Dáil Éireann Debate, Thursday - 22 June 2023
132. Deputy Brendan Smith asked the Minister for Finance if he will ensure tax relief for parents in respect of accommodation costs for students attending further or higher education colleges is applicable in respect of all students, whether studying in this jurisdiction or elsewhere; and if he will make a statement on the matter. [30144/23]
Amharc ar fhreagra155. Deputy Brendan Smith asked the Minister for Finance if he will amend the conditions applicable to eligibility for the rental tax credit for parents of students in relation to accommodation costs while attending further or higher education college to include students studying outside of this jurisdiction; and if he will make a statement on the matter. [30145/23]
Amharc ar fhreagraI propose to take Questions Nos. 132 and 155 together.
The Finance Act 2022 introduced the Rent Tax Credit, which is provided for in s. 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.
In relation to the question of parents paying rent for their children who are studying and in a tenancy outside the State, the purpose behind the rent tax credit is to assist as part of the overall response to the accommodation shortage in the private rented residential sector within the State. More specifically, the aim is to provide some financial assistance to renters in that particular sector who may face high rental costs and who do not receive any other housing supports from the State. As such, the eligibility criteria for the credit specify that the rental property concerned must be a residential property located in the State.
I have no plans, at present, to propose changes to this element of the credit nor to provide specific tax relief in respect of accommodation costs for students pursuing further or higher education outside of the State. However, the operation of the Rent Tax Credit will continue to be closely monitored by my Department in conjunction with Revenue and the question of whether any further adjustments are needed will be considered in the context of the Budget and Finance Bill processes later this year.
Full details of the conditions that apply are set out in the relevant Tax and Duty Manual (Part 15-01-11A) available on the Revenue website at the following link:
www.revenue.ie/en/personal-tax-credits-reliefs-and-exemptions/land-and-property/rent-credit/index.aspx.
