Paschal Donohoe (Dublin Central, Fine Gael) | Oireachtas source

With the permission of the Acting Chairperson, I want to draw the House's attention to an issue that came to light too late for a response to be made to it in the context of the Finance Bill 2022. It concerns the operation of the proposed rent tax credit, which is provided for in section 13 of the Bill, and the interaction of the credit with the existing statutory provisions relating to allowances for Members of the Oireachtas, Ministers of State and the Attorney General in respect of travel and accommodation expenses incurred in the performance of duties as a Member of the Oireachtas or as an officeholder.

As Members of the House will be aware from the initial announcement of the rent tax credit in my budget 2023 address, the policy intention is very clear: its availability will be limited to those who do not get any other housing support from the State. In this regard, such support is considered to include the allowances available to Members of the Oireachtas and the officeholders I have just mentioned. The Revenue Commissioners informed by Department that as matters stand at present, Members of the Oireachtas could have the entitlement to the rent tax credit in certain circumstances relating to their official duties. There is currently nothing in the draft provisions relating to the rent tax credit in the Finance Bill that specifically excludes this. I want to inform the Seanad that that is not consistent with the policy of limiting the rent tax credit to those who do not get any other housing support from the State, so at an appropriate point, I will bring forward a legislative amendment to address this matter. I wish to make clear that where a Member of the Oireachtas is acting in a personal capacity in respect of his or her principal private residence, he or she is entitled to claim the tax credit in the same way as any other taxpayer. The exception specifically refers to the exercise of official duties.