workers and Home Carers Code under the annual survey of hours and earnings.  If you would like any further information please contact Trevor Price on 01768 862007.