What is the new Landlord Tax Relief announced in Budget 2024?

As part of Budget 2024 the Minister is introducing a new landlord tax relief for the years 2024 to 2027. For these years, tax relief at the standard rate of tax will apply to a certain amount of rental income. 

In 2024 the relevant income to be relieved at the standard income tax rate is €3,000.

In 2025, it will be €4,000.

For both 2026 and 2027 it will be €5,000 in each year. 

It is expected this relief will be worth between €600 and €1,000 each year during the lifetime of this scheme. 

As the housing crisis continues the government is hoping to keep more small landlords in the market by introducing this relief.

Where this relief is claimed, please note that the property must be let for a period 4 years from the first year of claim, otherwise the relief will be clawed back. 

Remember this relief commences from the year 2024. Most people will file their Income Tax Return for 2024 in Oct/Nov 2025 so it will take some time to feel the benefit of this measure.

Budget 2024 also includes an increase to the Rent Tax Credit from €500 to €750.

Find our full Budget 2024 Summary here

 

Date published 11 Oct 2023 | Last updated 11 Oct 2023

This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.