A taxpayer may claim the elderly home expenses he pays for his or his spouse¡¦s parent or grandparent subject to the following conditions:

• The parent or grandparent is at least 60; or if under 60, he is eligible to claim disabled allowance.
  
  
• The expenses actually paid by the taxpayer or by his spouse in the year of assessment.
  
  
• The expenses are paid to a recognized elderly home in Hong Kong.
  
  
• The expenses cover accommodation, food, nursing care and sundry expenses but exclude those of private medical care or those of a personal nature not in the nature of residential care.
  
  
• The expenses reimibursed by Social Welfare Department cannot be claimed.

Full-year expenses are allowed when the parent reaches 60 in the year of assessment. In other words, no time apportionment of the expenses is necessary.

The maximum deduction is HK$60,000 for each parent.

No double claim for the same parent is allowed. If two or more persons claiming the deduction, they should reach an agreement as to who can get the deduction. If no such agreement is made, no one can get the deduction.

The taxpayer may claim the deduction in your tax return. If he forgets to do so, he may claim it by an objection when he receives the assessment. Even if he misses the objection deadline, he can still claim it by a Section 70A claim (because it is an omission --- to claim the deduction).

The Revenue's assessing practice on Elderly Residential Care Expenses are set out in Departmental Interpretation and Practice Note No. 36. You can read them on their homepage: click [English], [Publications], [Departmental interpretation and Practice Note].