Written Answers Nos. 75-83
75. Deputy Michael McGrath asked the Minister for Finance in respect of capital gains tax entrepreneurs’ relief, to indicate the cost of simplifying the relief to provide a 10% capital gains tax rate on entrepreneurial gains up to €10 million; and if he will make a statement on the matter. [33837/15]
View answerThere are gaps in the data available to the Revenue Commissioners which prevent a definitive costing being provided for this proposal. Tax returns data available to the Commissioners do not in all cases clearly distinguish between disposals of business assets and non-business assets. Furthermore, it is not clear from the question what would be considered "entrepreneurial" gains and the Revenue Commissioners have no reliable data to make distinctions between gains on that basis. Subject to these caveats it is very tentatively estimated that the cost of introducing a €10 m cap and 10% CGT rate for individuals could cost in excess of €130 million in a full year. This assumes that the reduced rate would apply in respect of all quoted and unquoted shares, commercial property disposals by proprietary directors and self-employed individuals and also agricultural land disposals by farmers. This estimate assumes no behavioural impact.
76. Deputy Michael McGrath asked the Minister for Finance to set out the position on income earners aged over 70 years or with full medical cards with income under €60,000 per year and who pay a maximum universal social charge rate of 3.5%; whether this is due to expire under current legislation; and if he will make a statement on the matter. [33841/15]
View answerAs the Deputy will be aware, individuals aged over 70 whose income does not exceed €60,000 are liable to a maximum rate of USC of 3.5%. The legislation underpinning this feature of the tax system has no expiry date.
Individuals who hold full medical cards and whose income does not exceed €60,000, are also only liable to a maximum rate of USC of 3.5%. When the USC was introduced by the previous Government, the preferential rate for medical card holders aged under 70 with unlimited income was due to expire at the end of 2014. I introduced an income cap of €60,000 in Budget 2013 to ensure that this measure was focused on low and middle income earners. In Budget 2015, I extended the preferential rate for these individuals, so that it would be available up to the end 2017. A further review of this measure will be completed in advance of Budget 2018.
77. Deputy Michael McGrath asked the Minister for Finance to confirm how many employees of the National Asset Management Agency have expressed an interest in availing of its voluntary redundancy programme to date; whether the agency expects to achieve its target of reducing its workforce from 342 to 291 by the end of 2015; and if he will make a statement on the matter. [33843/15]
View answerI am advised by NAMA that the Agency received 80 applications for the programme. Of these, I am advised that 3 members of staff reconsidered, leaving 77 expressions of interest. I am further advised that NAMA accepted 51 of these applications, in keeping with reducing staff numbers to 291 by the end of 2015.
78. Deputy Michael McGrath asked the Minister for Finance to set out the approximate cost of providing assistance to persons over the age of 70 who wish to trade down to a smaller house by exempting them from stamp duty on the purchase of a new home; and if he will make a statement on the matter. [33852/15]
View answer79. Deputy Michael McGrath asked the Minister for Finance to outline the approximate cost of providing assistance to persons over the age of 70 who wish to trade down to a smaller house of exempting them from the local property tax on their new home for a period of five years; and if he will make a statement on the matter. [33853/15]
View answerI propose to take Questions Nos. 78 and 79 together.
I am informed by the Revenue Commissioners that the information returned to them provides no basis for estimating the potential uptake of the scheme proposed by the Deputy. However, for illustrative purposes, Revenue have examined Stamp Duty returns and LPT data for 2014 to identify individuals older than 70 years of age who sold a residential property in 2014 and bought one with a lesser consideration in the same year. The numbers affected are small, and exempting these cases from Stamp Duty and LPT would have cost the Exchequer approximately €0.25 million and €0.1 million respectively based on 2014 returns.
These estimates do not take account of any potential change in behaviour which could occur if such exemptions were to be introduced. Nor have the Revenue Commissioners considered the administrative issues that may need to be addressed to implement such a proposal.
80. Deputy Michael McGrath asked the Minister for Finance to outline the cost of providing 100% mortgage interest relief for landlords who agree to sign up to long-term family tenure leases of at least four years duration; and if he will make a statement on the matter. [33855/15]
View answer81. Deputy Michael McGrath asked the Minister for Finance to outline the cost of providing 100% mortgage interest relief for landlords who agree not to increase rent for a period of three years; and if he will make a statement on the matter. [33857/15]
View answer82. Deputy Michael McGrath asked the Minister for Finance to outline the cost of providing 100% mortgage interest relief for landlords who agree to provide accommodation to tenants under the rental accommodation scheme and the housing assistance payment scheme; and if he will make a statement on the matter. [33858/15]
View answerI propose to take Questions Nos. 80 to 82, inclusive, together.
It is not possible to cost the reliefs proposed in the Deputy's questions. The Revenue Commissioners do not require rental income data to be returned in a manner which would enable commercial and private rental accommodation income to be separately identified. Similarly, income from the categories of tenant in the Deputy's proposals and the current level of mortgage interest deduction specific to such lettings is not separately identified.
In this context, it should be noted that an increase in interest deductibility would only be of benefit to those landlords that have borrowings outstanding in respect of the purchase or improvement of the relevant property. This limits the potential of any measure to incentivise landlords to commit to rent certainty. In addition, rent certainty would not of itself solve the supply-side issues that are driving rent increases. I note that the ESRI in their Quarterly Economic Commentary, published yesterday, urged that in light of difficult past experience, extreme caution should be taken when any use of the tax system as a means of stimulating activity in the residential property market is being considered.
Significant administrative issues would also need to be addressed in the implementation of such a measure. It should also be noted that any increase in the deduction allowed for interest could not be confined to areas experiencing specific accommodation shortfalls, such as the major urban centres, and this would significantly increase the deadweight cost of the measure. Furthermore it is likely that the increased deductibility would have to be applied in respect of taxable rental income sourced throughout the EU/EEA, where similar conditions are met.
With regard to the calculation of rental profits under current legislation, I would point out that there are also a number of other allowances and deductions available to reduce the tax on rental income paid. These include, for example, the cost to the landlord of any goods provided or services rendered to a tenant and the cost of maintenance, repairs, insurance and management of the property.
In addition, wear and tear allowances are available in respect of expenditure incurred on fixtures and fittings provided by a landlord for the purposes of furnishing rented residential accommodation. These allowances are granted at the rate of 12.5% per annum of the actual cost of the fixtures and fittings over a period of 8 years.
The Deputy may wish to note that the 2013 Report of the Comptroller and Auditor General contained, in Chapter 16, a detailed review of the taxation of rental income and expenses deductible therefrom. This report is available on the website of the Comptroller and Auditor General: http://audgen.gov.ie/documents/annualreports/2013/report/en/Chap16.pdf.
83. Deputy Ruth Coppinger asked the Minister for Public Expenditure and Reform if he will report on the repair work completed during the recent filming on Sceilig Mhicíl in County Kerry. [33824/15]
View answerThe Office of Public Works (OPW) maintains access for visitors to Skellig Michael for about 4.5 months of the year, from mid May to the end of September. During this time, it would be expected that approx 11,500 / 12,500 visitors would land on the Island when weather permits.
From time to time, in the normal course of events, steps leading to the Monastery at Skellig Michael may become slightly loosened through the actions of nesting birds or by the passage of human feet. These incidents are a regular occurrence throughout the summer and, because of their particular implications for safety, are closely monitored by the OPW guides and maintenance staff who remain onsite during the season. As occurrences are observed therefore, they are dealt with as soon as the area is clear of visitors. This does not involve introduction of new material but rather concerns the tightening up of steps which may have loosened by re-using the dislodged fabric. Work of this nature was carried out in the week ending Friday 19th September.
A second repair was also necessary recently at an entry point through a wall near to the Monastery. An incident had occurred at this location in approx mid June when stones in the drystone entrance jamb at the entrance point were accidentally dislodged by visitors. At the time, a repair was effected by the onsite OPW staff and the damage was rectified. The same material was again inadvertently dislodged by a visitor passing through the entrance on 17 September. The entrance was immediately protected and access curtailed while a repair was carried out by OPW stonemason staff onsite. The work took a short time to complete and normal access through the entrance was restored immediately thereafter.
