Residential Premises Rental Income Relief (RPRIR) 2024 Tax Year - How to claim

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Renner

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It may be too early, but if other early birds are trying to file a form 11 for rental income, have you found the section for the landlord tax relief for the 2024 tax year?

1. Revenues website says: locate the Residential Premises Rental Income Relief section on form 11

Doesnt exist for me

2. The booklet on the relief "Part 15-03_04" states to claim on form 11 on a self-assessment basis: "to calculate the amount of RPRIR to which they are entitled. This involves calculating the Case V rental income from their qualifying premises, after deduction of capital allowances relief for any Case V losses forward."

Which is vague enough not to explain how to actually do it unless one was to simply deduct the relevant amount from the gross rental income after allowances to get the correct relief amount.

3. Messaged them for clarification several times on my inquiries, they don't reply.


Point 3 suggests they probably haven't incorporated it into the form 11 yet, despite knowing about it for years. Its possibly because I'm a nonresident landlord that it's not showing up either. Although I've gone through the publicly available information carefully and no-where does it say resident landlords only.

BTW you need to hold a valid tax clearance certificate issued before 31st of December 2024, which I doubt everybody knows about and seems like a way to automatically exclude lots of people. I do have the certificate though.

Anybody have any views or experience on claiming the relief yet or still waiting to see?

Thanks,

EDIT: I checked it again for the 10th time this month just after posting and they literally just added it in to the "Irish Rental Income" section where it should be. I'll leave the post here as a reminder to other users where to find it and to remember to claim it (assuming you got the tax clearance cert issued in 2024).
 
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Renner said:
I checked it again for the 10th time this month just after posting and they literally just added it in to the "Irish Rental Income" section where it should be. I'll leave the post here as a reminder to other users where to find it and to remember to claim it (assuming you got the tax clearance cert issued in 2024).
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You're right. There is a new section in Form 11 in 'Irish Rental Income' which looks to have just gone live.

However, I'm not sure ROS is calculating the correct tax due when a taxpayer proceeds to the 'Calculate' section.

The legislation (Section 480C TCA) states that a person shall be entitled to a tax credit to the lesser of €600 or 20% of rental profits in 2024.

However, ROS is deducting the €600 (or alternative amount if applicable) from the "Profit from Letting Premises" up in Total Income but the €600 should instead be a tax credit and itemised in "Credits / Reliefs set against Tax on Income".
 
Yes I found that a bit strange too. I assumed (like you) that its €600 off our tax bill but has been calculated more like reducing your income by that amount. The marginal tax rate for nonresident landlords is 20% so the actual amount for me ended up being €120. I would assume for resident landlords its higher, but still not so flash.

Keep in mind too if you have multiple properties, you only get the relief on one property and if you didn't know to get a tax clearance cert before the end of last year, they'll use that to exclude you too. Have to be RTB and LPT compliant, which is fair enough.

But overall not great. They brought in a relief with several years advanced notice and didn't provide a way to claim it initially, then it turns out to pretty much just cover the RTB registration fee which has been changed to yearly.
 
This is a very risky relief to claim, as eligibility is contingent on a wide range of conditions some of which you won't satisfy until 4 years time. For example, you must remain a landlord for the entire 4 years and your eligibility disappears once the property is sold or otherwise no longer let.

Also, if you didn't have a current Tax Clearance Certificate at 31 December 2024, you're already excluded.

There is talk among accountants that it should not be claimed until the 4-year period is nearly up.
 
I personally wouldn't view it that way. The tax clearance part is straight forward. You cant claim if you didn't put the cert through in time. As for the clawback, well if your expecting to rent for the next four years there's no reason why not. If circumstances change then you can pay it back. It doesn't look like its going to be much anyway and not sure if they'll apply interest, so worth doing imo.

I think the suggestion by those accountants is better in terms of meeting the conditions, but also waiting 4 years to actually receive any relief.
 
Renner said:
Yes I found that a bit strange too. I assumed (like you) that its €600 off our tax bill but has been calculated more like reducing your income by that amount.
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I've sent in a query to MyEnquiries. I'll come back to this thread once I have more information.
 
First time poster [go easy please!]. I file my form 11 every year [joint with wife] which is how I've been paying tax on rental income for one property. I had never considered applying for a tax clearance certificate as I haven't needed one for any of the usual things that one would need a tax clearance cert for [we're both PAYE workers, one rental property, not business owners or anything]. I had considered the fact that my Form 11 always gets approved and Revenue issue me a "Full Acknowledgement" statement etc. as confirmation that they're happy with my submission [i.e. I'm "cleared" for the year in question!]. Seeing above that I may be excluded from the €600 RPRIR for 2024 because I didn't apply for a cert before end of last year.

Is that the case? Surely there must be a way to resolve this [e.g. get Revenue now to issue a cert covering the same period]? Would they genuinely be so petty as to not let someone claim because of this?
 
Wasn't aware of this trip hazard either. Don't have a tax clearance certificate before 31 Dec either.
 
johncb said:
Would they genuinely be so petty as to not let someone claim because of this?
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It's not being petty - it's simply one of the qualifying criteria for claiming this relief.

Qualifying conditions for claiming the relief

This page outlines the qualifying conditions for claiming the relief
www.revenue.ie www.revenue.ie

Qualifying conditions for claiming the relief​

To claim the relief, on 31 December in the year in respect of which relief is being claimed, you must:
  • own the qualifying residential premises
  • hold a valid Tax Clearance Certificate,
and
  • be Local Property Tax (LPT) compliant.
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Its absurd when you think about. They want you to get a clearance cert. from (Revenue) to prove to (Revenue) so you can get the tax relief from (Revenue).

Does nobody in their organisation know how to create a database of who's in good standing and have it automatically cross-check like other tax agencies.

I'm not sure why the cut-off date either. If your in good standing on the 31st of December, you can be in good standing on the 1st of January. I guess it's either maliciousness (exclude more people) or incompetence (incapable of automating things within their own organisation).

You could get one now and enquire with them to see if that will cover it but if they are operating literally, as tax authorities typically do, it means your excluded for 2024. The bright side is its increasing for the next 3 years so put it on your list going forward.
 
"It's not being petty - it's simply one of the qualifying criteria for claiming this relief."

The qualifying criteria are indeed ridiculously petty.

It's the ultimate "Yes, Minister" scheme.
 
@johncb "Seeing above that I may be excluded from the €600 RPRIR for 2024 because I didn't apply for a cert before end of last year"

My understanding is that you're excluded from the scheme for the entire 4 years, not just 2024 (at least by my understanding).
Clarification: Per: https://www.revenue.ie/en/tax-profe...ains-tax-corporation-tax/part-15/15-03-04.pdf page 4

In this case, the property is a qualifying premises. The landlord is eligible to claim RPRIR for 2024 provided they meet the other requirements for claiming relief including complying with their LPT obligations in respect of all qualifying premises and holding valid tax clearance on 31 December in the year for which relief is being claimed.
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...it looks like not having a valid tax clearance cert on 31 December 2024 will rule you out only for 2024. But if Revenue unilaterally withdraw your tax clearance cert in the meantime and it's not renewed by 31 December 2025, you'll lose it for that year too.


You still have a right to feel aggrieved - this is outrageous.
 
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Does the underlying law for the relief, not just the Revenue website, mention this point about the tax clearance cert?
 
Yeah, grand, I get that - "petty" might not be the right word. But the intent is that the relief is only claimable by tax compliant landlords - and I am one of those. Anyway, I called Revenue to ask - they said to just put in for a tax clearance cert now and it'll be fine - which I did, taking all of about 5 seconds.

Similar to comments from others, the online form 11 does not seem to be working properly for me for this issue. I get the €600 added to "Capital Allowances / Losses / PAYE Expenses" as "Capped Relief for 2024" on the calculate page, but the "Less Capital Allowances/Losses/PAYE Expenses" total in the next section isn't updated accordingly, so there's no reduction in overall tax payable.
 
That's good they are being reasonable regarding the tax clearance cert. and also that it's available now on form 11.

As it stands its reducing your tax payable as it's reducing your income by €600. ie. for me its €600 * 20% so only €120 for 2024. As resident landlords I'm gonna assume its around €240 for most here. I found to get it to populate the final calculations you had to go continue through the different pages individually.

AAAContributor made the point above the legislation states its a tax credit, which should mean getting the entire amount instead of just a percentage @ your marginal tax rate. I guess that's the last thing we have to clear up and I believe waiting for a response on that enquiry.
 
@Renner I'm not sure how it works if you're non-resident, but for resident landlords, it's 20% of €3000 (or less if your rental profit is lower). So it should be as simple as a tax credit of €600. I don't believe it operates by reducing your taxable income by €600. If they were to apply it as a reduction in your taxable profit on the income, then that would likely lower the amount liable for USC and PRSI - which isn't the intent. Anyway, if your profit is over 3k, it doesn't matter - you're capped at €600 reduction. Seems like it's not been properly implemented on the form 11 yet anyway, so best wait a while for it to work itself out.

Should also add that the nice person I spoke with in Revenue made a note on my record that she'd told me about it being fine to do the tax clearance now [didn't sound like it was a standard rule, she might have been making an exception for me]. Maybe if others are relying on me having stated what happened to me, it'd be a good idea to give them a call about it.

This is how it calculates itself on my form 11.

1738330999212.png
 
@johncb That's on the rental income page but I'm referring to the final calculations of the return when you have all other details filled out. Definitely seems to be running it at €600 * your marginal tax rate or reducing your rental profit by €600, which is the same thing.

AAAContributor has stated the same thing above noting that it's being deducted from "Profit from Letting Premises", obviously before your tax rates applied.

You can easily test this by removing it and going through to the final calculations page. Then putting back in again to check the difference. Mine is €120 because my marginal rate is 20%. Most here I suspect would be into the 40% tax rate so probably around €240, but you wont see clearly until you've filled in everything. I think it said in the guidance that it won't affect USC/PRSI etc.

Anyway the bigger question is obviously whether its supposed to work this way or be an actual tax credit of €600.
 
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Renner said:
Anyway the bigger question is obviously whether its supposed to work this way or be an actual tax credit of €600.
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I believe it's not working properly - the person I spoke to in Revenue was surprised at how it was not calculating properly for me. I'm going to leave it a while anyway, see if it's updated to work correctly.

I can't post a link here, but the Oireachtas website has the Finance Minster answering about this relief as follows:

Rental Income Relief (RPRIR). RPRIR will provide relief, at the standard rate, on a portion of a landlord’s residential rental income. The relief will be €3,000 in the tax year 2024, €4,000 in the tax year 2025 and €5,000 in the tax years 2026 and 2027, which is equivalent to a tax credit of up to €600, €800 and €1,000 respectively.

Also, the Finance Act 2024 states as follows:

1738407993793.png
 
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