Dáil Éireann Debate, Tuesday - 24 July 2018
225. Deputy Thomas P. Broughan asked the Minister for Finance the estimated annual cost of reintroducing tax relief on private rented accommodation; if the reintroduction of the measure is being examined; and if he will make a statement on the matter. [33488/18]
Amharc ar fhreagraTax relief on private rented accommodation was available to those paying for private rented accommodation, including rent paid for flats, apartments or houses. It did not include rent paid to local authorities. The credit was only available to persons renting on 7 December 2010. This tax credit ceased to be available after 31 December 2017.
I am advised by Revenue that, as the rent relief tax credit is in the process of being phased out (only back claims can now be processed), and no new claimants have qualified for the relief since 2010, tax returns do not provide a reliable basis for Revenue to accurately predict either the numbers of tenants that could be eligible to claim a rent credit were it to be re-introduced post 2017 for all tenants, or the degree to which potential claimants could absorb the full amount of the credit. Therefore, there is no reliable basis available to Revenue on which to estimate the potential cost of a rental tax credit reintroduction.
I am also advised by Revenue that the number who availed of the rent relief tax credit and the associated cost to the Exchequer are as follows:
|
Year |
Number of Claimants |
Cost €million |
|
2015 |
135,600 |
21.4 |
|
2014 |
143,900 |
29.5 |
|
2013 |
153,100 |
37.9 |
|
2012 |
166,400 |
48 |
|
2011 |
179,600 |
66.5 |
|
2010 |
189,000 |
82.8 |
|
2009 |
196,900 |
85.9 |
|
2008 |
222,100 |
96.5 |
|
2007 |
206,000 |
82.1 |
|
2006 |
171,800 |
64 |
|
2005 |
144,500 |
48.1 |
|
2004 |
118,500 |
33 |
It may be of assistance to the Deputy to note that, according to Census 2016 data, the private rented sector amounts to approximately 310,000 units (for comparison, in 2010 the rent relief tax credit cost €82.8 million in respect of 189,000 claimants). However, all of the individuals recorded on the Census as renting these 310,000 units may not qualify for rent relief tax credit or be able to absorb the relief in full if it were available.
