Paul Kehoe (Wexford, Fine Gael)
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Question 148: To ask the Minister for Finance if a person paying rent to a housing association similar to those (details supplied) is entitled to claim tax relief on their rent; and if he will make a statement on the matter. [13394/07]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I am informed by the Revenue Commissioners that, in specific terms, they are not in a position to state whether tax relief would be available in respect of rent paid to a voluntary housing association such as "Clúid" or 'Respond' without knowing the precise details of the tenancy and/or other arrangement entered into by the individual concerned.

In general terms, Section 473 TCA 1997 provides tax relief at the standard rate of tax (currently 20%) to individuals who pay for private rented accommodation that is used as their sole or main residence. The maximum tax relief available is as follows:

(a) for married persons jointly assessed to tax and widowed persons—

(i) if aged under 55, the maximum relief is €3,600@20% = €720

(ii) if aged 55 or over €7,200@20% = €1,440

(b) for single individuals—

(i) if aged under 55, €1,800 @ 20% = €360

(ii) if aged 55 or over €3,600 @ 20% = €720

However, the relief is not available in respect of rent paid on: a tenancy for a freehold estate or interest, or a tenancy for a definite period of 50 years or more; tenancies held from local authorities, Government Departments or the Office of Public Works, and tenancies in relation to which exists an agreement that the rent paid may be treated as consideration or part consideration for the purchase or future purchase of the property.

In addition, the term 'rent' does not include payment that relates to the provision of goods and services nor does it include any right or benefit other than the bare right to use, occupy and enjoy residential premises. Also, the term 'rent' does not include payments that qualify for right of reimbursement or subsidy from a third party.

I am further informed by the Revenue Commissioners that, in relation to the case giving rise to the Deputy's query, on receipt of the details of the individual's tenancy and/or other arrangement with the housing association, they will examine the matter and determine whether or not relief for rent paid is due.

If there is an entitlement to the rent relief, such entitlement is claimed by way of completion of a form Rent 1 (which is available from the Revenue website www.revenue.).