Do you have plans to take your mother, father-in-law or both into your home? Or do you have the desire to place a self-contained unit or a luxury garden house in your yard so that it can be lived in? If so, you must be curious to know what options are available to you and the tax implications.
Mantel care home
A sheltered housing unit is a self-contained temporary residential unit standing in the yard of the main dwelling. This can be, for example, a luxury garden house or a temporarily placed care unit. The informal carer lives in the main house and the carer lives in the separate informal care home. When the informal care ends, the informal care home may no longer be used. A licence is, subject to conditions, no longer necessary in most cases since November 2014. However, the rules of the Building code.
Kangaroo home
A kangaroo house is a combination of two independent living spaces under one roof. Each living space may have its own entrance and facilities, but they may also have a joint entrance. In principle, the living spaces keep the same house number and the residents are registered at the same address, but this can also be arranged differently through a division. However, permission must be sought from the municipality for this. It must also be shown that there is a care relationship with (mother-in-law) or/and father-in-law.
Brief outline of tax implications informal care home and kangaroo home
| Impact | Mantel care home (temporary!) | Kangaroo home |
| WOZ value | Since 2017, it has been determined that a home for informal care does not count towards the WOZ valuation. | If the user has the right (right to use and occupy) to use the part of the property and live there, while the person does not own the property, it should be classified as a separate WOZ property. |
| Expenses deductible | No, it is an investment in a temporary home. After the informal care stops, the home must be returned to its original state. | The costs incurred to renovate the other user's living space are not deductible because this part does not (no longer) qualify as an owner-occupied dwelling. This part of the property moves from box 1 to box 3 with possible tax consequences. |
| Mortgage rate | Interest paid for a mortgage taken out for the temporary unit is not deductible. | The mortgage interest paid on the mortgage for the residential part of the other user, is not deductible, as this part does not qualify as owner-occupied property. |
| Box 3 | The value of a temporary care home does not fall into Box 3. | The part of the house where (mother-in-law or father-in-law) will live falls into Box 3 as well as the corresponding debt. |
Consequences tax partnership, allowance partnership
You can live with several people at the same address through a carer or kangaroo home. You can only be a tax partner with one person. If this is and remains your spouse, this is not a problem. However, if you cohabit as a single person with your single mother or father, the consequences as tax partners can be significant.
If you have also become an allowance partner as a result of cohabitation, the incomes must be added together for allowance purposes. This may result in less or no entitlement to housing benefit, healthcare benefit and/or child budget. It may also affect your entitlement to the single parents' tax credit.
AOW benefit, Anw benefit/pension
The amount of benefits depends on the living situation of the beneficiary. For AOW recipients who were single and, as a result of the changed situation, have started living together with son or daughter who is unmarried and therefore run a joint household, this will affect the level of AOW benefit. The right to an Anw benefit may also lapse if an entitled person starts living together for more than six months. In addition, it may also affect the level of your pension benefit.
If you have become curious about the specific implications in your own situation, contact one of our advisers.