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Taxes Consolidation Act, 1997 (Number 39 of 1997)

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473B Rent tax credit

(1) In this section—

appropriate percentage”, in relation to a year of assessment, means a percentage equal to the standard rate of tax for that year;

approved course” has the same meaning as it has in section 473A;

child” means a child of an individual, or a child of the individual’s spouse or civil partner, who has not attained the age of 23 years at the commencement of the year of assessment during which he or she first enters an approved course;

claimant” has the meaning given to it in subsection (2);

landlord”, in relation to a residential property, means the person for the time being entitled to receive (otherwise than as agent for another person) any payment on account of rent paid under a tenancy in respect of the residential property;

payment on account of rent” means a payment made in return for the special possession, use, occupation or enjoyment of a residential property, but does not include—

(a) any portion of such payment which has been, or is to be, reimbursed, or otherwise funded by way of a subsidy provided—

(i) to the claimant, or

(ii) where the claimant is assessed to tax in accordance with section 1017 or 1031C in the year of assessment, to his or her spouse or civil partner,

or

(b) any itemised payment relating to—

(i) the cost of maintenance of, or repairs to, the property,

(ii) the provision of goods or services relating to any right or benefit other than the bare right to special possession, use, occupation or enjoyment of the property, or

(iii) a security deposit paid on commencement of the tenancy;

PPS Number”, in relation to an individual, means the individual’s Personal Public Service Number within the meaning of section 262 of the Social Welfare Consolidation Act 2005;

principal private residence” means a residential property occupied by an individual as his or her sole residence;

qualifying payment” means a payment made on account of rent falling due in a year of assessment, where such payment has been made under a tenancy;

relative” means a lineal ascendent, lineal descendent, brother, sister, uncle, aunt, niece or nephew;

rent tax credit” has the meaning given to it in subsection (2);

residential property” means—

(a) a building or part of a building located in the State which is used or suitable for use as a dwelling, and

(b) adjoining land which the occupier of a building or part of a building has for his or her own occupation and enjoyment with the building or part of a building as its gardens or grounds of an ornamental nature;

specified amount”, in relation to a year of assessment, means—

(a) €5,000, in the case of an individual who is assessed to tax in accordance with section 1017 or 1031C in the year of assessment, and

(b) €2,500 in all other cases;

specified landlord” means—

(a) a Minister of the Government,

(b) the Commissioners of Public Works in Ireland,

(c) a housing authority within the meaning (Miscellaneous Provisions) Act 1992, or of the Housing

(d) an approved housing body within the meaning of the Housing (Regulation of Approved Housing Bodies) Act 2019;

supported tenant” means, in relation to a tenancy, an individual who is—

(a) in receipt of—

(i) payment of a supplement towards the amount of rent payable by the individual in respect of his or her residence payable in accordance with regulations made under section 198 of the Social Welfare Consolidation Act 2005,

(ii) housing assistance, within the meaning of Part 4 of the Housing (Miscellaneous Provisions) Act 2014, or

(iii) social housing support, within the meaning of the Housing (Miscellaneous Provisions) Act 2009,

or

(b) residing in a residential property which has been designated as a cost rental dwelling within the meaning of Part 3 of the Affordable Housing Act 2021;

tax reference number” means—

(a) in the case of an individual, his or her PPS Number, and

(b) in the case of a partnership or company, the reference number stated on any return of income, form or notice of assessment issued to the partnership or company, as the case may be, by the Revenue Commissioners;

tenancy” means—

(a) any agreement, contract or lease which has been registered under Part 7 of the Residential Tenancies Act 2004, or

(b) any licence for the use, as a residence, of a room or rooms in an individual’s principal private residence, where—

(i) there is no obligation under Part 7 of the Residential Tenancies Act 2004 for such licence to be registered, and

(ii) the licence has been commenced with the consent of the landlord, but does not include any tenancy—

(I) which, apart from any statutory extension, is a tenancy for a freehold estate or interest or for a definite period of 50 years or more, or

(II) in which an agreement or provision exists under which any amount paid may be treated as consideration or part consideration, in whatever form, for the creation of a further or greater estate, tenancy or interest in the property concerned or any other property.

(2) An individual (referred to in this section as the ‘claimant’) who proves that during the year of assessment he or she made a qualifying payment in respect of a residential property used by him or her as his or her principal private residence in the period to which the payment relates and makes a claim in that regard shall be entitled to a tax credit (to be known as the ‘rent tax credit’) equal to the lesser of—

(a) an amount equal to the appropriate percentage of the aggregate qualifying payment made in that year of assessment,

(b) an amount equal to the appropriate percentage of the specified amount, and

(c) the amount which reduces the claimant’s income tax to nil.

(3)(a) Where a qualifying payment is made in respect of a period which falls partly in one year of assessment and partly in another year of assessment, the amount of the qualifying payment made in respect of that period shall be apportioned to each year of assessment based on the proportion each part of the period bears to the period as a whole.

(b) Where an amount of the qualifying payment made has been apportioned to a year of assessment under paragraph (a), the amount shall be deemed for the purposes of this section to have been made in that year of assessment.

(4) Where a claimant is assessed to tax in accordance with section 1017 or 1031C in a year of assessment, any qualifying payment made by his or her spouse or civil partner in that year of assessment shall, for the purposes of this section, be deemed to have been made by the claimant.

(5) Where—

(a) a claimant, or

(b) in a case where subsection (4) applies, a claimant’s spouse or civil partner,

proves that he or she made a qualifying payment in respect of his or her use of a residential property, other than his or her principal private residence, as a residence to facilitate his or her attendance at or participation in his or her trade, profession, employment, office holding or an approved course during the period to which the qualifying payment relates, the claimant shall, upon making a claim in that regard, be entitled to the same rent tax credit as if the qualifying payment was made in respect of a residential property which was used by the claimant as his or her principal private residence.

(6) Notwithstanding subsection (2), this section shall not apply to a qualifying payment made in respect of a residential property—

(a) in any case where—

(i) the landlord is a specified landlord, or

(ii) the claimant is a supported tenant,

or

(b) subject to subsection (7), where the claimant is a relative of the landlord.

(7) Notwithstanding subsection (6)(b), in a case where the claimant is a relative of the landlord concerned the relief provided for in this section shall apply where—

(a) the relationship between the claimant and the landlord is other than that of parent and child, or child and parent,

(b) the tenancy is of a type which is required to be registered under Part 7 of the Residential Tenancies Act 2004, and

(c) the tenancy complies with the requirement referred to in paragraph (b).

(8) Where—

(a) a claimant, or

(b) in a case where subsection (4) applies, a claimant’s spouse or civil partner, proves that he or she made a qualifying payment in respect of a residential property used by his or her child as his or her principal private residence the claimant shall, upon making a claim in that regard, be entitled to the same rent tax credit as if the qualifying payment was made in respect of a residential property which was used by the claimant as his or her own principal private residence, where—

(i) neither the individual nor the child is a relative of the landlord,

(ii) the child was undertaking an approved course and using the property to facilitate his or her participation in that course during the period to which the qualifying payment relates,

(iii) the tenancy is of a type which is required to be registered under Part 7 of the Residential Tenancies Act 2004, and

(iv) the tenancy complies with the requirement referred to in subparagraph (iii).

(9) In making a claim under this section, a claimant shall provide to the Revenue Commissioners, through such electronic means as the Revenue Commissioners make available, the following information—

(a) the claimant’s name, address (including the Eircode) and PPS Number,

(b) the amount of any periodic payment made under a tenancy to the landlord concerned, or to a person acting on behalf of the landlord, by the claimant during the year of assessment concerned,

(c) the aggregate amount of any payment referred to in paragraph (b),

(d) the amount of any periodic payment referred to in paragraph (b) which was a qualifying payment,

(e) the aggregate amount of any payment referred to in paragraph (d),

(f) where subsection (4) applies—

(i) the name, address (including the Eircode) and PPS Number of the claimant’s spouse or civil partner,

(ii) the amount of any periodic payment made under a tenancy to the landlord concerned, or to a person acting on behalf of the landlord, by the claimant’s spouse or civil partner during the year of assessment concerned,

(iii) the aggregate amount of any payment referred to in subparagraph (ii),

(iv) the amount of any periodic payment referred to in subparagraph (ii) which was a qualifying payment, and

(v) the aggregate amount of any payment referred to in subparagraph (iv),

(g) full particulars of the tenancy under which the qualifying payment was made, including—

(i) the name and address (including the Eircode) of the individual who uses the residential property to which the tenancy relates as his or her principal private residence, if different to the individual referred to in paragraph (a) or (f)(i),

(ii) the address (including the Eircode) of the residential property concerned, if different to the address referred to in paragraph (a),

(iii) where available to the claimant, the unique identification number assigned to the residential property concerned for the purposes of the Finance (Local Property Tax) Act 2012,

(iv) where available to the claimant, the unique number assigned to the tenancy concerned in accordance with section 135 of the Residential Tenancies Act 2004, if applicable,

(v) the duration of the tenancy, and

(vi) where the tenancy is a licence, confirmation that the landlord has consented to the commencement of the licence,

(h) the name and address (including the Eircode) of the person to whom the qualifying payment was made,

(i) where available to the claimant, the name and address (including the Eircode) of the landlord concerned, if different to the person referred to in paragraph (h),

(j) where available to the claimant, the tax reference number of the landlord concerned, and

(k) such other information as may reasonably be required by the Revenue Commissioners to determine whether the requirements of this section are met.

(10)(a) On being so required by an officer of the Revenue Commissioners the claimant shall, within the period of 30 days of being requested to do so by the Revenue Commissioners, make available to the officer a copy of—

(i) the tenancy under which the qualifying payment was made,

(ii) a receipt or statement of any payment made under that tenancy to the landlord concerned, or a person acting on behalf of the landlord, in the year of assessment concerned, and

(iii) any other information that may reasonably be required by the Revenue Commissioners to determine whether the requirements of this section are met.

(b) Any receipt or statement required under paragraph (a) shall be in writing and shall contain—

(i) the name of the individual who made the qualifying payment,

(ii) the amount of any periodic payment made under a tenancy to the landlord concerned, or to a person acting on behalf of the landlord, by that individual during the relevant year of assessment,

(iii) the aggregate amount of any payment referred to in subparagraph (ii),

(iv) the amount of any periodic payment referred to in subparagraph (ii) which was a qualifying payment,

(v) the aggregate amount of any payment referred to in subparagraph (iv),

(vi) the name and address (including the Eircode) of the individual who uses the property as his or her principal private residence, if different to the individual referred to in subparagraph (i),

(vii) the address (including the Eircode) of the residential property in respect of which the payment referred to in subparagraph (ii) was made,

(viii) the name and address (including the Eircode) of the person to whom the qualifying payment was made,

(ix) the name and address (including the Eircode) of the landlord, if different to the person referred to in subparagraph (viii), and

(x) the tax reference number of the landlord.

(11) Failure to furnish any of the particulars referred to in subsections (9) or (10) shall be grounds for refusal of a claim and, where relief has already been given to a claimant under this section, such relief may be withdrawn by the Revenue Commissioners.

(12) A person in receipt of a qualifying payment shall, on being so required by an officer of the Revenue Commissioners, furnish or make available to the officer, within the period of 30 days of being requested to do so by the Revenue Commissioners, any of the details set out in subsection (9) or copies of any of the documents referred to in subsection (10) which the officer considers necessary to determine whether the requirements of this section are met.

(13) Where the claimant is entitled to a rent tax credit under subsection (2), (5), (7) or (8), as the case may be, the aggregate of such credit shall not exceed €500 or, in the case of an individual who is assessed to tax in accordance with section 1017 or 1031C in the year of assessment, €1,000.

(14) This section shall apply in respect of the years of assessment 2022, 2023, 2024 and 2025.

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Inserted by FA22 s13(b). Comes into operation on 1 January 2023.