Tax Relief on Water Charges. Budget 2015
An income tax relief will apply to Water Charges from Jan 2015. This will mean that people paying income tax will be able to reduce their tax bill by 20% of their water charges . (Max relief of €100 a year). Based on the often quoted average water charge of €238 – that tax relief would be worth just €48 a year on average to income tax payers. Obviously – bigger users of water with bigger bills will be able to claim more. To get the maximum €100 tax relief – your water bill would need to be €500 a year or more. (Easily possible – see some estimated metered charges here.
The Government estimate this tax relief will cost them €40 Million a Year.
Will people playing for water on a Group Water Scheme be able to claim this allowance?
It doesn’t look like it (at the moment)
So some pensioners, who pay income tax, will be able to claim 20% of their water charges and get €100 per year paid by Dept of Social Protection. Presumably the water charge will be net of the €100 payment before the tax credit is calculated!
No – there will be no link between revenue and the €100 extra on the Household Benefits package.