Finance (No.2) Act 2023

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Exemption from income tax of rental income subject to registration with Residential Tenancies Board

20. Part 30 of the Principal Act is amended in Chapter 4 by the insertion of the following section after section 790E:

“790F. (1) In this section—

‘Act of 2004’ means the Residential Tenancies Act 2004 ;

‘approved retirement fund’ has the same meaning as in section 784A; ‘Board’ means the Residential Tenancies Board;

‘exempt approved scheme’ shall be construed in accordance with section 774;

‘lease’ means any lease or tenancy agreement in respect of—

(a) a residential premises required to be registered under Part 7 of the Act of 2004 by the person chargeable, or

(b) a dwelling referred to in section 3(2) of the Act of 2004;

‘PEPP’ and ‘PEPP provider’ have the same meaning, respectively, as in Chapter 2D of this Part;

‘person chargeable’, in respect of the rental income or the profits or gains arising from any rent in respect of a residential property, means—

(a) in the case of an exempt approved scheme, the trustees of the scheme,

(b) in the case of a RAC, the persons by and to whom premiums are payable under any contract for the time being approved under section 784,

(c) in the case of a RAC established under trust, the trustees or other persons having the management of any trust scheme so approved,

(d) in the case of an approved retirement fund, the qualifying fund manager acting on behalf of the person beneficially entitled to the assets of the approved retirement fund,

(e) in the case of a PRSA, the PRSA administrator, or

(f) in the case of a PEPP, a PEPP provider;

‘PRSA’ and ‘PRSA administrator’ has the same meaning, respectively, as in Chapter 2A of this Part;

‘qualifying fund manager’ has the same meaning as in section 784A;

‘qualifying lease’ means a lease granted by the person chargeable to a tenant residing in a residential property;

‘RAC’ means an annuity contract or a trust scheme or part of a trust scheme for the time being approved by the Revenue Commissioners under section 784;

‘register’ means the residential tenancies register established and maintained by the Board under section 127 of the Act of 2004;

‘residential property’, in relation to a qualifying lease, means a residential property in respect of which rent or similar payments are payable to the person chargeable.

(2) With effect from 1 January 2024, where a person chargeable is allowed an exemption from income tax under section 774(3), 784(4), 784A(2), 787I(1) or 787AC(1), or an exemption from capital gains tax under section 784A(2), as the case may be, in relation to rents receivable from a qualifying lease, the exemption concerned shall not be allowed unless the tenancy is registered under Part 7 of the Act of 2004 in respect of the qualifying lease.

(3) For the purposes of subsection (2)—

(a) the Revenue Commissioners may by notice in writing require the person chargeable to provide, within 30 days of the date of such notice, evidence that the qualifying lease has been registered under Part 7 of the Act of 2004, and

(b) provision by the person chargeable of a copy of the entry in respect of the residential property concerned in the published register provided under section 132 of the Act of 2004 shall be accepted as evidence that the registration requirement referred to in subsection (2) has been complied with.”.