According to a recent survey, nearly 50% of all eligible claimants of the tax relief scheme are yet to have claimed. With rents soaring at an all-time high, this article looks at why more tenants have not claimed the rebate.
What is the Scheme?
The rental tax credit scheme is an incentive offered by the government to ease the pressure on renters. Under the incentive, renters are able to claim €500 in tax relief or a €1000 if they are a couple claiming jointly.
The new scheme is currently available from 2022 up to 2025 but this may be extended depending on the economic client.
In order to benefit from the rent tax credit you must have, you are required to have an income tax to offset it.
You can only claim the rebate on your main residence.
Who is Eligible?
To qualify for a rental tax credit, you must have legally entered into a tenancy and the tenancy must be registered with the RTB, unless they are tenancies that do not need to be registered with the RTB such as rent-a-room or student lettings.
Rent-a-room or digs are not eligible if:
- You are the parent of the tenant
- If the landlord is related to the tenant
Supported Tenancy
Unfortunately supported tenancies are not eligible for the rental tax credit. Supported housing is whereby the tenant does not pay the rent, it’s covered by a local authority or government agency. HAP, Rent Supplements and Rental Accommodation Schemes are all considered “Supported Housing”.
Who hasn’t claimed?
Although the scheme has existed since 2022, a recent investigation undertaken by RTE news showed that of the 400,000 properties eligible for the payment only 170,000 have made a claim.
What will happen next?
There have been some mixed views on the effectiveness of the scheme, with such a sparse uptake of the scheme at a time when finances are harder than ever, it’s called into question why more haven’t made a claim. Many feel that because tenants can only claim when a property is registered with the RTB is causing issues for tenants when making an application.
Property Management Ireland
KPM has helped countless landlords ensure that their properties are kept in good c