Rent tax credit : €500 from 2022 i.e. this year

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Brendan Burgess

Brendan Burgess

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Help to Buy being kept under review. An independent report being published today. Keeping it until 2024

Rent tax credit : €500

Pre letting expenses regime doubled to €10,000 and reducing period of vacancy from 12 months to 6 months.
 

Rental Tax Credit​

For those taxpayers who are paying rent on their principal private residence, I am introducing a new rent tax credit valued at €500 per year.
This measure, aimed at those who do not get any other housing supports, will apply for 2023 and subsequent tax years but I am providing that it may also be claimed in respect of rent paid in 2022.
Approximately 400,000 persons are expected to benefit. Further details are contained in the Budget documentation.
 

Vacant Homes Tax​

Maximising the use of existing housing stock is also a key objective of this government.
Accordingly, I am introducing a Vacant Homes Tax to increase the supply of homes for rent or purchase to meet demand.
The tax will apply to residential properties which are occupied for less than 30 days in a twelve month period. There will be a number of exemptions to ensure that owners are not unfairly charged where the property may be vacant for a genuine reason.
The tax will operate on a self-assessment basis and will be administered by the Revenue Commissioners. The tax will be charged at a rate equal to three times the property’s existing basic Local Property Tax rate.

Residential Zoned Land Tax​

In Budget 2022 I announced a Residential Zoned Land Tax.
In order to identify zoned land within the scope of the tax, maps are currently being prepared by Local Authorities who will publish their first draft maps on the 1st of November this year. Following the publication of the maps, any person will have the opportunity to apply to their Local Authority to have the zoning status of their land amended as part of a variation process.
In Finance Bill 2022 I will bring forward a number of amendments to streamline the operation of the Residential Zoned Land Tax and ensure it is efficiently administered.

Residential Development Stamp Duty​

I also propose to extend the Residential Development Stamp Duty Refund Scheme to the end of 2025.
In place since 2017, this is a scheme whereby a portion of the stamp duty paid on the acquisition of non-residential land is refunded where that land is subsequently developed for residential purposes.
The net minimum stamp duty payable after a refund is 2 per cent, whereas the normal rate for non-residential property is 7½ per cent. To the end of 2021, this scheme had been availed of in respect of projects that have delivered over 15,000 residential units.
 
Brendan Burgess said:
The tax will apply to residential properties which are occupied for less than 30 days in a twelve month period. There will be a number of exemptions to ensure that owners are not unfairly charged where the property may be vacant for a genuine reason.
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Seamus Coffey looked at this and in most cases where a reason could be discerned it was things like: renovation, bereavement, resident nursing home, house on the market, etc.

Good luck taxing those.....
 
The vacant homes tax will achieve very little. Derelict properties (unfit for human habitation) are exempt from property tax in any case. For holiday homes - occupying them for more than six weeks a year is not a very high car to hit even without letting then out, surely this could be easily organised between a group of family and friends. In addition most holiday homes are in rural areas where property tax is low. And of course it is self declared. Bit of a joke really.
 
elcato said:
What does the second bit mean ?
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The current rules (see below) mean that a property has to have been vacant for 12 months for the landlord to claim pre-letting expenses. This will be halved.


The section applies to expenditure on a premises which has been vacant for at least twelve months and which is subsequently let as a residential premises between 25 December 2017 (the date of the passing of Finance Act 2017) and 31 December 2024. A ‘vacant premises’ means any premises that is not occupied for the entire twelve months before the ‘specified day’. The ‘specified day’ means the day on or after 25 December 2017 on which a vacant premises is first let as a residential premises following the end of the period during which it was not occupied.
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Step 1. Government give 500 euro to everyone to spend on rent.
Step 2. Rents go up by 500 euro.
Step 3......eh Government give 500 euro to everyone to spend on rent.
 
The previous rent allowance was also a good way of smoking out non tax paying landlords. The tenants needed landlords ppsn to claim. I don’t know what details are required this time around.
 
AndroidMan said:
Does this apply to tenants that are on a rent a room agreement?
Will that tenant be able to avail of this?
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It's not clear from what has been published so far; the note refers to 'PPR' and I believe there will be a requirement for the tenancy to be registered with RTB, which isn't the case currently for rent a room.
 
Does anyone know if this credit is per household or per taxpayer. Myself and wife are assessed separately for tax. Are we both entitled to claim it?

EDIT: Just see it is expected to be on a individual basis except for married couples or people in civil partnerships. I presume that means we are assessed individually, we are both entitled to claim it.
 
Sunny said:
Does anyone know if this credit is per household or per taxpayer. Myself and wife are assessed separately for tax. Are we both entitled to claim it?
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Interesting question; my guess (and it is only a guess at present) is that if they go down the 'registered with RTB' route, it will be the person (s) named on the tenancy who can claim the credit.
 
Sunny said:
Does anyone know if this credit is per household or per taxpayer. Myself and wife are assessed separately for tax. Are we both entitled to claim it?

EDIT: Just see it is expected to be on a individual basis except for married couples or people in civil partnerships. I presume that means we are assessed individually, we are both entitled to claim it.
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do you have a link?
 
according to link posted by Sunny (and as I guessed myself) - "and the landlord must be registered with the Residential Tenancies Board (RTB)"

if you are renting rooms shared in your home, you don't need to register with RTB
 
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