A big tax credit was introduced for renters in Budget 2023 which will allow tenants squeezed by the housing crisis to claim as much as €1,000.
The €500 per year relief has been backdated to 2022 so renters can apply for a double tax credit worth €1,000 at the end of this year. Tenants must apply with Revenue to avail of the benefit unveiled as part of the €11bn Budget bonanza.
However, Finance Minister Paschal Donohoe has already said those who "get any other housing supports", such as the Housing Assistance Payment, have been ruled out. It is estimated 400,000 people will benefit from the tax credit.
Read more: Budget calculator 2023: How income tax changes will affect you
The Fine Gael Minister said: "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." The tenant's landlord must be registered with the Rental Tenancy Board for it to be claimed.
The credit is bad news for unregistered landlords who will likely have their details sent to revenue by their tenants given the high value of the credit. The RTB previously estimated there to be 15,000 such landlords who could be in line for hefty fines.
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