Written answers

Wednesday, 18 January 2023

Photo of Pearse DohertyPearse Doherty (Donegal, Sinn Fein)
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348. To ask the Minister for Finance the estimated cost in 2023 of the rent tax credit; and if the cost includes rent tax credit payments with respect to both 2022 and 2023. [1455/23]

Photo of Michael McGrathMichael McGrath (Cork South Central, Fianna Fail)
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Finance Act 2022 introduced a €500 Rent Tax Credit which will be available to claim in respect of rent paid in respect of each of the years 2022 to 2025.  The cost of the measure in terms of tax foregone is estimated at €200m in respect of each year to which it applies.

I am advised by Revenue that as at 16 January 2023, over 53,500 claims for the rent tax credit in respect of the 2022 year of assessment have been made. These claims have been made by PAYE taxpayers by submitting an Income Tax return for the 2022 year of assessment through Revenue’s online facility myAccount.  For claims relating to the 2023 year of assessment, those in receipt of income which is subject to tax under the PAYE system will be able to claim the rent tax credit due to them in-year, from mid-February 2023 onwards, or by way of an end of year claim included in his or her Income Tax return for 2023.

Self-assessed taxpayers will be able to claim the rent tax credit for the 2022 year of assessment by submitting his or her Income Tax Return through the Revenue Online Service (ROS) from 24 January 2023. The statutory filing date for the 2022 tax return for self-assessed taxpayers is 31 October 2023.

As regards the cost of the measure that will arise is 2023, it is the case that such a figure will include costs in respect of both the tax years 2022 and 2023.  My Department estimates that the Exchequer cash cost arising in 2023 in respect of those two tax years could amount to €400 million. 

I might add that I am further advised by Revenue that it is not possible to estimate a projected outturn for 2023 on the basis of the data in relation to claims available at this time.

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