Fergus O'Dowd (Louth, Fine Gael)
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213. To ask the Minister for Finance if a response will issue to a query raised by person (details supplied) in respect of the rent tax credit that was announced in Budget 2023; and if he will make a statement on the matter. [48396/22]

Colm Burke (Cork North Central, Fine Gael)
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233. To ask the Minister for Finance if the €500 tax credit for renters as announced in Budget 2023 will be available to those who are renting a room from a person who is letting out accommodation from the rent a room scheme; and if he will make a statement on the matter. [48514/22]

Gerald Nash (Louth, Labour)
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237. To ask the Minister for Finance the qualifying criteria for the rent tax credit; if tenants in approved housing bodies, local authorities and cost-rental developments respectively will be eligible; and if not, the reasoning for that exclusion; and if he will make a statement on the matter. [48534/22]

Sorca Clarke (Longford-Westmeath, Sinn Fein)
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243. To ask the Minister for Finance the arrangements that have been made for those renting a room in the landlord's property in cases in which there is no obligation for the property owner to register with the Residential Tenancies Board to ensure that they can avail of the newly introduced rental tax credit; and if he will make a statement on the matter. [48588/22]

Paschal Donohoe (Dublin Central, Fine Gael)
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I propose to take Questions Nos. 213, 233, 237 and 243 together.

As the Deputies are aware, on Budget Day, I announced a €500 Rent Tax Credit which it is proposed will be claimable in respect of rent paid in 2022 and subsequent years to end-2025.

The intention is that, in order for a person to be in a position to claim the credit in a year :

- the rent paid must be in respect of the person’s principal private residence,

- the person living in the rented property themselves, or their spouse/civil partner, must have paid the rent and sufficient tax to avail of the credit,

- the tenancy must be registered with the Residential Tenancies Board (RTB) but only where this is already a legal requirement.

Tenants in the rent-a-room scheme and in student accommodation will also be able to claim the tax credit, subject to compliance with bullet points one and two above.

In response to Deputy Nash's question, and as stated in my Budget address, the rent tax credit is aimed at those who do not get any other State housing supports. It is not intended, therefore, that tenants of local authorities, tenants in receipt of the Housing Assistance Payment, tenants who are supported by the Rental Accommodation Scheme or who are renting from Approved Housing Bodies will be entitled to claim the relief.

A number of the above conditions applied in the past in respect of the previous “Allowance for Rent paid” measure.

Qualification/compliance requirements are continuing to be worked through at present and the aim is to have them finalised in the coming days in the context of the preparation of the Finance Bill.

Richard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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214. To ask the Minister for Finance the estimated number of tenants who will benefit from the new €500 rental credit given that the numbers of tenancies that are supported by the rental accommodation scheme, HAP or rent allowance; the numbers of students and low paid workers who do not earn enough to pay tax; the numbers of tenancies that are not registered with the Residential Tenancies Board; and if he will make a statement on the matter. [48485/22]

Paschal Donohoe (Dublin Central, Fine Gael)
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As I indicated in my Budget 2023 address, approximately 400,000 persons are expected to be eligible to claim the proposed rent tax credit in 2023.

As a precise figure for the number of eligible tenants for the rent credit is currently unavailable from the Residential Tenancies Board (RTB), an estimate was arrived at using the best available data, which is published by the CSO and relates to Jan – June 2021. That release put the number of people deemed to be in the rental sector (excluding social housing tenants) at just over 600,000. Importantly, due to the method by which the data is collected (PPS numbers), the total is deemed to be overwhelmingly comprised of adults, as well as an underestimate of the actual number of people renting.

There are just over 100,000 people in supported tenancies (HAP, RAS, AHBs). When these are excluded the number of eligible tenants falls to c. 500,000. Further, according to the CSO, some 75 per cent of tenants in their dataset have employee, self-employed or director income, which would allow them to claim the relief where the other conditions attached to the credit are met. That brings the estimated number of eligible tenants to just under 400,000. Given the acknowledged underestimate of the base figure and the need for caution given the huge uncertainties around the data, an estimate of 400,000 was deemed an appropriate figure to use to cost this measure.

Subject to a number of conditions being met, the rent tax credit will be available in respect of rent paid during the course of the 2022 year of assessment and subsequent years. I am informed by Revenue that taxpayers will be required to complete an Income Tax Return in order to make a claim in respect of rent paid during the 2022 year of assessment.

Income Tax Returns for the 2022 year of assessment will be available for completion and submission in early January 2023. Further details in relation to the information and supporting documentation taxpayers will be required to provide when making a claim in respect of rent paid during 2022 will be published to the Revenue.ie website in early January 2023. Details in relation to the claim process for rent paid during the 2023 and subsequent years of assessment will also be published in due course.