Tuesday, 2 July 2013

Questions (238)

Martin Heydon

Question:

238. Deputy Martin Heydon asked the Minister for Finance if the local property tax is deductible as an expense against rental income; the plans and progress that have been made in this regard; and if he will make a statement on the matter. [31816/13]

View answer

Written answers (Question to Finance)

The inter-departmental group, chaired by Dr Don Thornhill, which considered 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. The Group recognised the considerable pressures on the public finances and the need to bridge the gap between expenditure and revenue, and therefore 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. The Government accepted the recommendation of the Thornhill Group on this matter but has not considered the manner or the timing in which this will happen.

Questions Nos. 239 and 240 answered with Question No. 98.
Question No. 241 answered with Question No. 172.