Dáil Éireann Debate, Wednesday - 17 January 2024
336. Deputy Patrick Costello asked the Minister for Finance if, given the ongoing housing crisis and the precarious nature of many renting arrangements, renters in non-registered tenancies can access the renter’s credit; and if he will make a statement on the matter. [57329/23]
Amharc ar fhreagra337. Deputy Bríd Smith asked the Minister for Finance if renters in unregistered tenancies will remain ineligible for the rent tax credit; if he will acknowledge that those in precarious rental arrangements may risk losing their tenancy if they challenge their landlord; if he will recognise that those in this position often are on low incomes and would particularly benefit from the scheme, yet based on eligibility criteria remain locked out of the scheme; if he plans to address this, in order that those who need the credit most will be included in future; and if he will make a statement on the matter. [57330/23]
Amharc ar fhreagraI propose to take Questions Nos. 336 and 337 together.
Finance 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 2023. Finance Act 2023 increased this credit to €750 per year (or up to €1,500 for jointly assessed couples) for years 2024 and 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. Unregistered tenancies may be reported to the RTB’s Registration Enforcement Unit by email to enforcement@rtb.ie .
The operation of the Rent Tax Credit will continue to be closely monitored by my Department in conjunction with Revenue.
