Revenue has updated its guidance in the rent tax credit manual to reflect the increase in the rent tax credit for the 2024 and 2025 tax years.
In addition, the following changes introduced by Finance (No. 2) Act 2023 are also reflected:
- The change in respect of eligibility where a parent is paying rent for a child (Paragraph 5.3 and Appendix 1),
- Out of year and in year claims (Paragraph 7.3),
- The inclusion of more examples, and
- Income tax returns for 2022 and 2023 can be used where taxpayers are seeking to claim the rent tax credit in respect of payments made for digs or rent-a-room type arrangements to facilitate a child’s attendance at an approved course. This change applies retrospectively to 2022 and 2023.