Vol. 456 No. 1
101 Mr. S. Brennan asked the Minister for Finance his views on a tax allowance (details supplied); his further views on whether the allowance is reasonable; the proposals, if any, there are to either change the allowance or to adjust it in line with the income of the individuals concerned; and if he will make a statement on the matter. [13325/95]
I am informed by the Revenue Commissioners that the practice of granting a wear and tear allowance in computing rental income assessable under Case V of Schedule D is a concessional one. In the case of expenditure incurred on the purchase of furnishings, fixtures and fittings on or after 6 April, 1992, the following rates of wear and tear are granted: 15 per cent of the cost of the item on a straight line basis (years 1 to 6) and 10 per cent of the cost in year 7. Expenditure incurred on the purchase of furnishings, fixtures and fittings prior to 6 April 1992, is written-off as follows: 10 per cent of the cost of the item on a reducing balance basis each year.
This practice has now been in operation for several years and claims for wear and tear are submitted on this basis for the majority of rental income cases. In exceptional cases where the taxpayer has not made a claim on the above basis or where she-he has not given details of the expenditure incurred a deduction of one twelfth of the gross rental income (subject to a maximum of £200) is concessionally given to cover wear and tear. There are no proposals to change this figure as the taxpayer already has the option, as outlined above, of claiming wear and tear allowances based on his-her expenditure.
