Finance (No.2) Act 2023

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Amendment of section 473B of Principal Act (Rent tax credit)

11. (1) Section 473B of the Principal Act is amended—

(a) by the insertion of the following subsection after subsection (6):

“(6A) Notwithstanding anything in this section, where, in respect of a year of assessment—

(a) an individual is entitled, in respect of a residential property, to an allowance to which subsection (1), (1A) or (1B) of section 836 applies, or

(b) an individual is allowed, in accordance with section 836(2), a deduction under section 114 in respect of expenses in maintaining a residential property,

this section shall not apply to a qualifying payment made in that year in respect of that residential property.”,

(b) by the substitution of the following subsection for subsection (8):

“(8) Where—

(a) a claimant, or

(b) in a case where subsection (4) applies, a claimant’s spouse or civil partner, proves that he or she made a qualifying payment in respect of a residential property used by his or her child as his or her principal private residence the claimant shall, upon making a claim in that regard, be entitled to the same rent tax credit as if the qualifying payment was made in respect of a residential property which was used by the claimant as his or her own principal private residence where—

(i) neither the individual nor the child is a relative of the landlord,

(ii) the child was undertaking an approved course and using the property to facilitate his or her participation in that course during the period to which the qualifying payment relates, and

(iii) in the case of a tenancy which is required to be registered under Part 7 of the Residential Tenancies Act 2004 , the tenancy complies with that requirement.”,

and

(c) in subsection (13)—

(i) by the substitution of “€750” for “€500”, and

(ii) by the substitution of “€1,500” for “€1,000”.

(2) Paragraph (b) of subsection (1) shall be deemed to have come into operation on 1 January 2022.