Richard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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258. To ask the Minister for Finance if renters under a licence agreement will be entitled to the renters' tax credit; and if he will make a statement on the matter. [49452/22]

Paschal Donohoe (Dublin Central, Fine Gael)
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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 estimated cost of this measure in respect of each relevant year of assessment is €200 million.

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 sufficient 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.

In the context of fully utilising the €500 tax credit, "sufficient rent" amounts to €2,500 in a year. For 2022, "sufficient tax" amounts to €3,900 (equivalent to the aggregate 2022 value of the Personal Tax Credit, the Employee/Earned Income Tax Credit and the proposed Rent Tax Credit). For 2023, "sufficient tax" amounts to €4,050 (equivalent to the aggregate proposed 2023 value of the Personal Tax Credit, the Employee/Earned Income Tax Credit and the Rent Tax Credit).

I understand that licence arrangements could exist, where, for example, a person is sharing with the owner of a property in a rent-a-room or digs type arrangement or where they are staying in rented accommodation at the invitation of a tenant.

In such circumstances, they may be entitled to claim the proposed rent tax credit but it is intended that this will be subject to compliance with the conditions in the first and second bullet points above. Other conditions may also apply, for example relating to the details that must be provided to Revenue in making a claim for the relief.

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.