There is a certain amount of tax relief available for rent that you can claim:
1.Relocation – the first 3 month’s rent when you move to a new base can be added in full as an expense.
2.Additional tax credit – this can be claimed up to a maximum of €1600 rent per year, but is only allowable at the lower tax rate of 20%.
3.Office use – a certain portion of your rent can be claimed as a business expense. The amount of rent allowed to be claimed (plus utility bills) is now 20% of the total cost. Please note that this does not apply to mortgages which are classed as benefit in kind.
Please note that you CANNOT claim twice for an expense, therefore we normally calculate exactly how much you can claim by way of expenses or an additional tax credit on an annual basis and the information is requested on the ‘End of year’ Tax Return questionnaire.
Rent Tax Relief
This annual relief is being phased out and ONLY applies to tenants who rented a property before 7th December 2010. If a tenant was not renting prior to this date, the annual relief can no longer be claimed.