Holly Cairns (Cork South West, Social Democrats)
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255. To ask the Minister for Finance the steps he is taking for persons renting accommodation from a landlord who is not registered with the Residential Tenancies Board in accessing the rent tax credit. [15497/23]

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. 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. 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.

Compliance with the legal obligation to register a tenancy under the Residential Tenancies Act 2004 (as amended) is a matter for the RTB. Unregistered tenancies may be reported to the RTB’s Registration Enforcement Unit by email to enforcement@rtb.ie

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.