Housing tax credits and reliefs

Housing tax credits and reliefs

Budget 2012: there will be no changes in personal tax credits or Stamp Duty rates in 2012.

Tax relief for tenants

If you live in private rented accommodation and pay income tax, you may be eligible for tax relief on part of your rent. More information is available in our document on tax relief for tenants, including a description of who is eligible and how to apply. This scheme is confined to people who were renting at 7 December 2010.

Tax relief on mortgage interest

If you borrow money to buy your home or to repair or improve it, then you may be eligible for tax relief on the loan interest. This tax relief is called mortage interest tax relief and is taken into account by the mortgage lender who reduces the amount of your regular repayments accordingly. More information is available in our document about mortgage interest tax relief.

Rent a Room Relief

If you rent a room in your house to a private tenant, the rental income may be exempt from income tax. To qualify, the rental income must not exceed €10,000 in 2011. Since 1 January 2007, you will not be eligible for Rent a Room relief if you are renting the room to a son or daughter. Find out more in our document about Rent a Room Relief.

Tax when transferring the ownership of your home

When ownership of a property is transferred, the financial gains are usually liable to tax but some exemptions and reliefs apply.

For instance, when you sell a property, any profit you make over the amount that you paid for it would usually be liable for Capital Gains Tax. There is however an exemption if the property is the main residence where you live. See Revenue leaflet CGT2 (pdf) for an introduction to Capital Gains Tax or see the more detailed Guide to Capital Gains Tax (pdf).

If you receive property as a gift or inheritance, you may have to pay Capital Acquisitions Tax. There are a number of reliefs and exemptions that apply including transfers between spouses or the receipt of a house that has been your main residence.

Stamp duty

Stamp duty is a tax that may be payable when ownership of a property is transferred.

From 2011, there will be a rate of 1% for residential property valued up to €1 million and 2% on the balance.

Stamp duty on property is a complex area. Further information on stamp duty on property is available.

Service charges

Tax relief is available if you pay service charges for refuse collection, sewage disposal or domestic water supplies. More information can be found on tax relief on domestic service charges.