Can I claim tax relief for an insured disabled relative?

IRD’s guide covers a disabled spouse, child, brother, sister, parent or grandparent maintained by you or your spouse, excluding a spouse living apart from you. The relationship and maintenance conditions still matter even where a relative has an insurance payout. Start with the relevant dependant category rather than treating every relative or every payment as qualifying. Ask a tax adviser about adoption, separation or unusual family arrangements. [C1]

The dependant must be eligible to claim an allowance under the Government’s Disability Allowance Scheme at some time in the relevant year. That is the public-scheme test specified by IRD, not whichever definition a private policy uses. IRD explains that different certifying bodies may apply different criteria. A private insurance settlement letter alone should therefore not be treated as sufficient evidence of this tax condition. [C1, C2]

IRD says eligibility can matter even if the relative did not actually claim the public allowance or chose Old Age Living Allowance instead. For a review, its FAQ describes a scheme file reference where applicable, or the required medical assessment report under the public-scheme criteria. Confirm the acceptable certification route with IRD; do not replace it with an insurer’s claim assessment or a general disability card. [C2]

Keep the relevant year’s relationship, maintenance and disability-eligibility evidence together. IRD’s return guidance explains that this allowance can be additional to specified dependant allowances or the elderly residential care expenses deduction; each underlying claim still has its own conditions. Have a tax adviser check the applicable category, family claims and any insurance-funded support arrangement before submitting. This page does not determine your individual entitlement. [C1, C2]

Does a disability insurance payout prove eligibility?

No. Apply the public-scheme eligibility and evidence requirements specified by IRD. [C1, C2]

Can supporting any relative qualify?

No. Check the listed relationships and the maintenance requirements for the relevant category. [C1]

Must the dependant actually receive the public allowance?

IRD does not reject a claim solely because an eligible dependant did not claim that allowance. [C2]

Can Old Age Living Allowance prevent the tax claim?

Choosing that allowance does not itself remove the need to establish disability-scheme eligibility; IRD describes an evidence route and does not refuse the claim solely because that allowance was chosen. [C2]

Is a disability registration card sufficient?

IRD says another authority’s card cannot replace the required public-scheme medical evidence. [C2]

Can the allowance accompany residential care relief?

The guide lists elderly residential care expenses among the reliefs alongside which it may be granted, subject to conditions. [C1]

Who should check an insurance-funded support arrangement?

Ask a tax adviser to apply the maintenance requirements to the actual payments and evidence. [C1, C2]

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General information, not advice.