Rent tax credit of up to €1,000 for renters, benefits from next month
DUBLIN: The benefits of the government’s cost-of-living package, announced in the budget, will be available to families struggling with price increases and inflation beginning next month. The government is offering thousands of renter households a bonus of between €500 and €1,000. The benefit comes in the form of a rent tax credit. The payment is an attempt to ease the cost of living for renters across the country.
The new tax credit will be available between 2022 and 2025. Every year, married and civil partners can receive a maximum credit of €1,000. Those in other circumstances will also receive 500 euros. Rent tax credit is available subject to conditions.
Credit is available for the principal private residence, other properties used for work, etc., and property used for children’s education. The benefit will be determined by the rental property’s location, use, type of rent, the relationship between the tenant and the child and the landlord, the child’s age, and their course of study.
Detailed guidance on the provisions of the Rent Tax Credit will be published once the Finance Act is signed into law. The guidelines will also include when and how to claim credit.
The Minister of Housing stated that there would be measures in place to assist small landowners.
Dublin: The government may review taxes for small house owners. Darragh O’Brien, reappointed as housing minister in the new cabinet, has hinted at this. Some changes have been made for small people in terms of costs and energy retrofits. However, the minister stated that more efforts must be made to keep them on the market.
With Michael McGrath taking over as finance minister, it is suggested that there will be more opportunities to put Fine Fail’s ideas into action. It had some limitations previously, during Pascal Dono’s tenure. Therefore, it is expected that the measures in favour of the small land owners will come soon from the government.
Prior to the budget, there was speculation that the introduction of rent credits for tenants would also benefit landlords. Before the budget was announced on September 27, there were reports that tax relief for landlords would be considered. However, that did not appear in the budget announcement.
Although a tax credit of 500–1000 euros was announced for tenants, small landlords did not get any benefit. This drew criticism from landlord groups. It appears that this prompted the housing minister to respond in this manner.
The minister is of the view that more needs to be done for individual landlords who are still in the market. The tax approach towards them needs to be reexamined. The minister also stated that an agreement with Fine Gael and Green Party colleagues should be reached for this.
In the last six years, there has been a situation where small landowners have been exiting the market, so they need to be helped. They must deal with their problems effectively. Landlords are frequently portrayed badly. But the minister reminded everyone that there are many landlords who interact well. The minister claims that 98% of the tenants have good relations with their landlords.
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