Eoin Ó Broin (Dublin Mid West, Sinn Fein)
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274. To ask the Minister for Finance the number of renters availing of the renter's tax credit in 2022 and to date in 2023, with a breakdown by county and an average credit paid in each county. [35359/23]

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 the Finance Act 2022 and may be claimed in respect of qualifying rent paid in 2022 and subsequent years to end-2025.

I am advised by Revenue that the Rent Tax Credit statistics currently available refer only to claims by PAYE taxpayers for the 2022 tax year and the 2023 tax year to-date. Data on claims by self-assessed taxpayers is not yet available as these taxpayers’ returns are generally submitted later in the year. The statutory filing date for the 2022 tax return for self-assessed taxpayers is 31 October 2023.

Claims in respect of the 2022 year of assessment can be made by PAYE taxpayers by submitting an Income Tax return for that year. For claims relating to 2023, PAYE taxpayers have the option of claiming the rent tax credit due to them either as rent is incurred or at the end of the year through their Income Tax return. Due to the manner in which current year claims are made, I am advised by Revenue that data on average claim amounts made with respect to the tax year 2023 are not yet available.

Rent Tax Credit claims made are on a ‘taxpayer unit’ basis. A taxpayer unit is either an individual with any personal status who is singly assessed or a couple in a marriage or civil partnership who have elected for joint assessment.

I am further advised that over 266,120 Rent Tax Credit claims have been made by 238,066 taxpayer units up to and including 9July 2023, consisting of:

(i) 197,435 taxpayer units that made claims for 2022 only,

(ii) 28,054 taxpayer units that made claims for both 2022 and 2023, and

(iii) 12,577 taxpayer units that made claims for 2023 only.

Data for claims relating to PAYE taxpayers for 2022, including the average paid in each county for claims in respect of 2022, are set out by county in the table below.

Darren O'Rourke (Meath East, Sinn Fein)
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275. To ask the Minister for Finance how many landlords have availed of the tax credit to retrofit their rental properties in 2022, q1 2023 and in q2 2023; and if he will make a statement on the matter. [35402/23]

Michael McGrath (Cork South Central, Fianna Fail)
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A new tax incentive was introduced in Finance Act 2022 for small-scale landlords who undertake retrofitting works while the tenant remains in situ, which has the aim of attracting and retaining small-scale landlords in the private rental sector. This measure is provided for in section 97B of the Taxes Consolidation Act 1997.

The provision is intended to provide for a deduction of certain retrofitting expenses incurred by landlords on rented residential properties in calculating their Case V rental profits. The expenses that qualify for deduction are those in respect of which the landlord has received a home energy grant from the Sustainable Energy Authority of Ireland (SEAI). It should be noted that the expenses incurred must be in respect of the period 1 January 2023 to 31 December 2025. Furthermore, the maximum amount of tax deduction that can be claimed is the lesser of the qualifying expenditure incurred or €10,000 and a landlord is only entitled to claim the relief on a maximum of two of his/her rental properties.

The deduction operates in the same manner as any other permitted rental deductions. However, unlike other rental expenses, it will not be deducted for the year in which it is incurred. Instead, the deduction will be claimed against the rental income of the year following that in which the expense was incurred. For example, expenses incurred on retrofitting works in 2023 should be included in calculating rental profits for 2024 and may be claimed by a landlord on their income tax return for that year. As such, relief under this measure will be claimed for the first time in 2025, in respect of the 2024 tax year.

Income tax returns for 2024 are not due until Q4 2025 and as such, Revenue has advised me that it is not currently possible to provide information on the take-up of the deduction for retrofitting expenditure.