Lack of clarity on renters tax credit remains

12 October 2022
  • Taoiseach unable to answer questions regarding licensees

Raising the operation of the renters tax credit with An Taoiseach today, Labour Leader Ivana Bacik called for clarity as to who qualifies for the benefit.

Deputy Bacik said people who have renting on the basis of a licence rather than a standard tenancy are none the wiser as to whether they can access the renters credit.

Deputy Bacik said:

“It is of concern that the Taoiseach was unable to answer my questions on who qualifies as a ‘renter’ in the Dáil today.

“I have received correspondence from vulnerable renters who rent their home by way of a licence agreement, rather than as a tenant. They are unclear as to whether or not they can access the rent credit. This is vitally important. In a cost of living crisis, every cent counts for people.

“In response to Parliamentary Questions, the Minister for Housing appeared to answer these concerns by stating that licensees would be entitled to claim the tax credit. However, he referenced only those in the rent-a-room scheme or in student accommodation.

“Again today in the Dáil, the Taoiseach could not provide any clarity on this. If the purpose of this Budget was to give people certainty, renters who are in a licence agreement that does not fall within a rent-a-room scheme or in student accommodation are left with more questions than answers.

“We in Labour remain critical of the tax credit, particularly given its introduction without an emergency eviction ban and a time-limited rent freeze. As if plucked from thin air, a €500 tax credit for renters is unlikely to make much of an impact for the hundreds of thousands of people paying an average of €20,000 in their rented home. For renters in my own constituency, it will effectively amount only to a week’s rent – not enough to make any significant difference. But it is important that all renters would be able to claim it, and we are still unclear as to its full application. Every renter should be entitled to the tax credit announced during the Budget. They need clarity immediately.”

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