Pádraig O'Sullivan (Cork North Central, Fianna Fail)
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89. To ask the Minister for Finance if the €500 rental tax credit will apply to those tenants who rent from approved housing bodies; and if he will make a statement on the matter. [4915/23]

Michael McGrath (Cork South Central, Fianna Fail)
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Finance Act 2022 introduced the Rent Tax Credit, which is provided for in section 473B of the Taxes Consolidation Act 1997 (TCA 1997). This is an income tax credit of up to €500 per year (or up to €1,000 for jointly assessed couples) which may be claimed in respect of qualifying rent paid in 2022 and subsequent years to end-2025.

Full details of how to claim the tax credit and the conditions that apply are set out in the relevant Tax and Duty Manual (Part 15-01-11A) available on the Revenue website at the following link: 

www.revenue.ie/en/personal-tax-credits-reliefs-and-exemptions/land-and-property/rent-credit/index.aspx . 

The Rent Tax Credit is not available in cases where rent is paid to a ‘specified landlord’. Section 473B of the TCA 1997), defines a 'specified landlord' as:

(a) a Minister of the Government,

(b) the Commissioners of Public Works in Ireland,

(c) a housing authority within the meaning of the Housing (Miscellaneous Provisions) Act 1992, or

(d) an approved housing body within the meaning of the Housing (Regulation of Approved Housing Bodies) Act 2019.

From the outset, the Rent Tax Credit measure was intended to assist those who do not get any other housing supports from the State.

Approved Housing Bodies (AHBs) are independent, not-for-profit organisations. They provide affordable rented housing for people who cannot afford to pay private sector rents or buy their own homes; or for particular groups, such as older people or homeless people. AHBs receive State funding from local authorities to provide affordable rented housing. 

As such, the Rent Tax Credit does not apply to tenants who rent from AHBs and there are no plans at present to depart from this position.