I propose to take Questions Nos. 61 and 77 together.
Section 836 of the Taxes Consolidation Act provides for a tax deduction under section 114 of the Taxes Consolidation Act 1997 in respect of the cost of maintaining a second residence where, arising out of the performance of his or her duties, a Minister or a Minister of State is obliged to maintain that second residence in addition to his or her main residence
The allowance can be claimed for the annual mortgage/home loan interest actually paid on any loan taken out to purchase the second residence. In addition, Ministers are entitled to an allowance for the actual vouched costs expended in maintaining the second residence. The allowance is confined to office holders who represent constituencies outside the Dublin area and is known as the dual abode allowance.
The residence in respect of which the dual abode allowance can be claimed is the office holder's second residence. The dual abode allowance cannot be claimed in respect of the office holder's main residence.
I am informed by the Revenue Commissioners that the cost to the Exchequer of the dual abode allowance for the tax years 2008 and 2009 is €74,770 and €74,996 respectively. The figures for 2010 are not yet available as Returns of Income for 2010 are in the process of being submitted and processed.
It is a longstanding practice of the Minister for Finance not to comment in advance of the Budget on any tax matters that might be the subject of Budget decisions.