Tax relieve for Tenants-Details-20% standard rate

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Tax relieve for Tenants-Details-20% standard rate

Post by Chandu » Wed Feb 18, 2004 1:51 pm ... nants.html

Tax relief for tenants
· Rules
· Rates
· How to apply
· Where to apply
If you live in private rented accommodation in Ireland and pay income tax, you may be eligible for tax relief on part of your rent.

In order to claim tax relief, you must be paying rent for private rented accommodation which is used as your sole or main residence. This includes accommodation such as a bedsit, flat, apartment or house.

You cannot claim tax relief for rent paid as follows:
· To a local authority or a State Agency and,
· Rent paid under a lease agreement for 50 years or more.

If your landlord is resident in Ireland, a receipt for rent you have paid must be provided if and when it is requested by Revenue. This rule applies regardless of whether you pay your rent directly to the landlord or to an agent on behalf of the landlord. Each receipt must show the following:

·Landlord's name, PPS Number and address
·Amount of rent which you have paid
·Period of time covered by the receipt

Landlords that live outside Ireland
If your landlord lives outside Ireland and you pay rent directly to them or to their bank account located in Ireland or abroad, you must deduct tax at the standard rate (20%) from the gross amount which you pay.

My landlord lives in Germany and I pay them gross rent per month of 500 euro. (500 euro x 20% = 100 euro). I now deduct 100 euro from the gross rent I pay (500 euro - 100 euro = 400 euro). My rent therefore is 400 euro per month.

If you are a PAYE employee and are paying rent to a landlord living outside Ireland, you account for the tax you deduct by applying for a tax credit and completing Form Rent 1 (see how to apply). If you pay tax by self-assessment, you account for the tax you deduct in your notice of self-assessment which you send to Revenue. Failing to deduct tax from rent you pay to a landlord living outside Ireland will mean that you (and not the landlord) will be liable for any tax which should have been deducted.

Tax relief at the standard rate of 20% on private rented accommodation is available from 1st January-31st December 2004 as follows: (To calculate what this is worth to you each year after tax, you multiply the tax credit amounts below by 20%).
Age Single Tax Credit Married/Widowed Tax Credit
55 years 1,270 euro 2,540 euro

over 55 years
(max. relief) 2,540 euro 5080 euro

How to apply
To claim rent relief, simply complete Form Rent 1 (pdf) and send to your tax office. (Copies of the form are also available from your local tax office). If you have any difficulty completing the form or supplying any of the information requested, staff in your tax office will be happy to help you. ... nants.html

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Post by srkreddy » Wed Feb 18, 2004 5:12 pm

still oyu will be paid only 508 by credit , if oyu are married , 254 for a single

siva ram

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Post by dublin_guy » Thu Jul 15, 2004 12:52 pm

Say you pay a rent of Euro 10000 annually. Then how much maximum rebate on tax can you claim annually over it. I would appreciate any of your views on it. Thanks.

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Post by thambi » Thu Jul 15, 2004 1:51 pm

whatever rent you pay, if you are married you get max 508, and 254 for single.

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Post by dublin_guy » Thu Jul 15, 2004 1:59 pm

So that's it 508 or 254. But the whole amount of House rent will be taxable at the same rate as that of full income ?

Also say if you buy a car on loan then what is the tax saving you can do for it ?

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Post by thambi » Thu Jul 15, 2004 2:23 pm

0.00 euro

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Post by Sreenath » Thu Jul 15, 2004 3:08 pm

It sounds good for me because I never claimed tax before though I have been living here from past three and half years. Is there any way I can claim now if so how could I do that. Thanks in advance.

:arrow: Yuva

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