Dáil Éireann debate -
Tuesday, 21 Nov 2000

Vol. 526 No. 3

Written Answers. - Tax Reliefs.

Eamon Gilmore

Question:

232 Mr. Gilmore asked the Minister for Finance the cost of increasing all categories of rent relief to the same level as mortgage interest relief in the forthcoming budget; and if he will make a statement on the matter. [26774/00]

Eamon Gilmore

Question:

233 Mr. Gilmore asked the Minister for Finance the cost of increasing all categories of rent relief, save for the exemptions for those over 55 years, to £1,500 in the forthcoming budget; and if he will make a statement on the matter. [26775/00]

Eamon Gilmore

Question:

234 Mr. Gilmore asked the Minister for Finance the cost of increasing all categories of rent relief, save for the exemptions for those over 55 years, to £2,000 in the forthcoming budget; and if he will make a statement on the matter. [26776/00]

Eamon Gilmore

Question:

235 Mr. Gilmore asked the Minister for Finance the cost of increasing all categories of rent relief, save for exemptions for those over 55 years, to £3,000 in the forthcoming budget; and if he will make a statement on the matter. [26777/00]

Minister for Finance (Mr. McCreevy)

I propose to take Questions Nos. 232 to 235, inclusive, together.

I am informed by the Revenue Commissioners that the information requested, estimated by reference to a full income tax year based on the expected number of claimants in 2001, is as follows.

Cost to Exchequer of proposed increases in relief for rent paid for private rented accommodation.

Proposed maximum rent relief allowable	Tenants aged under 55 years	Tenants aged 55 years and over	Total
	£million	£million	£ million
Equal to the limit of mortgage interest relief (MIR) allowable for non-first time buyers (£2,000 single, £4,000 married and widowed).	29.9	0.2	30.1
Equal to the limit of MIR allowable for first time buyers (£2,500 single, £5,000 married and widowed).	41.9	0.6	42.5
£3,000 single, £4,500 widowed and £6,000 married	53.8	0.8	54.6
£2,000 single, £3,000 widowed and £4,000 married	29.9	0.0	29.9
£1,500 single, £2,250 widowed and £3,000 married	17.9	0.0	17.9

The amount of MIR for non-first time buyers is £2,000 for single persons and £4,000 for married-widowed persons. MIR for first time buyers is £2,500 and £5,000, respectively. It is assumed that in increasing rent relief to the level of MIR the amount of rent relief for widowed persons would be increased to that of MIR for married couples, contributing to costs of £0.2 million and £0.6 million respectively for those aged 55 years and over.

It is assumed that the increases in rent relief mentioned in the questions apply to rent relief allowable to single persons withpro rata increases intended for married and widowed tenants. Rent relief for widowed persons is currently set at 150% of the amount of rent relief for single persons in the relevant age category, while rent relief for married couples is double that for single persons. A cost figure for tenants aged 55 years and over is also included for the proposed increase to £3,000 because it would set the relief at a higher level than is currently available to this group. In the case of increases to £2,000 and £1,500, no one category of claimant under 55 years, single, widowed or married would have a higher amount of relief than their equivalent in the 55 years and over group.

These figures are provisional and subject to revision.