Dáil Éireann Debate, Thursday - 9 May 2013
70. Deputy Pearse Doherty asked the Minister for Finance if he will confirm that landlords can write the local property tax off against rent for tax purposes; and the estimated cost of this to the Exchequer. [22002/13]
View answerThe Inter-departmental group set up to consider the design of a property tax chaired by Dr Don Thornhill, (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 was a matter 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. It is not possible at this stage to estimate the potential cost to the Exchequer.
