Section 473 of the Taxes Consolidation Act, 1997, provides tax relief, at the standard rate, to individuals for rent paid for private rented accommodation which is their sole or main residence. The level of rent qualifying for relief under section 473 depends on an individual's marital status and age.
For those aged under 55 years of age, the maximum level of rent on which income tax relief can be claimed is €1,270 per annum single and €2,540 per annum widowed/married. For those aged 55 years and over the maximum level of rent paid on which tax relief can be claimed is €2,540 per annum single and €5,080 per annum widowed-married.
The relief is claimed by completion of a form rent 1. Any claim by the individual for relief under this section must be accompanied by a receipt or acknowledgement from the landlord in respect of the rent paid. The information obtained from the form regarding landlords is examined and used as part of Revenue's ongoing audit and investigation programmes.
The cost of rent relief for the year ended 31 December 2001 is estimated to be €25.5 million. This compares with an estimate of €18.3 million for the year ended 5 April 2001 and €13 million for the year ended 5 April 2000.
As regards a comparison between this cost and the tax take from landlords, I would refer the Deputy to my reply to Parliamentary Question Ref No. 15581/02 of 9 October 2002 in that connection. The position is that, while the yield from rental income can be broken down between individuals and companies, it is not possible to distinguish between income from private rental accommodation and other accommodation. For the year ended 5 April 2000, the last year for which this information is available, the estimated tax yield was €137 million from companies and €80 million from individuals.