Revenue eBrief No. 233/22
Rent Tax Credit
Tax and Duty Manual Part 15-01-11A (Rent Tax Credit) outlines the conditions which must be met in order for an individual to be eligible to claim the new rent tax credit. This credit was introduced by the Finance Act 2022 and is available for the tax years 2022 to 2025 inclusive. The manual also outlines the process by which the credit may be claimed.
In addition, the contents of Tax and Duty Manual Part 15-01-11 (Allowance in respect of rent payable for residential premises) have now been marked as no longer relevant. This relief was phased out over the tax years 2011 to 2017 and is no longer available.
The rent tax credit was announced by the Minister for Finance in Budget 2023. The credit is broadly available in the following three circumstances:
1) where the claimant makes a qualifying payment in respect of his or her principal private residence (see Appendix 2 qualification checklist),
2) where the claimant makes a qualifying payment in respect of a ‘second home’ which he or she uses to facilitate his or her attendance at, or participation in, his or her employment, office holding, trade, profession or an approved course (see Appendix 3 qualification checklist), and
3) where the claimant makes a qualifying payment in respect of a property used by his or her child to facilitate the latter’s attendance at, or participation in, an approved course (see Appendix 4 qualification checklist).
The rent tax credit will be available for the tax years 2022 to 2025 (inclusive) and the maximum value of the credit will be €1,000 per year in the case of a jointly assessed married couple or civil partners, and €500 in all other cases.
Claims for qualifying payments made during the 2022 tax year should be made on the claimant’s 2022 Income Tax Return. These returns will be available for submission from January 2023.
This manual sets out the full range of conditions which must be met in order for a claimant to qualify for the rent tax credit and sets out a detailed guide on how to make a claim for the credit