Holly Cairns
Ceist:259. Deputy Holly Cairns asked the Minister for Finance his views on extending the tax credits for renters to include persons renting social housing and meet the financial threshold. [53272/22]
Amharc ar fhreagraTuesday, 25 October 2022
Ceisteanna (259)
Freagraí scríofa
On Budget Day, I announced a €500 Rent Tax Credit which it is proposed will be claimable in respect of rent paid in 2022 and subsequent years to end-2025The intention is that, in order for a person to be in a position to claim the credit in a year:
- the rent paid must be in respect of the person’s principal private residence;
- the person living in the rented property themselves, or their spouse/civil partner, must have paid sufficient rent and sufficient income tax to avail of the credit;
- the tenancy must be registered with the Residential Tenancies Board (RTB), but only where this is already a legal requirement.
In the context of a person who is single fully utilising the €500 tax credit, "sufficient rent" amounts to €2,500 in a year. For 2022, "sufficient income tax" amounts to €3,900 (equivalent to the aggregate 2022 value of the Personal Tax Credit, the Employee/Earned Income Tax Credit and the proposed Rent Tax Credit). For 2023, "sufficient income tax" amounts to €4,050 (equivalent to the aggregate proposed 2023 value of the Personal Tax Credit, the Employee/Earned Income Tax Credit and the Rent Tax Credit).
Parents who pay rent on behalf of their student child who is enrolled on an approved third-level course and residing in a RTB registered property will also be eligible to claim. Where the student is under 23 on 1 January of the year of their first point of entry into the course, the parent(s) will be able to claim the tax credit for the duration of that course.
As I stated in my Budget 2023 speech, the credit is specifically targeted to assist renters who do not receive other State housing supports. Renters who are in receipt of support, such as the Housing Assistance Payment or Rent Supplement or who are availing of the Rental Accommodation Scheme or cost rental arrangements, will not be eligible for the credit.