As I indicated in my Budget 2023 address, approximately 400,000 persons are expected to be eligible to claim the proposed rent tax credit in 2023.
As a precise figure for the number of eligible tenants for the rent credit is currently unavailable from the Residential Tenancies Board (RTB), an estimate was arrived at using the best available data, which is published by the CSO and relates to Jan – June 2021. That release put the number of people deemed to be in the rental sector (excluding social housing tenants) at just over 600,000. Importantly, due to the method by which the data is collected (PPS numbers), the total is deemed to be overwhelmingly comprised of adults, as well as an underestimate of the actual number of people renting.
There are just over 100,000 people in supported tenancies (HAP, RAS, AHBs). When these are excluded the number of eligible tenants falls to c. 500,000. Further, according to the CSO, some 75 per cent of tenants in their dataset have employee, self-employed or director income, which would allow them to claim the relief where the other conditions attached to the credit are met. That brings the estimated number of eligible tenants to just under 400,000. Given the acknowledged underestimate of the base figure and the need for caution given the huge uncertainties around the data, an estimate of 400,000 was deemed an appropriate figure to use to cost this measure.
Subject to a number of conditions being met, the rent tax credit will be available in respect of rent paid during the course of the 2022 year of assessment and subsequent years. I am informed by Revenue that taxpayers will be required to complete an Income Tax Return in order to make a claim in respect of rent paid during the 2022 year of assessment.
Income Tax Returns for the 2022 year of assessment will be available for completion and submission in early January 2023. Further details in relation to the information and supporting documentation taxpayers will be required to provide when making a claim in respect of rent paid during 2022 will be published to the Revenue.ie website in early January 2023. Details in relation to the claim process for rent paid during the 2023 and subsequent years of assessment will also be published in due course.
