Robert Troy (Longford-Westmeath, Fianna Fail)
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68. To ask the Minister for Finance if he will clarify whether a recipient of the State pension can qualify for the €500 renters' allowance which was announced in Budget 2023. [53642/22]

Paschal Donohoe (Dublin Central, Fine Gael)
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On Budget Day, I announced a €500 Rent Tax Credit with the intention that it 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 sufficient rent and sufficient income 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.

The credit is specifically targeted to assist renters who do not receive other State housing supports. Renters who are in receipt of State housing support, such as the Housing Assistance Payment, the Rental Supplement or who are availing of the Rental Accommodation Scheme or cost rental arrangements, will not be eligible for the credit.

In the case of a single person, "sufficient rent" as mentioned above amounts to €2,500 in a year. For 2022, "sufficient income 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 income 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).

It is not clear from the Deputy’s question whether he has in mind the non-contributory State Pension which is means-tested or the contributory State Pension which is not means tested and which a person may qualify for, subject to having sufficient social insurance contributions.

It is unlikely that a person whose only income is the State Pension (either contributory or non-contributory) would be in a position to avail of the new rent tax credit because they may be exempt from income tax or their income tax liability would be fully offset by their personal tax credits and they would not have sufficient income to avail of the new rent tax credit.

However, depending on their aggregate income, a person in receipt of other income besides the contributory State Pension, for example an occupational pension, may well have sufficient income and pay sufficient tax in Ireland to be able to benefit from the credit subject to meeting other qualifying criteria applying to the credit.

There is nothing in the arrangements being put in place for the rent tax credit that seeks to expressly exclude those in receipt of State Pensions from qualifying for the relief.