Rent Relief / Tax allowance

PixelTrawler

Rte reporting rent relief being phased out over 8 years.
Taxcalc.ie online calulator indicate that the tax allowance gone now.

"In addition, the phasing out of Rent Relief over eight years will save €97m in a full year, "

http://www.rte.ie/news/2010/1207/live_budget_updates.html

Anyone know the full story?

wonderfulname

Rent Relief to be phased out over 8 years; the same timeline as
previously announced for Mortgage Interest Relief.

From "Summary of 2011 Budget Measures"

George Orwell 1982

I can't believe they have done this. Basically those of us smart enough not to buy during the boom are getting penalised for renting. Feckers.

wonderfulname

George Orwell 1982 wrote: »

I can't believe they have done this. Basically those of us smart enough not to buy during the boom are getting penalised for renting. Feckers.

As above;

...the same timeline as previously announced for Mortgage Interest Relief.

jerry2623

• From 1 January 2011, this will be restricted to income
from the Section 23 property itself (currently such income
can be set against all rental income).

• At end of 10 year holding period, any unused relief will
be lost. If property is sold within this period, the new
owner will not get Section 23 relief and the seller
continues to be subject to a clawback of relief already
given.

• For Section 23 properties yet to be sold, for which the
relief has yet to be claimed, the 10-year qualifying period
will start on 30 June 2011 regardless of the date of the
first qualifying lease. Therefore, in such cases no Section
23 relief will be available after 30 June 2021.

• Residential owner-occupier relief is unaffected by these
changes.

tHE vAGGABOND

I can't believe they have done this. Basically those of us smart enough not to buy during the boom are getting penalised for renting

We can call it a "smug tax"

wicorthered

jerry2623 wrote: »

• From 1 January 2011, this will be restricted to income
from the Section 23 property itself (currently such income
can be set against all rental income).

• At end of 10 year holding period, any unused relief will
be lost. If property is sold within this period, the new
owner will not get Section 23 relief and the seller
continues to be subject to a clawback of relief already
given.

• For Section 23 properties yet to be sold, for which the
relief has yet to be claimed, the 10-year qualifying period
will start on 30 June 2011 regardless of the date of the
first qualifying lease. Therefore, in such cases no Section
23 relief will be available after 30 June 2021.

• Residential owner-occupier relief is unaffected by these
changes.

So what does all that mean??

GusherING

Rent relief will be phased out on the same basis as mortgage interest relief.

This means that the rent relief tax credit will go in 2017, at the same time as the mortgage interest relief.

So both home owners and renters will get hit equitably at the same time.

wicorthered

Looks like its dropping for 20% of 2000 down to 1600 so a loss of 80 euro in credits a year!! Not bad I though it was gone completely!!

masterkio

can some one clearly state the change in rent allowance for the coming year.i here alot of figures being thrown around..
For,

single person..?
married person..?
couple..?

thanks

liu83

here's the figures

highgiant1985

liu83 wrote: »

here's the figures

am I reading this right folks?

It says

"claimants who were not renting at 7th Dec 2010 and who subsequently enter into a rental agreement will not be able to claim relief".


So basically A) you can't claim the rent relief if you weren't already renting and If you decide you want to change where your renting you would enter into a new lease so would lose any rent relief again?

masterkio

i see what you mean.
it very vague statement...
Any one one able to clarafy this..?

modmuffin

highgiant1985 wrote: »

am I reading this right folks?

It says

"claimants who were not renting at 7th Dec 2010 and who subsequently enter into a rental agreement will not be able to claim relief".


So basically A) you can't claim the rent relief if you weren't already renting and If you decide you want to change where your renting you would enter into a new lease so would lose any rent relief again?

Thats how it reads alright. Doesnt seem very fair and should really be reviewed if that is the case.

bmarley

George Orwell 1982 wrote: »

I can't believe they have done this. Basically those of us smart enough not to buy during the boom are getting penalised for renting. Feckers.

Those of us who thought we were smart buying are being penalised too...so it's the same in any case

bmarley

jerry2623 wrote: »

• From 1 January 2011, this will be restricted to income
from the Section 23 property itself (currently such income
can be set against all rental income).

• At end of 10 year holding period, any unused relief will
be lost. If property is sold within this period, the new
owner will not get Section 23 relief and the seller
continues to be subject to a clawback of relief already
given.

• For Section 23 properties yet to be sold, for which the
relief has yet to be claimed, the 10-year qualifying period
will start on 30 June 2011 regardless of the date of the
first qualifying lease. Therefore, in such cases no Section
23 relief will be available after 30 June 2021.

• Residential owner-occupier relief is unaffected by these
changes.

Confused, I didn't see this post so it won't effect residential owner-occupier relief.....I hope not, what with rising interest rates i'm just about managing as it is.