THE €750 renters’ tax credit will be increased in Budget 2025 and more money will be pumped into housing supply, Taoiseach Simon Harris has indicated.
It comes as figures presented to Cabinet today show that between 35,000 and 40,000 new homes are forecast to be delivered this year.
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Figures from Housing Minister Darragh O’Brien show that housing completions were up three per cent in the first six months of the year.
The Cabinet also heard that the long-awaited Planning Bill to reform Ireland’s outdated planning system and speed up supply of housing will be completed and passed into law by October 10.
Taoiseach Simon Harris confessed that the Government’s housing targets are too low and need to be increased to around 50,000 per year for the next five years.
The Fine Gael leader said that increasing the supply of housing will be his number one priority in the budget.
The Taoiseach indicated that money obtained by the sale of the State’s shares in banks from the financial crash should be invested in housing.
He also revealed that renters’ tax credit – which was worth €750 this year – will be increased in the budget for next year.
He said: “We’ve taken a number of measures to assist including a renters’ tax credit – I hope we can do more on that in the budget.
“I think it does help to put a little bit of money back in people’s pockets towards the cost of rent.
“But fundamentally, the issue here is around supply and it has to be around making sure that we grow the supply.”
The credit – which can be claimed annually by around 400,000 renters – previously saw single renters get €500 back once they’d paid €2,500 rent in the specific calendar year, or jointly-assessed couples getting back €1,000 once they’d shelled out €5,000 in rent.
HOW TO CLAIM RENT TAX CREDIT
- Log into revenue.ie.
- In the first box, under PAYE Services, click Review your Tax.
- Once you have filled out your basic details and checked your income tax details are correct, you can apply.
- To apply for the tax credit, go to the You and Your Family section, and scroll down to rent tax credit.
- You’ll be asked to fill out your basic details and if you receive any housing support.
- Your PPS number is required and Revenue also asks for the RTB number of the registered property.
- Renters are asked to fill in the landlord’s home address and state if they are resident in Ireland but this section is not essential.
- Claimants are also asked to declare if they’re related to the landlord and whether the property is your main residence.
- The Rent Tax Credit Form is next, which allows users to put in their total rent and calculate what they’re entitled to. The maximum which can be applied for is €2,500 meaning someone paying rent for an entire year would likely have paid well over €2,500 and so be entitled to the full 20 per cent or €500 tax credit. This will amend to €750 then for the year 2024, but €500 will be the maximum claim for tax years 2022 and 2023.
However, this was increased in Budget 2024 to €750 for a single person and €1,500 for jointly assessed couples.
And it has been previously hinted that the payment could be hiked possibly to €1,000 for a single renter and €2,000 for couples.
Quizzed on whether there will be tax breaks for landlords in his budget, the Taoiseach refused to fly any kites and instead had a dig at Sinn Fein who launched their housing strategy this week.
He added: “My priority on this is maximising housing supply and I want to see what more we can do in the budget on the current and capital side to increase housing supply.
“I’ve already made the point that I think the generation that most suffered from the mismanagement of this country in the past that led to the financial collapse of our country should now see the proceeds of the sale of bank shares invested in their future including additional money into housing.
“The Land Development Agency is now beginning to build a significant number of houses. Bizarrely Sinn Fein want to abolish it.
“I want to put more money into it to build more homes and that should be the priority.”
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