A GOVERNMENT WORKING group has been set up to review what tax breaks could help renters in the next Budget.
When asked by TheJournal.ie if the rent tax credit could be re-introduced, Housing Minister Simon Coveney hinted it could be a possibility, but said ultimately it would be a decision for Finance Minister Michael Noonan.
The rental tax credit, which was phased out under the austerity measures during the recession, meant those paying for private rented accommodation were eligible for rent relief.
Rent relief currently only applies to individuals who were renting a property on and before 7 December 2010. No credit is due to individuals who began renting after that date.
Tax relief
What we have agreed with Michael Noonan is that we will set up, and he will chair, a working group to look at taxation in the rental market.
In relation to the re-introduction of the rent tax relief, he said:
That is a decision for the finance minister – it is a decision after a lot of discussion and stakeholder discussion and so on – but that is now underway, so we will have to wait and see what the outcome is.
Coveney said in the last Budget there were a number of tax incentives targeted at landlords, which aimed to boost supply.
“Mortgage interest relief is moving back towards 100% interest relief. It was reduced down to 75% as cost saving measure a number of years ago, but we are looking to reverse that now. Again for landlords, we looked at the increased threshold for tax free income for the rent-a-room scheme.
“But I do think we need to look at how we use the tax system to increase supply and support people who are under pressure renting.”
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