Tuesday, 12 March 2013

Questions (155)

Noel Grealish

Question:

155. Deputy Noel Grealish asked the Minister for Finance when he expects local property tax to be deductible from rental income; and if he will make a statement on the matter. [12341/13]

View answer

Written answers (Question to Finance)

The Inter-departmental group chaired by Dr. Don Thornhill to consider the design of a property tax (the “Thornhill Group”) recommended that the Local Property Tax (LPT) paid in respect of a rented property should be deductible for income tax or corporation tax purposes, in a similar manner to commercial rates. However, the Group recognised the considerable pressures on the public finances and the need to bridge the gap between expenditure and revenue. For this reason, the Group suggested that consideration be given to phasing in deductibility over a period of years. The Group also considered that it is for Government, having regard to the prevailing budgetary situation, to decide on the time span for phasing-in deductibility and on what percentage of LPT to allow as a deduction from gross rents for tax purposes. There is no provision in the current legislation for such deductions. While it is the intention of the Government to introduce such a provision on a phased basis, neither the manner in which this will happen or the timing have yet been decided.