Michael Healy-Rae (Kerry, Independent)
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200. To ask the Minister for Finance if a matter regarding the renter's tax credit (details supplied) will be examined; and if he will make a statement on the matter. [3850/23]

Michael McGrath (Cork South Central, Fianna Fail)
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The Rent Tax Credit, as provided for in section 473B of the Taxes Consolidation Act 1997 (TCA 1997), was introduced by Finance Act 2022 and will be available in respect of qualifying payments made during the 2022 to 2025 years of assessment inclusive. Qualifying payments must be made under a tenancy.

A tenancy for this purpose is a rental arrangement which falls into one of the below categories:

1. An agreement, contract or lease which is required to be registered with the Residential Tenancy Board (RTB) under Part 7 of the Residential Tenancies Act 2004. Where a rental arrangement is of a type which is required to be registered with the RTB, the landlord must have complied with this registration obligation in order for the claimant to receive the Rent Tax Credit.

2. A licence for the use of a room, or rooms, in an individual's person’s principal private residence. Such rental arrangements are not generally required to be registered with the RTB under Part 7 of the Residential Tenancies Act 2004, and therefore availability of the Rent Tax Credit in such circumstances is not dependent on the tenancy being registered.

Consistent with category 2 above, a person renting under a tenancy which is not required to be registered with the RTB is not required to provide an RTB registration number when claiming the Rent Tax Credit.

Full details of the type of tenancies which must be registered with the RTB, and the process by which such registrations may be completed, can be found on the RTB website available at: www.rtb.ie. Responsibility for compliance with the legal obligation to register a tenancy under the Residential Tenancies Act 2004 is a matter for the RTB, and landlords should familiarise themselves with their RTB registration obligations and ensure that they have fulfilled same.

Where a tenancy is registered with the RTB, claimants are requested to provide the RTB number as part of the claim process.

As part of the RTB registration process, the landlord and each tenant named on an RTB registration will receive a letter from the RTB shortly after registration. This letter will contain the number assigned to the tenancy, which can be used when claiming the Rent Tax Credit. Duplicate copies of this letter, if required, can also be requested from the RTB.

In designing tax measures, there is a balance to be struck between providing support to as many people as possible consistent with the overall policy intention behind the measure and ensuring that there is an appropriate degree of control in the management of limited Exchequer resources. The current rules for the Rent Tax Credit seek to achieve such a balance in respect of the details required when claiming the credit.

Further details in respect of the tax credit, including comprehensive guidance on the full range of conditions which must be met and how to make a claim, can be found in Tax and Duty Manual Part 15-01-11A at: www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-15/15-01-11A.pdf.

The operation of the Rent Tax Credit will be closely monitored by my Department in conjunction with Revenue in the coming months and the question of whether any further adjustments are needed will be considered in the context of the Budget and Finance Bill process later this year.