Below is an extract from the Revenue Commissioners budget summary. This outlines the phasing out of the tax relief for those renting private property as their residence.
Those in tenancies prior to 7 December 2010 can continue to claim the rent credit. However it appears (from the wording in the Finance Act) that any new entrants to the rental market will not be able to claim this credit. The wording of the Finance Act states the credit will apply
“in respect of rent paid by a tenant who on 7 December 2010 is paying rent under a tenancy”.
Rent Tax Relief
The measures announced in Budget 2011 are unchanged:
|Relief for rent credit will be withdrawn on a phased basis over 7 years by reducing the amount of rent that can be relieved at the standard rate of income tax as indicated in the following table. Tax Year||Single Under 55||Single Over 55||Widowed or a Surviving Civil Partner / Married or in a Civil Partnership, under 55||Widowed or a Surviving Civil Partner / Married or in a Civil Partnership, over 55|
Claimants who were not renting at 7 December 2010 and who subsequently enter into a rental agreement will not be able to claim relief.