Gay Mitchell
Question:106 Mr. G. Mitchell asked the Minister for Finance if he will introduce relief measures to enable taxi drivers to write off the cost of their taxi plates. [27232/01]
Written Answers. - Tax Reliefs.
As part of the Government's policy in introducing the new regime for taxi licences, section 51 of the Finance Act, 2001, provided for a new scheme of capital allowances for expenditure incurred on the cost of taxi licences acquired on or before 21 November 2000. The allowances are effectively backdated with the cost being deemed to have been incurred on 21 November 1997 where the licence was purchased prior to that date. It is understood that from the details supplied by the Deputy that he is referring to a case involving a person who has five taxi licences. This case was the subject of a previous Parliamentary Question put down by the Deputy on 22 May last – PQ No. 14663/01.
The situation as set out in my reply to that question still stands. In brief, the person may claim capital allowances in respect of one of the five licences only but if he wishes to transfer his own existing taxi trade from the least expensive licence to a more expensive one in order to maximise the relief available he may do so. However, where this happens the capital allowances for the years leading up to the transfer are deemed to have been made already in previous years so that only the balance of the allowances for the subsequent years would then be available in respect of the more expensive licence. As I indicated previously, the individual in question may clarify his position by contacting the direct taxes administration division of the Revenue Commissioners in Dublin Castle at telephone number 6748017.
Gay Mitchell
Question:107 Mr. G. Mitchell asked the Minister for Finance if a person resides in his principal home and rents out more than one room, if he is entitled to the £6,000 tax free threshold as announced in last year's budget; and if he will make a statement on the matter. [27233/01]
The rent-a-room relief scheme, introduced in Finance Act, 2001, provides that where a person rents out a room or rooms in his or her principal private residence, no tax is payable on the rent received where the amount received is less than a specified amount. The specified limit is £6,000 (7,620) for a full tax year and £4,440 (5,638) for the short tax year, 2001. In order to qualify for the relief, it is necessary that the residential premises be situated in the State and occupied by the individual as his or her principal private residence during the tax year.