Ciarán and Seán are a jointly assessed couple and made rental payments of €1,000 a month in January and February 2023.
Ciarán is the assessable spouse and the couple’s Income Tax liability for 2023, after all other credits, reliefs and allowances, was €24,000.
Ciarán satisfies all conditions of the Rent Tax Credit. Ciarán will be entitled to a credit of €400 in 2023 being the lower of:
Ciarán's Rent Tax Credit
|The total of all rental payments made by Ciarán and Seán of €2,000 at 20%
|The specified amount of €5,000 at 20%
|The amount required to reduce the couple’s Income Tax liability to nil.