Rent Tax Credit
Revenue have published details of the conditions which must be met in order for an individual to be eligible to claim the new rent tax credit. This credit was introduced by the Finance Act 2022 and is available for the tax years 2022 to 2025 inclusive.
The manual also outlines the process by which the credit may be claimed.
The rent tax credit will be available for the tax years 2022 to 2025 (inclusive) and the maximum value of the credit will be €1,000 per year in the case of a jointly assessed married couple or civil partners, and €500 in all other cases.
Claims for qualifying payments made during the 2022 tax year should be made on the 2022 Income Tax Return.
A tenancy for this purpose must fall into one of the two categories outlined below.
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 and has been so registered.
2) A licence for the use of a room, or rooms, in another person’s principal private residence.
There are a number of conditions which must be met :
1. A formal claim must be made to receive the credit
2. The payment must have been made under a tenancy
3. The property concerned must be a residential property located in the State
4. The claimant must not be a "supported tenant" (This means that the claimant cannot be in receipt of State housing support such as the Housing Assistance Payment (HAP), Rent Supplement or Rental Accommodation (RAS) schemes. This is the case even if the claimant is required to make a ‘top-up’ payment in excess of the support he or she receives under a State support scheme.)
5. The landlord must not be a Housing Association or Approved Housing Body
6. The property and tenancy must not be held by a Minister of the Government or Commissioner of Public Works in Ireland in his or her official capacity.
See revenue document for further details
PAYE taxpayers should claim the rent tax credit due to them for the 2022 tax year by completing a Form 12 tax return using PAYE Services in myAccount. Form 12 tax returns for the 2022 tax year will be available for completion from the beginning of January 2023.
Access here : https://www.ros.ie/myaccount-web/sign_in.html?execution=e1s1
Register here : https://www.ros.ie/myaccount-web/register.html?execution=e2s1
Claim on Form 11
Whilst every effort has been made to ensure the accuracy of matters covered by this article, no responsibility for loss or damage occasioned by any person acting, or refraining from acting, as a result of matters above. Professional advice should always be sought before acting on any interpretation of matters covered by this article.
3 January 2023