Written Answers Nos. 240-255
240. Deputy Brendan Smith asked the Minister for Finance the progress to date in reviewing and improving the disabled drivers’ and disabled passengers scheme; and if he will make a statement on the matter. [14799/23]
View answerThe National Disability Inclusion Strategy Transport Working Group (TWG), comprising members from a range of Departments, agencies and Disabled Persons Organisations, was tasked under Action 104 to review all Government-funded transport and mobility supports for those with a disability, including the Disabled Drivers and Disabled Passengers Scheme (DDS). Officials from DCEDIY led the work of the group. The NDIS TWG final report was published on 24 February 2023 and recommends that the DDS is replaced with a needs-based, grant-aided vehicular adaptation scheme, i.e. to provide direct financial assistance to individuals needing vehicle adaptations according to their needs, to meet their personal transport requirements and ultimately to facilitate independence and participation in society.
The NDIS TWG final report notes that the DDS is no longer fit for purpose. Introduced in the 1960s, the DDS has an outdated, ‘in-or-out’, medically-based policy rationale. It does not meet the needs of a significant group of those with a disability and with mobility impairments; it requires individuals to 'prove' they are sufficiently 'disabled' and any expansion of eligibility criteria will still mean some individuals will not meet the criteria. The DDS administrative and operational model is not and will never be fit-for-purpose in meeting the standards expected of a modern scheme. In addition, the DDS is significantly divergent from international best practice on almost all scheme parameters.
In conclusion, the NDIS TWG endorses the recommendation to develop a new needs-based, grant-aided vehicular adaptation scheme. However, the final report does not set out next steps. It will be a matter for Government as to how to take this matter forward.
241. Deputy Richard Bruton asked the Minister for Finance if he will outline the obligations on the banking sector to demonstrate its compliance with climate targets and other elements of the EU Green Deal; if it is expected to have a direct impact on lending decisions; and if he will make a statement on the matter. [14801/23]
View answerObligations on the banking sector related climate targets and other elements of the EU Green Deal are set out in a number of EU Directives and Regulations, some of which are in force with others being developed. These include the Taxonomy for sustainable activities, the Sustainable Finance Disclosure Regulation (SFDR), the Corporate Sustainability Reporting Directive (CSRD), as well as others.
The EU Taxonomy sets out standards by which various economic activities can be considered sustainable, and requires institutions to disclose how, and to what extent, their activities are associated with environmentally sustainable economic activities.
The SFDR, in effect since March 2021, aims to prevent greenwashing by ensuring accurate disclosure of the sustainability of investments. It applies to many financial market participants and advisors who must make disclosures on the sustainability impacts and risks of products.
The CSRD, in effect since January 2023, with reporting to begin from January 2024, is currently being transposed. Credit institutions, including banks, are required to report annually on environmental, social and governance matters, including human rights, according to mandatory EU sustainability standards.
This reporting must include descriptions of plans and actions to ensure that a company’s business models and strategy are compatible with the transition to a sustainable economy and with the limiting of global warming to 1.5°C in line with the Paris Agreement, including absolute greenhouse gas emission reduction targets for 2030 and 2050.
The European Green Bond regulation is in the final stages of reaching agreement between Council and European Parliament. When in force, it will set out the requirements that a bond must meet in order to be considered green, namely Taxonomy alignment with transparency and supervision provisions.
The Corporate Sustainability Due Diligence Directive (CSDDD) had its general approach agreed in December 2022. The proposal aims to establish a system within company law and corporate governance to address adverse human rights and environmental impacts arising from companies' own operations, their subsidiaries' operations and their supply and value chain activities. It will require companies to adopt a plan to ensure that their business model and strategy is compatible with the transition to a sustainable economy and with the limiting of global warming to 1.5°C, in line with the Paris Agreement.
Other legislation with climate elements that the banks may need to take into consideration include; the Environmental Social and Governance (ESG) Risk Disclosure Standards, the Benchmark Regulation, as well as elements within the Capital Requirements Directive (CRD IV), the Capital Requirements Regulation (CRR), and Solvency II.
This inter-linked system of sustainability legislation has been developed and agreed in recent years. It is comprehensive and requires significant efforts by companies, including those in the banking and financial services sector.
Furthermore, with regard to banks and lending, the July 2022 European Central Bank (ECB) stress test, which included Bank of America, Barclays Bank Ireland, AIB, and Citi Bank, focused on transition risk and physical risk. This included three scenarios: Net-Zero 2050, delayed transition, and hot-house world . While conclusions from the results raised concerns about banks’ long term climate risk modelling capabilities, the Irish banks were determined to have minor gaps in their plans when bench-marked against peers.
By 2024, the ECB expects institutions to be fully aligned with all supervisory expectations, as well as having reached the following milestones as a minimum:
- by the end of March 2023 at the latest, to have in place a sound and comprehensive materiality assessment, including robust scanning of the business environment;
- by the end of 2023 at the latest, to manage climate and environmental (C&E) risks with an institution-wide approach covering business strategy, governance and risk appetite, as well as risk management, including credit, operational, market and liquidity risk management;
- by the end of 2024 at the latest, to be fully aligned with all supervisory expectations, including having in place a sound integration of C&E risks in their stress testing framework and capital requirements.
The European Banking Authority (EBA) is also planning a data collection exercise of climate risk-related starting points to support the European Commission’s one-off stress testing exercise for the Fit-for-55 package. The data collection will also benefit ECB Banking Supervision, providing insights into whether banks are closing data gaps identified in the 2022 Climate risk stress test and help assess alignment of banks with the ECB report on good practices for climate stress testing.
As part of ongoing supervision activities the Central Bank of Ireland is actively engaging with institutions to ensure that Irish banks are aligned with the supervisory expectations by 2024. As noted in a recent assessment by the IMF as part of Ireland’s FSAP mission, the Irish banking system’s direct exposure to climate risks is not insignificant. Roughly 15 percent of bank non-financial corporation (NFC) loans are to sectors with a high carbon footprint and more than 20 percent of loans are to sectors exposed to high physical hazards, dominated by floods, well above the Euro Area average, suggesting heightened vulnerability of banks to both carbon tax shocks and sea level rises.
The measures I have described have a range of purposes and an impact on lending is one of these purposes: in particular, it is encouraging investors and consumers to make more sustainable decisions through science-based definitions of sustainability and with transparent reporting and disclosures of sustainability impacts and risks.
242. Deputy Robert Troy asked the Minister for Finance if he will address the delay that solicitors are having acquiring capital acquisitions certificates from the Office of the Revenue Commissioners, Capital Acquisitions Tax Unit, Government Buildings, Millennium Centre, Dundalk, County Louth. [14805/23]
View answerI am advised by Revenue that there are no delays in the processing of Capital Acquisitions Tax (CAT) certificates where all relevant information is received at the time of application. In some instances, Revenue may require additional information in support of the application and any delay in responding to those requests may lead to a delay in the processing of certificates.
Revenue have confirmed that the certificate for the person concerned originally issued to their solicitor on 23 February 2021 and was re-issued on 22 April 2022 and again on 11 January 2023. Despite several attempts, Revenue has been unable to contact the solicitor acting since the re-issuing of the certificate on the 11 January 2023 and was not made aware that it was not received.
I wish to advise that Revenue have re-issued the certificate again on 22 March 2023, by registered post, in an attempt to ensure that the certificate is received by the solicitor acting on this occasion.
Notwithstanding that the solicitor acting for the individual has been provided with contact details previously should they have any further queries, Revenue will attempt to contact the solicitor again to ensure that the certificate issued on the 22 March 2023 has been received.
243. Deputy Pearse Doherty asked the Minister for Finance the progress that has been made on the European deposit insurance scheme; and if he will make a statement on the matter. [14837/23]
View answerThe European Deposit Insurance Scheme (EDIS), is considered to be the third pillar of the Banking Union. The creation of the Banking Union was a powerful response to the 2008 Financial Crisis. The first two pillars of the Banking Union, the Single Supervisory Mechanism and the Single Resolution Mechanism, have been put in place and subject to a number of reforms to improve their effectiveness.
A well functioning system of deposit insurance, organised at the European Level, has long been recognised as an important tool for protecting depositors, safeguarding market confidence and ensuring financial stability. In this regard, in December 2021, European Leaders mandated the Eurogroup in inclusive format to agree a workplan to complete the Banking Union.
As a first step, Eurogroup Finance Ministers have agreed that work on completing the Banking Union should first focus on strengthening the frameworks for national Deposit Guarantee Schemes and the common framework for bank crisis management.
In the June 2022 Eurogroup Meeting, Ministers invited the European Commission to bring forward legislative proposals for a reformed Crisis Management and Deposit Insurance (CMDI) framework during this legislative cycle. Publication of this proposal is expected in H1 2023, and it will ensure the banking sector fully contributes to Europe's economic resilience and sustainability.
The following broad elements have been agreed to underpin the CMDI framework:
- A clarified and harmonised public interest assessment.
- Broadened application of resolution tools in crisis management, including for smaller and medium-sized banks.
- Further harmonisation of the use of Deposit Guarantee Scheme funds in crisis management, including a harmonised least-cost test to govern the use of DGS funds in crisis management.
- Harmonisation of targeted features of national bank insolvency laws to ensure consistency with the principles of the European CMDI framework.
This CMDI framework will strengthen the operation of national Deposit Guarantee Schemes and will be an important step towards implementing a common European system of deposit insurance as well as completing the Banking Union.
244. Deputy Louise O'Reilly asked the Minister for Finance the amount of debt still warehoused under the tax debt warehousing scheme; the amount of this debt per division; and if he will make a statement on the matter. [14901/23]
View answer245. Deputy Louise O'Reilly asked the Minister for Finance the amount of warehoused tax debt that that has been repaid to date; the amount of tax foregone due to companies entering liquidation or administration; the projections on the total tax that will be foregone due to liquidations or administrations; and if he will make a statement on the matter. [14902/23]
View answerI propose to take Questions Nos. 244 and 245 together.
By way of background, the Debt Warehousing scheme allows for the deferral of the payment of VAT, PAYE (Employer) and certain self-assessed income tax liabilities, including TWSS and EWSS overpayments. It provided a vital liquidity support to businesses during the COVID pandemic and continues to support businesses as they recover from the impacts of the pandemic and the current energy crisis. A significant extension to the scheme was announced in October 2022 with the commencement date for repayment of the debt extended to 1 May 2024 from the original repayment date of 1 January 2023.
I am advised by Revenue that the total debt eligible for the Debt Warehousing Scheme since its introduction is €31.9 billion, with over 250,000 businesses eligible to avail of the scheme. As at end February 2023, almost 93% of that debt has been paid, leaving a balance of €2,257 million in the warehouse for almost 65,000 individual entities. In addition, almost 2,000 warehoused customers have agreed installment arrangements for warehoused debt of €68 million using Revenue’s flexible phased payment facility.
The scheme was automatically available to businesses and individuals that are managed by Revenue’s Business and Personal Divisions. Revenue’s Business Division manages enterprises with an annual turnover less than €3 million, which accounts for the majority of business taxpayers. Revenue’s Personal Division deals with all business entities with no trade or professional income such as trusts, charities, sporting bodies.
The scheme was also available on application to larger businesses managed by Revenue’s Large Corporates and Medium Enterprises Divisions, where such businesses have been adversely impacted by COVID-19 and included a small number of individuals in Revenue’s High Wealth Division. Revenue’s Medium Enterprises Division deals with businesses with an annual Irish turnover of more than €3 million (but less than €190 million) as well as the subsidiaries/parents of such companies. Large Corporates Division deals with the largest companies with an annual Irish turnover of more than €190 million per annum.
The value of debt warehoused at the end of February 2023, broken down by Revenue Division, was as follows:
|
Division |
€m |
|
Business |
1,364 |
|
Medium Enterprises |
639 |
|
Large Corporates |
227 |
|
Personal |
21 |
|
Large cases – High Wealth individuals |
6 |
|
Total |
2,257 |
The extension announced in October 2022 means that businesses no longer have the challenge of making arrangements to repay their warehoused debt until 1 May 2024 and this significant additional time should greatly support businesses and prevent business failure. Importantly also, businesses are still able to avail of the reduced 3% interest rate from 1 January 2023, as opposed to the general interest rate of 10% when they come to pay the debt.
However, it remains a key condition of the Debt Warehousing Scheme that current liabilities are filed and paid on time. Revenue is actively engaging with businesses in the scheme to ensure they are complying with this key condition in order to retain the benefits of the scheme. Where payment difficulties arise, particularly in relation to current tax obligations, I am assured that Revenue will work proactively with businesses who engage early to resolve these payment difficulties. Revenue has a proven track record in agreeing flexible Phased Payment Arrangements to allow for the repayment of debt over a period of time.
To date, a total of 510 companies who were eligible for the warehousing scheme have been subject to liquidation with total tax debt of just over €55 million, of which €50 million had been warehoused. Revenue is not in a position to say exactly how much tax will be foregone in the future due to liquidations or administrations.
Revenue’s expectation is that the extended timeline to 1 May 2024 for entering into arrangements for repaying warehoused debt, together with flexible payment arrangements, will assist most businesses to work through any difficulties and will satisfactorily address the repayment of their tax debt, including any warehoused debt, over an acceptable period of time.
246. Deputy Louise O'Reilly asked the Minister for Finance the number of businesses that have applied for assistance under the temporary business energy support scheme to date, by county; the number of applications that have been successful, by county; the estimated value or worth of the support to date for each county, in tabular form; and if he will make a statement on the matter. [14906/23]
View answerThe Temporary Business Energy Support Scheme (TBESS) was introduced to support qualifying businesses with increases in their electricity or natural gas costs over the winter months.
Details of the scheme are set out in Finance Act 2022. The scheme provides support to qualifying businesses in respect of energy costs relating to the period from 1 September 2022 to 30 April 2023. However, subject to State aid approval, this period is to be extended to cover energy costs up to 31 May 2023. It is available to tax compliant businesses carrying on a trade or profession the profits of which are chargeable to tax under Case I or Case II of Schedule D where they meet the eligibility criteria
Businesses which are eligible for TBESS can register for the scheme via Revenue’s online service and comprehensive guidelines on the operation of the scheme are available on the Revenue website.
I am advised by Revenue of the following registrations and claims on a county by county basis as of 15 March, which is the date for which the most recent figures are available:
|
County |
All Registration applications |
Approved Registrations |
Value of Approved Claims (€m) |
|
Carlow |
391 |
380 |
0.98 |
|
Cavan |
583 |
577 |
1.21 |
|
Clare |
709 |
704 |
1.46 |
|
Cork |
3,395 |
3,350 |
6.7 |
|
Donegal |
1,169 |
1,151 |
2.25 |
|
Dublin |
5,836 |
5,678 |
17.5 |
|
Galway |
1,584 |
1,560 |
3.8 |
|
Kerry |
1,151 |
1,127 |
2.31 |
|
Kildare |
950 |
935 |
2.36 |
|
Kilkenny |
646 |
629 |
1.02 |
|
Laois |
387 |
383 |
0.64 |
|
Leitrim |
234 |
230 |
0.27 |
|
Limerick |
1,144 |
1,125 |
2.5 |
|
Longford |
281 |
276 |
0.54 |
|
Louth |
755 |
746 |
1.52 |
|
Mayo |
843 |
826 |
1.8 |
|
Meath |
970 |
957 |
2.38 |
|
Monaghan |
572 |
564 |
1.37 |
|
Offaly |
425 |
422 |
0.73 |
|
Roscommon |
339 |
335 |
0.79 |
|
Sligo |
371 |
363 |
0.77 |
|
Tipperary |
1,113 |
1,091 |
1.63 |
|
Waterford |
790 |
779 |
1.72 |
|
Westmeath |
599 |
589 |
1.18 |
|
Wexford |
951 |
935 |
1.88 |
|
Wicklow |
650 |
634 |
1.28 |
|
Total Businesses |
26,838 |
26,346 |
60.61 |
Further information on registrations and claims is available in the report published by Revenue (generally on a weekly basis) on its website at www.revenue.ie/en/corporate/information-about-revenue/statistics/number-of-taxpayers-and-returns/cost-living.aspx.
247. Deputy Holly Cairns asked the Minister for Finance the steps he is taking to assist a sporting body (details supplied) in accessing affordable insurance cover; and if he will make a statement on the matter. [15247/23]
View answer248. Deputy Darren O'Rourke asked the Minister for Finance if he is aware that an organisation (details supplied) cannot get insurance cover; the measures he is taking to address this matter; and if he will make a statement on the matter. [15300/23]
View answer249. Deputy Mick Barry asked the Minister for Finance if he will intervene with the insurance sector to ensure that steps are taken to ensure that motorcycle clubs are able to have their events insured, which is essential for the sport to continue; and if he will make a statement on the matter. [15329/23]
View answerI propose to take Questions Nos. 247, 248 and 249 together.
Government is aware that a small number of activity-related sectors are currently facing difficulty in terms of affordability and availability of insurance. We have therefore prioritised the implementation of the Action Plan for Insurance Reform, which aims to improve the cost and availability of insurance for all groups, including sporting organisations such as those involved in motorcycle racing. The third Action Plan Implementation Report, published in November, demonstrates that considerable progress has been achieved, with the vast bulk of the 66 actions contained therein now delivered or ongoing.
Both Minister of State Carroll MacNeill and I have raised this issue directly with the insurance industry, including with its representative organisation Insurance Ireland. Furthermore, officials from my Department have been in contact with a wide range of stakeholders in the motorcycle racing sector to gain an insight into the scale and scope of the issue. I understand that while events such as motorcycle test and track days continue to operate, motorcycle racing is facing difficulties with insurance availability.
It is a feature of the Irish insurance market that some smaller sectors, including motorcycle racing, have traditionally been dependent on specialist UK providers passporting into Ireland. As a consequence of the UK’s decision to leave the EU, this practice has now ended and it has become more expensive and difficult for niche underwriters from the UK to provide their products here. This has been exacerbated by the small size of some of these sectors, meaning that just one or two large or catastrophic claims can negatively impact insurance capacity for an extended period of time.
At the same time, however, work is ongoing to investigate insurance in the sporting sector as a whole, by the Department of Tourism, Culture, Arts, Gaeltacht, Sport and Media in conjunction with Sports Ireland. Accordingly, National Governing Bodies have been invited to contribute to this exercise. Officials from the Department of Finance remain in contact with their counterparts and all queries regarding this study should be directed to the Department of Tourism, Culture, Arts, Gaeltacht, Sport and Media.
In conclusion, I wish to reassure the Deputy that it is the my intention to continue to work with my Government colleagues to ensure that the implementation of the Action Plan will continue to have a positive impact on the affordability and availability of insurance for all groups, including sporting clubs and organisations.
250. Deputy Louise O'Reilly asked the Minister for Finance if the Revenue Commissioners will continue to publish the addresses of tax defaulters given the recent judgment by the European Court of Human Rights in a case, L.B. v. Hungary, concerning publication of the personal data of taxpayers; and if he will make a statement on the matter. [15330/23]
View answerI am advised by Revenue that it is aware of the recent judgment by the European Court of Human Rights in the case of L.B.v Hungaryand is considering its implications.
Revenue is legally required to compile and publish lists of certain tax defaulters. This system has been in place since 1983 and was revised most recently in Finance Act 2021, which provided for the current publication regime in section 1086A Taxes Consolidation Act 1997. The lists are compiled on a quarterly basis and published in Iris Oifigiúil within 3 months of the end of the quarter to which they relate. Revenue does not have any discretion in the decision to publish these lists; it is obliged to publish them to comply with this provision. Any change to the current publication regime would require a legislative amendment.
251. Deputy Eoin Ó Broin asked the Minister for Finance if he will outline the tax treatment of the portion of rental income retained by participants in the fair deal scheme who rent out their home while in nursing home care. [15386/23]
View answerI am advised by Revenue that rental income of participants in the Fair Deal scheme who rent out their homes while in nursing home care is taxed in the same manner as any other rental income from a residential property.
The participant will be charged to tax under Case V of Schedule D on the full amount of their rental income. The participant is entitled to deduct certain expenses from the gross rent received and is then taxed on the balance, which is the rental profit.
Income tax relief is available to participants in the Fair Deal for their nursing home fees. This relief is provided for in section 469 Taxes Consolidation Act 1997 (TCA). Nursing home expenses may be claimed under the heading of Health Expenses. The relief in respect of nursing home expenditure is allowed at an individual’s marginal rate of tax. Where an individual avails of the Fair Deal Scheme, the amount relievable is limited to the contribution towards nursing home fees made by that individual. No relief is available in respect of any amount covered by the State. Relief for nursing home fees will reduce the amount of tax payable on the individual’s income, including any income from renting out that home.
For the year in which a participant in the Fair Deal scheme moves into a nursing home, that person may be eligible for Rent a Room relief (under section 216A TCA) on any income received from renting out a room or rooms in their home. This means that, where it does not exceed the current annual limit of €14,000, no income tax is due on income obtained from that source. The €14,000 limit applies to the gross payment received for the room and for services provided with the letting.
However, Rent a Room relief will not be available for subsequent years when the individual is resident in a nursing home and no longer living in the property, because it is a requirement of that relief that the property is occupied by the individual as their sole or main residence during the tax year. That means the individual would be taxable on rental income in the normal way as outlined above.
252. Deputy Michael Ring asked the Minister for Finance what support and relief is available to support a facility (details supplied) with its increased energy costs; and if he will make a statement on the matter. [15454/23]
View answerDetails of the Temporary Business Energy Support Scheme (TBESS) are set out in Finance Act 2022. The scheme provides support to qualifying businesses in respect of energy costs relating to the period from 1 September 2022 to 30 April 2023.
The TBESS is available to tax compliant businesses carrying on a trade or profession the profits of which are chargeable to tax under Case I or Case II of Schedule D where they meet the eligibility criteria. Not for profit organisations such as charities and sporting bodies, that carry on certain activities which would be chargeable to tax under Case I or II of Schedule D but for the section 235 exemption are included in the scheme. The scheme operates on a self-assessment basis.
The TBESS applies to the metered supply of electricity and natural gas and operates by reference to bills or statements for their supply through electricity accounts or gas connections identified by the account holders own Meter Point Reference Number (MPRN) or Gas Point Reference Number (GPRN).
Where a company or not for profit organisation carries on activities on a non-commercial basis, it is unlikely that that they would be regarded as carrying on a trade that is chargeable to tax, or would be chargeable to tax, but for the section 235 exemption. Such companies and not for profit organisations would not therefore be within the scope of TBESS and would not be eligible to apply for support under the scheme.
As the Deputy will be aware neither Revenue nor I can comment directly or indirectly on the arrangements of individual persons/businesses. The entity concerned should contact Revenue directly in the first instance to determine their eligibility for the scheme.
Further details on TBESS and the relevant conditions for making a claim can be found at: www.revenue.ie/en/starting-a-business/tbess/index.aspx
253. Deputy Brendan Griffin asked the Minister for Finance if he will make the disabled persons' fuel grant available to persons who purchase electric vehicles; and if he will make a statement on the matter. [15462/23]
View answerThe Disabled Drivers & Disabled Passengers Scheme (DDS) provides relief from VRT and VAT on an adapted car, as well as an exemption from motor tax and an annual fuel grant.
Under DDS provisions, the reliefs from VRT and VAT are generous in nature amounting to up to €10,000, €16,000 or €22,000, depending on the level of adaption required for the vehicle. There is no differentiation between electric and other vehicles in terms of available VRT/VAT relief.
Section 135C(3)(b) of the Finance Act 1992 separately provides that a Category A series production electric vehicle can avail of relief of up to €5,000 on the VRT due. Thus the amount of VRT due or paid on an electric vehicle may be lower than the maximum DDS relief permitted. In such cases the VRT relief provided through the DDS will equate to the actual VRT due or paid. VAT refunds are provided regardless of the type of vehicle.
DDS Scheme recipients with a petrol or diesel vehicle may claim payment of a fuel grant. The fuel grant covers the excise tax elements of petrol, diesel and liquefied petroleum gas (LPG). It is based on a per litre rate in respect of the mineral oil taxes applying to these products. An annual maximum of 2,730 litres applies in respect of a driver or passenger, and 4,100 litres in respect of an organisation.
As electricity supplied for household use is not subject to excise tax, there is no provision under the DDS to cover electricity used to recharge electric vehicles.
254. Deputy Alan Kelly asked the Minister for Finance if he plans to invite his Polish counterpart to Dublin. [15491/23]
View answerIreland has a long-standing and excellent bilateral relationship with Poland, which is now framed within the context of our common membership of the European Union. Since my appointment as Minister for Finance, I have enjoyed meeting all of my EU counterparts, including Polish Minister for Finance Magdalena Rzeczkowska, at monthly Eurogroup and ECOFIN meetings. At present, no plans are in place for a visit to Dublin by Minister Rzeczkowska, but I look forward to further engagement with her over the coming months.
255. Deputy Holly Cairns asked the Minister for Finance the steps he is taking for persons renting accommodation from a landlord who is not registered with the Residential Tenancies Board in accessing the rent tax credit. [15497/23]
View answerFinance Act 2022 introduced the Rent Tax Credit, which is provided for in section 473B of the Taxes Consolidation Act 1997. This is an income tax credit of up to €500 per year (or up to €1,000 for jointly assessed couples) which may be claimed in respect of qualifying rent paid in 2022 and subsequent years to end-2025. Qualifying payments must be made under a tenancy.
A tenancy for this purpose is a rental arrangement which falls into one of the below categories:1. An agreement, contract or lease which is required to be registered with the Residential Tenancy Board (RTB) under Part 7 of the Residential Tenancies Act 2004. Where a rental arrangement is of a type which is required to be registered with the RTB, the landlord must have complied with this registration obligation in order for the claimant to receive the Rent Tax Credit.2. A licence for the use of a room, or rooms, in an individual's person’s principal private residence. Such rental arrangements are not generally required to be registered with the RTB under Part 7 of the Residential Tenancies Act 2004, and therefore availability of the Rent Tax Credit in such circumstances is not dependent on the tenancy being registered.Consistent with category 2 above, a person renting under a tenancy which is not required to be registered with the RTB is not required to provide an RTB registration number when claiming the Rent Tax Credit.Full details of the type of tenancies which must be registered with the RTB, and the process by which such registrations may be completed, can be found on the RTB website available at: www.rtb.ie
Responsibility for compliance with the legal obligation to register a tenancy under the Residential Tenancies Act 2004 is a matter for the RTB, and landlords should familiarise themselves with their RTB registration obligations and ensure that they have fulfilled same. Where a tenancy is registered with the RTB, claimants are requested to provide the RTB number as part of the claim process.
As part of the RTB registration process, the landlord and each tenant named on an RTB registration will receive a letter from the RTB shortly after registration. This letter will contain the number assigned to the tenancy, which can be used when claiming the Rent Tax Credit. Duplicate copies of this letter, if required, can also be requested from the RTB.
Compliance with the legal obligation to register a tenancy under the Residential Tenancies Act 2004 (as amended) is a matter for the RTB. Unregistered tenancies may be reported to the RTB’s Registration Enforcement Unit by email to enforcement@rtb.ieFurther details in respect of the tax credit, including comprehensive guidance on the full range of conditions which must be met and how to make a claim, can be found in Tax and Duty Manual Part 15-01-11A at: www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-15/15-01-11A.pdf.The operation of the Rent Tax Credit will be closely monitored by my Department in conjunction with Revenue in the coming months and the question of whether any further adjustments are needed will be considered in the context of the Budget and Finance Bill process later this year.
