Dáil Éireann debate -
Wednesday, 8 Oct 1997

Vol. 481 No. 2

Written Answers. - Private Rented Accommodation.

Donal Carey

Question:

19 Mr. D. Carey asked the Minister for Finance if he will review the tax provisions which apply to the private rented accommodation sector in view of the fact that there has been an accelerating decline in the amount of private rented accommodation; and if he will make a statement on the matter. [15685/97]

Minister for Finance (Mr. McCreevy)

I presume the Deputy is referring to the providers of rented accommodation. During the last 12 months an interdepartmental review of the private rented sector was carried out. In response to this review the 1997 budget and Finance Act contained measures to help the providers of private rented accommodation. The standard provision of capital allowances in regard to wear and tear on fixtures and fittings in private rented accommodation were put on a statutory basis.

Section 22 of the 1997 Finance Act provides for a capital allowance of 15 per cent of actual expenditure for years one to six and 10 per cent in year seven to be set off against rental income. Furthermore, the rule regarding the deductibility of accounting and other administrative costs against rental income were clarified in the February edition ofTax Briefing, which is a Revenue Commissioners publication. It should also be pointed out that there has been a considerable amount of new rented residential property coming on the market in recent years in various urban centres as a result of the urban renewal incentives for such property.