Michael McGrath (Cork South Central, Fianna Fail)
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The rent tax credit 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.

There is nothing in the arrangements in place for the rent tax credit that seeks to expressly exclude those in receipt of State Pensions from qualifying for the relief.

While it is not possible to determine why this the person concerned is unable to claim the rent tax credit from the the information supplied by the Deputy, the following considerations may be relevant.

In order for a person to be in a position to claim the rent tax credit in a year:

• the rent paid must be in respect of the person’s principal private residence;
• the person living in the rented property themselves, or their spouse/civil partner, must have paid sufficient rent and sufficient income tax to avail of the credit;
• the tenancy must be registered with the Residential Tenancies Board (RTB), but only where this is already a legal requirement.

In the case of a single person, "sufficient rent" as mentioned above amounts to €2,500 for the tax years 2022 and 2023 and €3,750 for the tax years 2024 and 2025. For 2022, "sufficient income tax" amounts to €3,900 (equivalent to the aggregate 2022 value of the Personal Tax Credit, the Employee/Earned Income Tax Credit and the Rent Tax Credit). For 2023, "sufficient income tax" amounts to €4,050 (equivalent to the aggregate 2023 value of the Personal Tax Credit, the Employee/Earned Income Tax Credit and the Rent Tax Credit). For 2024, "sufficient income tax" amounts to €4,500 (equivalent to the aggregate 2024 value of the Personal Tax Credit, the Employee/Earned Income Tax Credit and the Rent Tax Credit).

The credit is specifically targeted to assist renters who do not receive other State housing supports. Renters who are in receipt of State housing support, such as the Housing Assistance Payment, the Rental Supplement or who are availing of the Rental Accommodation Scheme or cost rental arrangements, will not be eligible for the credit.

I am advised by Revenue that a comprehensive manual on the rent tax credit was published by Revenue in December 2022. This guidance sets out the full range of conditions which must be met in order for the credit to be claimed and includes a number of helpful examples. The guidance also contains step-by-step details on how to claim the credit for 2022, being the first year the credit is available. This information 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.

Information on the rent tax credit is also prominently displayed on the homepage of the Revenue website under the heading ‘Popular Topics’ and the relevant link provides potential claimants with detailed information on how to claim the tax credit.

Revenue has engaged with the Residential Tenancy Board (RTB) and the Department of Housing, Local Government and Heritage to ensure that information on eligibility for the credit is widely available and understood.

I am satisfied that the steps taken to-date are appropriate in terms of ensuring that adequate information on the eligibility criteria attached to the rent tax credit has been made available and that the claim process is accessible for all potential claimants.