Billy Timmins
Question:82. Deputy Billy Timmins asked the Minister for Finance his views on correspondence (details supplied) regarding cuts and taxes; and if he will make a statement on the matter. [3476/13]
View answerWednesday, 23 January 2013
Questions (82)
Written answers
The Government is committed to helping homeowners in distress to weather the recession, and to ensuring that Ireland has a sustainable housing policy. A range of measures are being advanced in this area including personal insolvency reform, the implementation of the “mortgage to rent” initiative, engagement with mortgage lenders on the development and implementation by them of mortgage arrears resolution strategies and the provision of a mortgage advisory function.
The inter-Departmental Group chaired by Dr Don Thornhill on the design of a property tax (the “Thornhill Group”) had due regard to issues such as ability to pay. It recommended a system of deferrals for low-income households, and those facing high mortgage payments, and this was accepted by the Government.
Part 12 of the Finance (Local Property Tax) Act provides for deferral of payment of Local Property Tax (LPT) in specified circumstances. Where the residential property is the sole or main residence of a liable person and their estimated gross income from all sources does not exceed €15,000 for a single person or €25,000 for a couple during the year covered by the return, they will be eligible to apply for full deferral of the LPT charge.
In addition, for income stressed owner-occupiers who have an outstanding mortgage, an adjusted gross income limit will apply. In these cases, the income thresholds of €15,000 or €25,000 may be increased by 80% of the annual mortgage interest payments. This type of deferral is available until the end of 2017.
Moreover, owner-occupiers may be eligible to apply for partial deferral where the gross income from all sources is less than €25,000 in the case of a single person and €35,000 in the case of a couple. For income stressed owner-occupiers who have an outstanding mortgage, these thresholds may also be increased by 80% of the annual mortgage interest payments. In these cases the owner-occupier will qualify for deferrals of 50% of the LPT liability and the balance of 50% of the tax must be paid.