Written Answers Nos. 61-67
61. Deputy Michael McGrath asked the Minister for Finance the cost of exempting the first €100 of interest on deposits from Deposit Interest Retention Tax; and if he will make a statement on the matter. [2472/16]
View answerI am informed by the Revenue Commissioners that DIRT on interest bearing deposits is declared and paid on a four-times yearly basis by financial institutions. The total value of DIRT due and paid is reported to Revenue at institutional level. Detailed figures are not required in these returns to identify the numbers of accounts on which DIRT was paid or the amount of interest earned or DIRT payment per account.
Therefore, I am advised by the Revenue Commissioners that the data are not available on Revenue records to provide a basis for compiling estimates of the cost of exempting the first €100 of interest from DIRT.
62. Deputy Michael McGrath asked the Minister for Finance to set down the first-year cost of reducing the capital gains tax rate by 1% and by 8%; and if he will make a statement on the matter. [2473/16]
View answer63. Deputy Michael McGrath asked the Minister for Finance further to Parliamentary Question No. 158 of 15 December 2015, the combined cost of increasing the overall limit from €1 million in chargeable gains for qualifying for capital gains tax entrepreneur relief to €15 million while reducing the rate applied to gains under capital gains tax entrepreneur relief to 10% and reducing the overall capital gains tax rate from 33% to 25%; and if he will make a statement on the matter. [2474/16]
View answerI propose to take Questions Nos. 62 and 63 together.
In relation to the first question, I am advised by the Revenue Commissioners that a wide range of statistical information is available on the Commissioners' Statistics webpage:
http://www.revenue.ie/en/about/statistics/index.html.
In relation to the Deputy's specific question, potential costs from reducing the rate of Capital Gains Tax (CGT) can be found in the post-Budget 2016 Ready Reckoner:
http://www.revenue.ie/en/about/statistics/ready-reckoner.pdf.
While the Ready Reckoner does not show all of the specific costings requested by the Deputy, changes can be estimated broadly on a pro-rata basis with those displayed in the Reckoner.
In relation to the second question, I am further informed by the Revenue Commissioners that the estimated full year combined cost of (i) increasing the overall limit from €1 million in chargeable gains for qualifying for CGT entrepreneur relief to €15 million while (ii) reducing the rate applied to gains under the CGT entrepreneur relief to 10 per cent and (iii) reducing the overall CGT rate from 33% to 25%, is in the region of €220 million. The cost includes the effect on corporate gains which are taxed at the CGT rate but are normally collected as Corporation Tax. It should be noted that this estimate assumes no behavioural changes on the part of taxpayers.
64. Deputy Michael McGrath asked the Minister for Finance to set down the number of persons or mortgage accounts in receipt of tax relief at source in each year from 2011 to 2015 in tabular form; the projected cost in 2016; and if he will make a statement on the matter. [2475/16]
View answer65. Deputy Michael McGrath asked the Minister for Finance further to Parliamentary Question No. 159 of 16 July 2015 to set down the cost of increasing the rate of tax relief at source that applies in 2016 from 30% to 40% and 50% for those who took out a qualifying loan between 2004 and 2008; and if he will make a statement on the matter. [2476/16]
View answer66. Deputy Michael McGrath asked the Minister for Finance further to Parliamentary Question No. 160 of 16 July 2015, to set down the cost of increasing the ceiling in 2016 of €3,000 interest for tax relief at source for those who took out a qualifying loan between 2004 and 2008 to €4,000 and €5,000; and if he will make a statement on the matter. [2477/16]
View answer67. Deputy Michael McGrath asked the Minister for Finance to set down the cost of retaining tax relief at source for mortgage customers in 2018 and 2019. [2478/16]
View answerI propose to take Questions Nos. 64 to 67, inclusive, together.
I am informed by Revenue that the number of mortgage accounts in receipt of tax relief at source in respect of mortgage interest in each year from 2010 to 2015, is as set out in the following table.
|
Year |
Number of Mortgage Accounts |
|
2010 |
349,500 |
|
2011 |
352,800 |
|
2012 |
355,400 |
|
2013 |
351,200 |
|
2014 |
331,200 |
|
2015 |
310,400 |
The cost of increasing the rate of tax relief at source that applies in 2016 to 40% and 50% for those that took out a qualifying loan between 2004 and 2008 is tentatively estimated at €41 m and €83 m per annum respectively.
The cost of increasing the interest ceiling of €3,000 in 2016 for tax relief at source, for those that took out a qualifying loan between 2004 and 2008, to €4,000 and €5,000 is tentatively estimated at €18 m and €32 m respectively.
The total cost of tax relief at source for mortgage interest was €232 million in 2015. Any estimates for 2016 and later years must be very tentative because they depend on the extent of mortgage redemption, interest arrears and interest rates among other factors. Assuming that the actual reduction from 2014 to 2015 continues at the same rate, the following table indicates a possible cost. Although mortgage interest relief is due to end in 2017, the table has been extended to 2018 and 2019 to provide estimates for the Deputy's question in this regard.
|
Year |
Tentative projection of TRS Cost |
|
2015 |
€232m |
|
2016 projection |
€208m |
|
2017 projection |
€186m |
|
2018 projection |
€166m |
|
2019 projection |
€148m |
