As you probably know by now, a new Tax Credit for renters was introduced by the Minister of Finance in the 2023 Budget. This rent credit can be claimed for the years 2022 to 2025 inclusive and reduces the amount of income tax that tenants renting accommodation in Ireland will have to pay.
The rent credit is worth up to €500 per year for an individual or €1,000 per year for a couple who are jointly assessed for tax.
Are you eligible?
You must meet the following criteria:
- You are paying for private rented accommodation situated in Ireland
- You have paid more tax in Ireland than the value of the credit
- You are not in receipt of housing assistance such as Housing Assistance Payment (HAP), Rent Supplement or the Rental Accommodation Scheme (RAS)
- Your tenancy is registered with the Residential Tenancies Board (RTB) unless it is a license agreement i.e. the tenant is sharing with the landlord or it is a Rent-A-Room arrangement
- The landlord is not your parent or child.
The tax credits can be claimed on 3 types of properties used as:
a) the tenant’s home,
b) a second home required for the purposes of work or education
c) a property used by the child of the claimant to take part in a Revenue approved course and where the child is under 23.
How do you claim?
To claim the credit, a formal claim must be made with Revenue. The easiest way is to log into your online revenue account.
For 2022 you must complete a tax return and receive a refund.
For 2023 and future years, you can add the credit to your tax credit certificate to claim the tax relief through your payroll. If you do not add it to your tax credit certificate, you can also claim at year end by completing a tax return and you will be refunded in a lump sum.
What information do you need?
Minimum information required to avail of the rent credit includes:
- Rental address including eircode
- Name of the landlord or agency acting on their behalf
- Gross Rental payments made in a calendar year
- When claim is for a child, PPSN, date of birth and start date of approved course of child.
- Start and estimated end date of the tenancy
While Revenue do not require the following information up front to claim the credit, the claimant should have it to hand (as well as supporting documents), as Revenue can request it at any time and revoke the credit if it is not provided by the claimant.
- RTB registration number
- Purpose of the tenancy
- Confirmation if claimant is making use of the property themselves or claiming for rental payments made on behalf of a child
- Nature of any family relationship between the tenant and landlord
- Address, residency status and PPSN of landlord
- LPT property ID of rented property
Want to learn more and understand how Cornmarket can help? At Cornmarket, we take the hassle out of tax. Talk to one of our tax advisors today to learn more about the Cornmarket Tax Return Service.
Call us on (01) 420 6757 today.
Cornmarket Group Financial Services Ltd. is a member of Cornmarket Group Financial Services Ltd. is a member of the Irish Life Group Ltd. which is part of the Great-West Lifeco Group of companies. Cornmarket’s Tax Return Service is not a regulated financial product.