LAST UPDATE | 27 Sep 2022
RENTERS WILL BE able to apply for a new tax credit worth €500 per year.
The measure was announced today as part of Budget 2023.
The credit will be available to renters on their principal private residence. As many as 400,000 people are expected to be able to claim the tax credit.
Minister for Finance Paschal Donohoe said the measures is aimed at anyone who “do not get any other housing supports”.
It will apply for 2023 and subsequent years up to 2025, but can also be claimed in respect of 2022.
Details of how to claim the credit have yet to be announced, but it is expected to be claimed on an individual basis (except for married couples and civil partners) and the landlord must be registered with the Residential Tenancies Board (RTB).
A previous tax credit for renters was phased out by 2018.
In a statement, housing charity Threshold said the new credit would provide some level of relief, it is “simply not enough”.
Threshold’s policy officer Ann-Marie O’Reilly said she was ‘deeply disheartened’ by the measures announced today:
“As this tax credit will not apply to households already availing of housing supports, an increase in the HAP basic rates is not only needed but must be kept under yearly review to ensure a proportion of rental properties are available for those reliant on HAP.
“For too long tenants have been struggling to keep up with extortionate rental prices, particularly with added pressures in recent months from rising inflation and the cost-of-living. Tenants across Ireland deserve supports that are substantial and meaningful, but this year’s Budget has failed to deliver adequate measures.”
The credit was also criticised by Sinn Féin’s Pearse Doherty, who said that the credit “is less than the rent increases that they’ve seen every year, to be pocketed by their landlords, because you have refused to ban further rent increases”.
Labour housing spokesperson Rebecca Moynihan said the credit “will be quickly gobbled up by rent increases for most”, calling for a rent freeze and eviction ban.
Focus Ireland highlighted that credit will specifically exclude low-waged workers on the Housing Assistance Payment.
Landlords
The Irish Property Owners’ Association (IPOA) said Budget 2023 did little to address ‘serious issues’ facing landlords and prompting more to leave the market, highlighting how larger investment funds are able to benefit from tax breaks.
“The State needs to put in place conditions to encourage investment, to retain existing accommodation and treat investors in the rental market in an equal fair manner, taxing letting property as a business,” IPOA Chairman, Stephen Faughnan said.
As part of this Budget, the pre-letting expenses regime for landlords was doubled, meaning as much as €10,000 can be claimed back in tax relief. The amount of time the property must be unoccupied in order to be eligible for this was halved to six months.
More details to follow…
To embed this post, copy the code below on your site
have your say