Can I deduct care-home fees for a parent or grandparent?

IRD’s guidance allows the deduction under Salaries Tax and Personal Assessment for your or your spouse’s qualifying parent or grandparent. The dependant must be aged 60 or above at some time during the relevant year, or eligible to claim an allowance under the Government’s Disability Allowance Scheme. The guide specifies licensed or exempt elderly or disability residential homes, and the stated category of exempt scheduled nursing home. Check the actual establishment’s status rather than relying on its marketing description. [C1, C3]

The deduction concerns residential care expenses actually paid by you or your spouse, not an assumed market fee or all support given to a parent. The guide lists an annual ceiling of HK$100,000 for 2025/26 and HK$110,000 from 2026/27 onwards. These are deduction ceilings, not cash refunds. Match receipts and payment records to the correct assessment year before calculating a claim. [C1]

Eligible family members must agree who claims for the same dependant and year. IRD’s FAQ says that without agreement no deduction is allowed. The guide also prevents combining the residential care deduction with dependent parent or grandparent allowances for that same dependant and year, including through different claimants. Do not split a family bill and assume each payer receives a separate full entitlement. [C1, C2]

IRD’s return guide requires you to exclude any amount subsequently reimbursed by any person or organisation. Keep care-home receipts, payer records and a breakdown of subsidies, insurer payments and reimbursements. Its FAQ denies the deduction where CSSA fully pays the fees and the taxpayer only supports other living costs. Ask a tax adviser or IRD how to apply the payment and reimbursement rules to your arrangement; do not claim the gross invoice automatically. [C2, C3]

Can a grandparent’s fees qualify?

Yes, subject to the relationship, dependant, home and payment conditions. [C1]

Does every home calling itself a care home qualify?

No. Check the licensing or exemption categories specified in IRD’s guide. [C1]

Can I claim fees I did not pay?

The guide requires expenses actually paid by you or your spouse. [C1]

Can siblings each claim for the same dependant?

Eligible claimants must agree who claims; no agreement means no deduction. [C1, C2]

Can another relative claim dependent parent allowance too?

Not for the same dependant and year where the residential care deduction is granted. [C1]

Does paying other costs qualify when CSSA pays all home fees?

IRD’s example says no care-expense deduction; a separate dependant allowance may be considered if its conditions are met. [C2]

Does a private insurer’s payment settle the deductible amount?

Exclude amounts subsequently reimbursed by any person or organisation. Ask a tax adviser how the rule applies to your insurer’s payment arrangement. [C3]

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General information, not advice.