Rent tax credit

HcksawJimDuggan

In order to be eligible to claim the rent tax credit, the individual must have been renting prior to 7 December 2010.

Could someone clarify the following situation for an individual that is renting prior to 7 December 2010:
- claim's the rent tax credit as normal for 2010 & 2011
- does not claim rent tax credit for 2012 & 2013 (moves back to home place)

Are they eligible to claim the rent tax credit for 2014 (max credit €160), provided they are paying rent or has the fact that they ceased claiming it in 2012 & 2013 rule them out from claiming it for years 2014 - 2017 as it is been phased out.

Mr. Incognito

If you were not claiming since 2010 and carrying it over you cannot claim it now.

gerbilgranny

No, they are not eligible for the credit in 2014. As it's being phased out, the only people who are eligible for the credit at this point are those who have been renting continuously since prior to 7/12/10. Although the credit is eligible if someone changed landlords/address of rented accommodation since then, provided there was no time when they were not paying rent.

cerastes

Good question, this is something I was wondering what the situation is as I heard its being phased out. So Im answering, rather than just following to get down what I thought and see have I been correct.

My understanding up to now has been (and I havent looked at this in a while).
The allowance was a set amount, it was then allocated at the marginal rate which has been €1650 for a while

at 20% is a value of €330 or €27.50 a month.
and they are scrapping this?

cerastes

gerbilgranny wrote: »

No, they are not eligible for the credit in 2014. As it's being phased out, the only people who are eligible for the credit at this point are those who have been renting continuously since prior to 7/12/10. Although the credit is eligible if someone changed landlords/address of rented accommodation since then, provided there was no time when they were not paying rent.

I dont get how they are applying this logic??
except if its a matter the starting of phasing it out to gradually lock down access to the credit, to prevent new applications.

HcksawJimDuggan

Cheers for the replies.

Does anyone have a link to where it states that the credit is lost if the credit has not continuosly been claimed for the years 2010 - 2017.

The revenue website is pretty vague imo:

http://www.revenue.ie/en/tax/it/credits/rent-credit.html

"The credit for the years 2011 onwards applies to individuals who were renting a propety on 7 December 2010. No credit is due to individuals who began renting after 7 December 2010"

In example provided above, the individual was renting a property on 7 December 2010.

nompere

The legislation seems pretty clear to me:

(b) Notwithstanding paragraph (a), this
section shall continue to apply for the
year of assessment 2010 and each subsequent
year of assessment up to and
including the year of assessment 2017 in
respect of rent paid by a tenant who on
7 December 2010 is paying rent under a
tenancy.’’.


That's S. 14(b) FA 2011.

It doesn't say that the tenancy has to be continuous, or that relief ceases if someone ends a tenancy on (say) 1 March 2011 and starts another tenancy on (say) 1 March 2012. It just says that the relief applies to someone who pays rent up to 31 December 2017 if that person was paying rent under a tenancy on 7 December 2010.

It certainly isn't proper, either for Revenue or a taxpayer, to read into the legislation words that aren't actually there.

HcksawJimDuggan

That's how I interpreted it from any information I could find on it i.e. that the individual could go back to claim it in 2014 having not claimed in 2013.

The Posters above seem to be pretty sure that the individual is no longer eligible to claim the credit if the rent is not continuous but it doesn't specifically say that in the legislation.