CONFIRMED: Renters to benefit from €500 tax credit as part of Budget 2023 2 months ago

CONFIRMED: Renters to benefit from €500 tax credit as part of Budget 2023

Around 400,000 people are expected to benefit from the credit.

Finance Minister Paschal Donohoe has confirmed that the Government will introduce a new rent tax credit valued at €500 per year as part of Budget 2023.

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Speaking in the Dáil for the Budget announcement, the Minister said that the credit is for taxpayers paying rent on their principal private residence and is aimed at those who do not receive any other housing supports.

It will apply for 2023 and for subsequent years but it may also be claimed in respect of rent paid in 2022.

Around 400,000 people are expected to benefit from the credit, according to Donohoe.

Also during the announcement, the Minister said that "maximising the use of homes already built" is a key objective of the Government.

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In keeping with this, he stated that a vacant homes tax will be introduced 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 12-month period," Donohoe announced.

"It will operate on a self-assessment basis and will be administered by the Revenue Commission.

"The tax will be charged at a rate equal to three times the property's existing basic local property tax rate."

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However, he also said that there will be a number of exemptions to the tax to ensure that owners are not "unfairly charged" in cases where properties may be vacant for a genuine reason.

The Minister also confirmed that the Help to Buy Scheme will be continued at current rates until the end of 2024.

In a statement following the Budget 2023 announcement, national housing and homeless charity Peter McVerry Trust said it strongly welcomed the new vacant homes tax.

“In March 2017, Peter McVerry Trust first proposed a vacant homes tax, at that stage 63% of the public supported such a measure," its CEO Pat Doyle stated.

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"Since then the awareness and understanding of the potential of vacant homes to tackle the housing crisis has improved and deepened.

“We believe that the measure offers hope and the prospect of new social housing in areas of need, and communities can look forward to less and less vacant homes blighting their communities."