Dáil Éireann Debate, Tuesday - 3 March 2015
212. Deputy Michael McGrath asked the Minister for Finance the approximate cost of allowing persons whose personal circumstances require them to rent out their principal private residence and rent another home for themselves, to offset the cost of the rent they are paying against the rental income they receive, for income tax purposes; and if he will make a statement on the matter. [9113/15]
View answer213. Deputy Michael McGrath asked the Minister for Finance the amount of income tax paid by landlords in 2013 and 2014 in respect of rental income; and if he will make a statement on the matter. [9114/15]
View answerI propose to take Questions Nos. 212 and 213 together.
I am informed by the Revenue Commissioners that the amount of gross domestic rental income declared on Income Tax returns for 2012 was €4.0bn. Deductions and reliefs in respect of losses, expenses and capital allowances are allowable from gross rental income and the taxable rental income for 2012 was in the order of €1.2bn.
Returns for tax years 2013 or 2014 are not yet available. The Income Tax returns to Revenue do not distinguish between residential and commercial properties, these figures therefore include rental income from both. As rental income is aggregated with all other incomes for the purposes of the Income Tax assessment calculation, it is not possible to specify the yield from rental income alone.
In relation to the first Question, Revenue records do not directly or separately identify those renting out their principal private residences or those renting out another property for themselves. In addition, it would be necessary to have a clearer picture of how such a scheme might operate so as to confine the benefit to a specified group. I am advised therefore that Revenue is not in a position to estimate the cost of this proposal.
