Finance (No.2) Act 2023
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Amendment of Part 15 of Principal Act (personal allowances and reliefs, etc.) | ||
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21. Part 15 of the Principal Act is amended— | ||
(a) in section 458, in Part 2 of the Table to that section, by the insertion of “Section 480C” after “Section 478A”, and | ||
(b) in Chapter 1, by the insertion of the following section after section 480B: | ||
“Residential premises rental income relief | ||
480C. (1) In this section— | ||
‘Act of 1982’ means the Housing (Private Rented Dwellings) Act 1982 ; | ||
‘Act of 2004’ means the Residential Tenancies Act 2004 ; | ||
‘appropriate percentage’, in relation to a year of assessment, means a percentage equal to the standard rate of tax for that year; | ||
‘first year of assessment’, in relation to a person chargeable, means the year of assessment in which the person chargeable first claims a tax credit under this section; | ||
‘ownership’, in relation to the ownership of a premises by a person, includes ownership of the premises by the person jointly with another person; | ||
‘person chargeable’ means an individual who is a person chargeable within the meaning of section 96; | ||
‘qualifying premises’ means a rented residential premises situated in the State— | ||
(a) that on the specified date is owned by a person chargeable, and | ||
(b) to which, on that date, one of the following subparagraphs applies: | ||
(i) the premises is occupied by a tenant under a tenancy registered under Part 7 of the Act of 2004 by the person chargeable; | ||
(ii) the premises is a premises to which Part II of the Act of 1982 applies and is occupied by a tenant; | ||
(iii) the premises is let to a public authority (within the meaning of the Act of 2004) and is occupied by a tenant; | ||
(iv) the premises is being actively marketed for rent with a view to the person chargeable entering into a residential tenancy agreement with a willing tenant; ‘relevant amount’, in relation to a person chargeable in a year of assessment, means the amount of profits or gains arising from all qualifying premises owned by the person chargeable and on which the person chargeable is assessed to tax under Case V of Schedule D after any allowance is made in charging the income under Case V of Schedule D in accordance with section 305(1)(a) or relief for losses under section 384; | ||
‘relevant year of assessment’ in relation to a person chargeable, means any of the 4 consecutive years of assessment beginning with the first year of assessment in relation to the person; | ||
‘rent’ has the same meaning as it has in section 96; | ||
‘rented residential premises’ has the same meaning as it has in section 96; | ||
‘specified date’ means 31 December in a year of assessment. | ||
(2) In relation to a year of assessment, a person chargeable shall be entitled to a tax credit of the lesser of— | ||
(a) in respect of the year of assessment 2024— | ||
(i) €600, or | ||
(ii) an amount equal to the appropriate percentage of the relevant amount, | ||
(b) in respect of the year of assessment 2025— | ||
(i) €800, or | ||
(ii) an amount equal to the appropriate percentage of the relevant amount, | ||
(c) in respect of the year of assessment 2026— | ||
(i) €1,000, or | ||
(ii) an amount equal to the appropriate percentage of the relevant amount, | ||
and | ||
(d) in respect of the year of assessment 2027— | ||
(i) €1,000, or | ||
(ii) an amount equal to the appropriate percentage of the relevant amount. | ||
(3) This section shall not apply in respect of a person chargeable where any qualifying premises owned by the person is occupied by a tenant who is— | ||
(a) a person connected to the person chargeable by virtue of section 10, | ||
or | ||
(b) an uncle, aunt, niece or nephew of the person chargeable or of a spouse or civil partner of the person chargeable. | ||
(4) This subsection applies in respect of a relevant year of assessment where— | ||
(a) the person chargeable concerned ceases, during the relevant year, to be a person chargeable in respect of any qualifying premises that was owned by that person during the first year of assessment, or | ||
(b) any qualifying premises that was owned by the person chargeable during the first year of assessment is let, during the relevant year, to a tenant to whom paragraph (a) or (b) of subsection (3) applies. | ||
(5) Where subsection (4) applies in respect of a relevant year of assessment— | ||
(a) an amount, the income tax on which, at the standard rate for the year of assessment, is equal to the amount of the tax credit claimed under this section by the person chargeable in that year or any previous year of assessment, shall be deemed to be profits or gains of the person chargeable computed under section 97(1) in the year of assessment, and | ||
(b) assessments shall, as necessary, be made or amended to give effect to this subsection. | ||
(6) A person chargeable shall not be entitled to a tax credit under this section for a year of assessment, unless, on the specified date in that year— | ||
(a) the requirements of the Finance (Local Property Tax) Act 2012 , in relation to the making of returns and the payment of local property tax, have been complied with in respect of all qualifying premises owned by the person chargeable, and | ||
(b) the person chargeable has been issued with a tax clearance certificate in accordance with section 1095 and such tax clearance certificate has not been rescinded under subsection (3A) of that section. | ||
(7) Subject to subsections (8) and (9), where, for any year of assessment, a qualifying premises is owned by more than one person chargeable, the amount of the tax credit under this section to which each such person shall be entitled shall be the amount of the tax credit, calculated in accordance with subsection (2), that is equal to the portion of the Case V profits or gains arising from the qualifying premises to which the person chargeable concerned is entitled. | ||
(8) Subsection (7) shall not operate to affect the entitlement of a person chargeable to a tax credit under this section in respect of a qualifying premises (‘the first-mentioned qualifying premises’), other than the qualifying premises referred to in that subsection, where the first-mentioned qualifying premises is owned solely by the person chargeable. | ||
(9) Where subsection (7) applies to a person chargeable in respect of more than one qualifying premises, the amount of the tax credit under this section to which that person chargeable shall be entitled shall be the higher or highest proportion of the tax credit to which that person chargeable is entitled in respect of any of those qualifying premises. | ||
(10) This section shall apply in respect of the years of assessment 2024, 2025, 2026 and 2027.”. |