Jackie Cahill
Question:216. Deputy Jackie Cahill asked the Minister for Finance if he will address a matter regarding stamp duty in the case of a person (details supplied); and if he will make a statement on the matter. [55237/17]
View answerStamp Duty
Questions (216)
Written answers
On 10 October 2017, in Budget 2018, the Deputy will be aware that I increased the rate of Stamp Duty on transfers of non-residential property from 2% to 6%. The Finance Act 2017 provides that, in general, the increased rate of duty applies in respect of all instruments relating to the transfer of non-residential property executed on or after 11 October 2017.
The old rate of 2% continues to apply in respect of instruments executed before 1 January 2018, but only where a binding contract for the transfer of the property concerned was entered into before 11 October 2017. I am advised by Revenue that from the information supplied by the Deputy that this condition is not met in the case of the person concerned. This means that the transfer in question is subject to the 6% rate of duty. The Deputy may wish to note that a company is a separate legal entity to the individual who holds shares in the company.
Housing Loans
Questions (217)
Thomas P. Broughan
Question:217. Deputy Thomas P. Broughan asked the Minister for Finance the examinations his Department is undertaking into recent reports that developers are no longer accepting the "subject to loan approval" clause which protects the deposits of home buyers; the extent of this practice; and if he will make a statement on the matter. [55245/17]
View answerWritten answers
Developers are not regulated financial service providers and their actions are not a matter for the Department of Finance so my Department is not undertaking any examinations into reports that developers are no longer accepting "subject to loan approval" clauses in contracts for house sales. I am aware that the Deputy has put a similar question to the Minister for Housing, Planning and Local Government.
That said, I am aware that the Law Society of Ireland's conveyancing committee recently reviewed its recommendation that “solicitors acting for purchasers where a loan is required in order to complete the purchase transaction insert a special condition (or amend their usual form of special condition regarding loan approval) to provide that the contract and the completion thereof is subject to the purchaser’s loan approval being in place at the date of completion in a sum sufficient to allow the purchaser complete the contract.”
In June 2017, the committee concluded that "it would be unsafe for purchasers if it changed its recommendation. The dangers of proceeding without a loan clause in a contract are too serious for the majority of purchasers relying on loan finance to complete the purchase."
While the purchase of homes by buyers from developers is not within my remit as Minister for Finance, I would strongly advise home buyers to be cognisant of this conclusion in negotiating the contract for purchase.
Mortgage Interest Relief Eligibility
Questions (218)
Michael McGrath
Question:218. Deputy Michael McGrath asked the Minister for Finance if a person (details supplied) in County Cork qualifies for mortgage interest relief on the mortgage of their family home in view of the circumstances that apply. [55249/17]
View answerWritten answers
I am advised by Revenue that Section 244 of the Taxes Consolidation Act 1997 provides for mortgage interest relief in respect of qualifying interest paid in a tax year.
In order to qualify for the relief, a loan must be exclusively used to purchase, repair, develop or improve the principal private residence of the claimant.
In the case to which the Deputy refers, while the loan was secured on the family home, it was not used for qualifying purposes in accordance with the Act and therefore does not qualify for mortgage interest relief.
Disabled Drivers and Passengers Scheme
Questions (219)
Fergus O'Dowd
Question:219. Deputy Fergus O'Dowd asked the Minister for Finance if there are planned changes to the criteria for the primary medical certificate to allow children and adults with significant intellectual disabilities to obtain the certificate; and if he will make a statement on the matter. [55259/17]
View answerWritten answers
The Disabled Drivers and Disabled Passengers (Tax Concessions) Scheme provides relief from VAT and VRT on the purchase of an adapted car for transport of a person with specific severe and permanent physical disabilities, payment of a fuel grant, and an exemption from Motor Tax.
To qualify for the Scheme an applicant must be in possession of a Primary Medical Certificate. To qualify for a Primary Medical Certificate, an applicant must be permanently and severely disabled within the terms of the Disabled Drivers and Disabled Passengers (Tax Concessions) Regulations 1994 and satisfy one of the following conditions:
- be wholly or almost wholly without the use of both legs;
- be wholly without the use of one leg and almost wholly without the use of the other leg such that the applicant is severely restricted as to movement of the lower limbs;
- be without both hands or without both arms;
- be without one or both legs;
- be wholly or almost wholly without the use of both hands or arms and wholly or almost wholly without the use of one leg;
- have the medical condition of dwarfism and have serious difficulties of movement of the lower limbs.
I recognise the important role that the Scheme plays in expanding the mobility of citizens with disabilities. From time to time representations are received from individuals who feel they would benefit from the Scheme but do not qualify under the six criteria. While I have sympathy for these cases, given the scale and scope of the Scheme, I have no plans to expand the medical criteria beyond the six currently provided for in the Disabled Drivers and Disabled Passengers (Tax Concessions) Regulations 1994.
VAT Yield
Questions (220)
Róisín Shortall
Question:220. Deputy Róisín Shortall asked the Minister for Finance the anticipated increase in value added tax, VAT, revenue in 2018 arising from the increase in the public service obligation levy for electricity; the amount collected in VAT from this source in each of the past five years; and the amount estimated for 2018. [1031/18]
View answerWritten answers
I am advised by Revenue that the information furnished on a VAT return does not require the yield from particular trades or activities to be separately identified; with the result that the amount of VAT collected from the Public Service Obligation (PSO) levy cannot be identified from Revenue data.
An estimate of the VAT collected on the PSO levy based on figures published by the Commission for Energy Regulation is provided in the following table. Much of the VAT collected would be repaid or claimed as input credit by VAT-registered electricity customers. The net VAT revenue arising from the increase in the public service obligation levy for electricity cannot be accurately determined.
The level of PSO levy for the period October 2018 to September 2019 is not yet available. For the purpose of estimation an assumption of no change has been made.
|
Public Service Obligation Year (1 October to 30 September) |
Public Service Obligation Levy (€ millions) |
Estimate of VAT Collected (€ millions) |
Tax Year (1 January - 31 December) |
Estimate of VAT Collected adjusted for the Tax Year |
|
2012/2013 |
131 |
17.68 |
2013 |
20.38 |
|
2013/2014 |
211 |
28.48 |
2014 |
32.66 |
|
2014/2015 |
335 |
45.22 |
2015 |
44.88 |
|
2015/2016 |
325 |
43.87 |
2016 |
46.13 |
|
2016/2017 |
392 |
52.92 |
2017 |
55.62 |
|
2017/2018 |
472 |
63.72 |
2018* |
63.72* |
*2018 estimate assumes no change in the value of the levy for the period 2018/2019.
Disabled Drivers and Passengers Scheme
Questions (221)
Michael McGrath
Question:221. Deputy Michael McGrath asked the Minister for Finance the position in regard to persons acquiring a vehicle by means of a personal contract plan being entitled to avail of the disabled drivers and disabled passengers scheme provided the person and the vehicle meet the relevant criteria; and if he will make a statement on the matter. [1038/18]
View answerWritten answers
The qualifying provisions for the Disabled Drivers and Passengers Scheme are contained in Statutory Instrument No. 353 of 1994 - Disabled Drivers and Disabled Passengers (Tax Concessions) Regulations 1994. Regulations 8 (disabled drivers), 10 (disabled passengers) and 12 (organisations) provide that a vehicle must be “purchased” by the person or organization. The Regulations further clarify that "purchased" does not include any form of lease arrangement.
I understand that Revenue is currently reviewing cases where applications under the Scheme were refused on the grounds of PCP financing to establish if they qualify.
Commemorative Coins
Questions (222)
Pearse Doherty
Question:222. Deputy Pearse Doherty asked the Minister for Finance if it is only the Central Bank that produces coins officially recognised by the State to mark historic events; if his or the Central Bank's attention has been drawn to private companies implying that they are selling officially sanctioned commemorative coins; and if he will make a statement on the matter. [1087/18]
View answerWritten answers
The Central Bank of Ireland acts as agent for the Minister for Finance in issuing all legal Irish coin, both circulating coins and commemorative coins. The Central Bank is the sole body with the statutory authority to issue coin as legal tender in Ireland. The Central Bank is aware that there are private companies within the market that offer coin-like objects and medals for sale and has expressed its concern to some of these companies about how they represent some of their products. I am informed by the Central Bank that it intends to contact both the Advertising Standards Authority for Ireland and the Competition and Consumer Protection Commission in relation to the concerns it holds.
State Investments
Questions (223)
Clare Daly
Question:223. Deputy Clare Daly asked the Minister for Finance the value of American treasury bonds held by the State in 2017. [1201/18]
View answerWritten answers
I am informed by the National Treasury Management Agency (NTMA) that the Exchequer held no American treasury bonds during 2017.
However, I am informed by the Ireland Strategic Investment Fund (ISIF) that as of 31 December 2017, the ISIF held, in its Global Portfolio (which comprises a globally diversified portfolio of investments) American treasury bonds and bills with a value of €11.1m.
Mortgage to Rent Scheme Administration
Questions (224)
Seán Fleming
Question:224. Deputy Sean Fleming asked the Minister for Finance his Department's role in giving overall financial sanction in respect of the proposed new mortgage-to-rent scheme (details supplied); and if he will make a statement on the matter. [1248/18]
View answerWritten answers
My Department has no role in sanctioning expenditure in respect of the proposed new Mortgage to Rent Scheme.
The Mortgage to Rent Scheme is managed by the Department of Housing, Planning and Local Government.
EU Budget Contribution
Questions (225)
Thomas P. Broughan
Question:225. Deputy Thomas P. Broughan asked the Minister for Finance his views on the recent proposal by EU Commissioner Phil Hogan to increase the EU budgetary contributions to 1.1% or 1.2%; and if he will make a statement on the matter. [1254/18]
View answerWritten answers
The current Multiannual Financial Framework (MFF) (2014-2020) provides a medium-term framework for financial programming and budgetary discipline by ensuring that EU spending is predictable and stays within agreed limits. The annual EU budget negotiations take place within the framework of the medium-term ceilings as established under the MFF.
As the current MFF is coming to the end of its lifespan, the European Commission is due to publish its formal proposal on the next MFF in May 2018.
While my Department has undertaken some initial preparations on the future MFF, it would not be prudent to comment on any individual elements without seeing the broader package within which they fit. My Department will continue to work closely with other Departments and will examine the proposal in detail upon its release.
State Debt
Questions (226)
Thomas P. Broughan
Question:226. Deputy Thomas P. Broughan asked the Minister for Finance the steps already taken by the National Treasury Management Agency to refinance State debt in 2018; the agency's future plans in this regard; and if he will make a statement on the matter. [1255/18]
View answerWritten answers
As the Deputy may be aware, several steps have already been taken to lower this year’s refinancing requirement.
Through a combination of the original early repayments to the IMF in late 2014 and early 2015, as well as the execution of bilateral bond switches by the NTMA, the 2018 refinancing requirement has been reduced by over €4 billion.
There are €3.9 billion of loans from the European Financial Stabilisation Mechanism (EFSM) with contractual maturity dates in 2018, the first of which is in April. However, owing to the maturity extensions granted in 2013, the EFSM will refinance these loans. The NTMA is currently in discussions with the European Commission regarding the modalities of the refinancing of the 2018 maturing loans.
The NTMA continues to pre-fund and to build up cash and liquid asset balances. These stood at €10.5 billion at end-2017. On 3 January, the NTMA issued a new 10-year bond which raised €4 billion in new funding for the Exchequer.
The Exchequer is well positioned to meet the €8.8 billion bond redemption in October 2018.
EU Budget Contribution
Questions (227)
Éamon Ó Cuív
Question:227. Deputy Éamon Ó Cuív asked the Minister for Finance the payments by the Exchequer to the European Union in 2016 and 2017; the estimated payments for 2018; the receipts from the European Union for 2016; the estimated receipts for 2017 and 2018; and if he will make a statement on the matter. [1268/18]
View answerWritten answers
Member State contributions to the EU Budget are based upon a complex formula which includes Traditional Own Resources (customs duties), a VAT-based payment and a residual balancing component paid in accordance with each Member State's share of EU Gross National Income (GNI).
Ireland's contribution to the EU budget was €2,023 million in 2016 and c. €2,016 million in 2017. Our current forecast for 2018 is €2,650 million. EU budget forecasts are contingent on a number of variables, including the size of the overall EU budget for any individual year and other operational developments which will only emerge as the year progresses. As such, these estimates are monitored and updated on an ongoing basis as new information becomes available.
In relation to receipts, these are published on the Department's website in the Budget Statistics publication. The most recent report highlighted that public sector receipts amounted to c. €1,622 million in 2016.
Data on 2017 will be published in this report later this year, with the data for 2018 following a year later.
Property Tax Collection
Questions (228)
Clare Daly
Question:228. Deputy Clare Daly asked the Minister for Finance the reason for the change in the number of weeks over which the local property tax is deducted from the State pension from 52 weeks to 50; and if he will make a statement on the matter. [1305/18]
View answerWritten answers
I am advised by Revenue that the Local Property Tax (LPT) deduction at source payment option, which includes a number of Department of Employment Affairs and Social Protection (DEASP) schemes, is a very efficient and cost effective method for property owners to meet their obligations.
There are no fees or charges associated with the option and once selected it automatically carries forward to following years unless an alternative payment method is selected.
The change from a 52 week to a 50 week cycle was implemented with effect from 2018 at the request of DEASP to ensure its customers received the full benefit of the Christmas Bonus and double week payment arrangement. The change to a fifty week cycle will have minimal impact on the amounts to be deducted, for example a property owner paying an LPT liability of €268 per year (Band 3) will pay €5.36 per week rather than €5.15 per week over a fifty-two week cycle.
Revenue has assured me that if the reduced payment cycle creates a difficulty for any individuals it will be happy to engage with them to agree a suitable alternative.
Tax Yield
Questions (229)
Michael McGrath
Question:229. Deputy Michael McGrath asked the Minister for Finance the amount of money collected by the Exchequer in each of the years from 2010 to 2017, inclusive, from excise and carbon tax on motor fuel, vehicle registration tax, VRT, motor taxation and value added tax, VAT on motor fuel and on vehicle purchases, in tabular form; the estimated impact the State’s policy of encouraging the purchase of electric vehicles will have on taxation receipts in the future; and if he will make a statement on the matter. [1477/18]
View answerWritten answers
I am advised by Revenue that information on Excise receipts, Carbon Tax on motor fuel and Vehicle Registration Tax for the years 2010 to 2016 are published on the Revenue statistics website at: https://www.revenue.ie/en/corporate/information-about-revenue/statistics/excise/receipts-volume-and-proce/excise-receipts-commodity.aspx.
Provisional data for 2017 are shown in the following table.
|
2017 |
€m |
|
(Provisional) |
|
|
Petrol - Excise |
625 |
|
Diesel -Excise |
1,391 |
|
Petrol - Carbon |
54 |
|
Diesel - Carbon |
179 |
|
VRT |
841 |
As VAT returns do not require the yield from a particular activity or product to be separately identified, the actual VAT collected from the sale of motor fuel and on motor vehicle purchases cannot be identified from Revenue data. However, based on the volume and average price charged, an estimate of the gross VAT receipts collected from the sale of motor oil and vehicles is provided in the following table. Please note these estimates are provided in relation to gross VAT receipts and not the actual total VAT collected.
|
Year |
2010 |
2011 |
2012 |
2013 |
2014 |
2015 |
2016 |
2017 |
|
Estimated VAT €m |
766 |
868 |
886 |
876 |
948 |
1,016 |
1,108 |
1,115 |
The large scale adoption of electric vehicles in the future would be a welcome development from a climate change policy perspective, making a significant contribution to our commitment to de-carbonise the economy by 2050. In the medium to long term, my Department is aware that any such development would also pose a threat to Exchequer receipts in the absence of any countervailing measures to address the reduction in this revenue stream.
It is envisioned that number of options will be adopted to replace excise duty as EVs become the car of choice. The potential development of a system of road users charges and congestion charges will be among the options considered. Similarly, Vehicle Registration Tax and annual Motor Tax could be increased to offset some of the loss.
Insurance Coverage
Questions (230)
Michael McGrath
Question:230. Deputy Michael McGrath asked the Minister for Finance the number and percentage of households here that have home insurance; and if he will make a statement on the matter. [1478/18]
View answerWritten answers
Neither my Department nor the Central Bank of Ireland collect information on the number and percentage of households that have home insurance. I am therefore unable to provide a precise answer to the question. However, the Central Statistics Office collects information in its Household Budget Survey on household home insurance (household building or contents insurance or combined building and contents insurance) expenditure. While this is not a precise indicator of whether a household has home insurance, it does provide a basis for establishing the pattern of household expenditure in relation to home insurance.
The survey is conducted every five years and most recently was undertaken between February 2015 and February 2016, inclusive. I am informed by the CSO that this survey indicated that 91.1% of households, that either own a property outright or own a property with a mortgage, stated that they pay household building or content insurance or combined building and content insurance. The comparable percentage for rented households was 10.4%. I understand that this is based on 1,702,000 households in the State (an estimate of the number of occupied households during the survey’s reference period), of which almost 70% either own a property outright or own a property with a mortgage.
The Deputy will appreciate that with regard to rented households, the type of home insurance that a tenant in such a household might purchase would be for their own contents only, as typically, the buildings and contents insurance would be paid for by the landlord. I understand that the Survey did not collect information from such households as to whether or not the landlord paid insurance for the rented accommodation, so it would be difficult to make any assumptions on whether such households have home insurance or not.
Data Collection
Questions (231, 232)
Michael McGrath
Question:231. Deputy Michael McGrath asked the Minister for Finance if his Department has sought EU approval to proceed with the commencement of section 68 of the Finance Act 2017; when he will commence this measure; if the new measure will be retrospectively applied to qualifying transactions that take place from 1 January 2018 once the approval comes through; and if he will make a statement on the matter. [1493/18]
View answerJackie Cahill
Question:232. Deputy Jackie Cahill asked the Minister for Finance if his Department has sought EU approval to proceed with the commencement of section 68 of the Finance Act 2017; when he will commence this measure; if the new measure will be retrospectively applied to qualifying transactions that take place from 1 January 2018 once the approval comes through; and if he will make a statement on the matter. [1499/18]
View answerWritten answers
I propose to take Questions Nos. 231 and 232 together.
Officials in my Department are currently examining this issue and plan on bringing it to the EU Commission to seek State Aid approval in due course. If State Aid approval is granted, the legislation will, when commenced, apply to purchases and sales of property between 1 January 2018 and 31 December 2020.
Legislative Reviews
Questions (233)
Imelda Munster
Question:233. Deputy Imelda Munster asked the Minister for Finance the projects undertaken to consolidate or amalgamate existing legislation, including the cost, the duration, the number of staff required and if this process was carried out by his Department or outsourced in each of the years from 2007 to 2017 and to date in 2018, in tabular form. [1565/18]
View answerWritten answers
The VAT Consolidation Act 2010 was undertaken as part of Revenue’s business plan, therefore the staff internally worked on the consolidation (primarily one Assistant Principal). The duration of the project was six months and it was enacted and published on 23 November 2010.
The Customs Act 2015 was undertaken as a stand-alone project within the Revenue Commissioners, which was more than just a statutory consolidation of the national customs legislation, being also a modernisation and restructuring of the legislation, some of it dating back over 130 years to 1876.
The Financial Services and Pensions Ombudsman Act 2017 merged the offices of the Pensions Ombudsman and the Financial Services Ombudsman into a single office which provides a one stop shop for people with unresolved complaints against financial service and pension providers. However, this legislation was motivated by the amalgamation of the offices rather than a desire to amalgamate or consolidate the legislation.
Work is ongoing on the preparation of a draft Central Bank Consolidation Bill. A tender was awarded to Matheson to assist the Department in the process. The tender was awarded for a fixed fee of €100,000, however, no monies have been paid to date.
This response relates only to legislation which was prepared by the Department for the specific purpose of either the consolidation or amalgamation of legislation. It does not address legislation that may have amended existing legislation, which inherently tends to include some element of amalgamation.
Corporation Tax
Questions (234, 235)
Peadar Tóibín
Question:234. Deputy Peadar Tóibín asked the Minister for Finance the gross and net corporate tax receipts in each of the years from 2008 to 2017. [1613/18]
View answerPeadar Tóibín
Question:235. Deputy Peadar Tóibín asked the Minister for Finance the amount of interest payments paid to corporate taxpayers in respect of overpaid corporate tax in each of the years from 2008 to 2017. [1614/18]
View answerWritten answers
I propose to take Questions Nos. 234 and 235 together.
I am informed by Revenue that the gross and net Corporation Tax receipts for the years 2008 to 2017 are shown in the following table. Figures for 2017 are provisional and likely to be updated on publication of Revenue’s Annual Report for the year 2017. These figures can also be accessed on the Revenue website at https://www.revenue.ie/en/corporate/press-office/annual-report/index.aspx for recent years and also at https://www.revenue.ie/en/corporate/information-about-revenue/statistics/index.aspx for earlier years.
|
Year |
Gross Corporation Tax |
Net Corporation Tax |
|
€m |
€m |
|
|
2008 |
6,046 |
5,072 |
|
2009 |
5,335 |
3,890 |
|
2010 |
4,920 |
3,944 |
|
2011 |
4,449 |
3,500 |
|
2012 |
5,027 |
4,215 |
|
2013 |
4,978 |
4,270 |
|
2014 |
5,300 |
4,617 |
|
2015 |
7,657 |
6,873 |
|
2016 |
8,206 |
7,352 |
|
2017(p) |
9,349 |
8,202 |
Regarding Question No. 235, Revenue has advised me that the following table sets out the number and value of interest payments made to corporate taxpayers on foot of overpayments for the years 2008 to 2017 inclusive.
|
Year |
Number of Repayments |
Interest Paid €m |
|
2008 |
93 |
0.22 |
|
2009 |
105 |
0.62 |
|
2010 |
56 |
0.05 |
|
2011 |
17 |
0.73 |
|
2012 |
9 |
0.38 |
|
2013 |
6 |
1.00 |
|
2014 |
5 |
0.02 |
|
2015 |
11 |
0.53 |
|
2016 |
5 |
0.01 |
|
2017 |
4 |
0.02 |
|
Total |
311 |
3.58 |
The Deputy may wish to note that Revenue will publish a paper with detailed analysis of Corporation Tax receipts in 2017 in April 2018 once data for last year have been processed.
Mortgage Interest Rates
Questions (236)
Michael McGrath
Question:236. Deputy Michael McGrath asked the Minister for Finance his views on whether mortgage pricing here is excessive in view of the cost of funds being enjoyed by banks; and if he will make a statement on the matter. [1685/18]
View answerWritten answers
A healthy commercial banking system that is in a position to provide finance to customers and is resilient to economic and financial market shocks needs to be able to generate sustainable profits over the long term. In Ireland, the mis-pricing of risks in historical lending continues to be a significant contributor to weak profitability, as evidenced by the continued high level of non-performing loans, prevalence of very low yielding tracker mortgages, and low net interest margins.
Furthermore, the residential mortgage market comprises, inter alia, fixed interest rate, loan to value managed variable rate mortgages, trackers, restructured mortgages of various types, etc. Therefore, the residential mortgage market cannot be assessed by only looking at standard variable rate mortgages, and any assessment, would need to consider the large number of different factors that influence interest rate pricing.
There are legacy issues, together with input costs which include higher costs from credit losses, higher funding costs, higher levels of capital resulting from regulatory changes, higher required capital per euro risk given the severe loss experience in the crisis, higher operating costs per euro of loans given falling balance sheets and the fixed costs base that comes with the infrastructure requirements of large retail banks.
The Central Bank has informed me that it does not have a statutory role to prescribe the rates that mortgage lenders charge on their loans. However, the Central Bank does require that all mortgages are advertised and sold in accordance with the requirements of financial services legislation (including Central Bank Codes), and that consumers who choose a given mortgage product (or to switch to a new product) are treated in accordance with these requirements in the context of the product they have chosen.
Additionally, the Central Bank has carried out research, which showed the scope for borrowers to save money by switching mortgages and the Competition and Consumer Protection Commission has launched a mortgage switching tool for consumers (which itself notes the findings of the Central Bank research of cases where borrowers could make savings).
The Central Bank releases monthly retail interest rate data (Tables B1.1 - B2.1). These statistics satisfy reporting requirements as laid down in Regulation (EC) No 1072/2013 of 24 September 2013 (ECB/2013/34)1 as amended by Regulation of the ECB of 8 July 2014 (ECB/2014/30), concerning statistics on interest rates applied by monetary financial institutions (MFIs) to deposits and loans vis-à-vis households and non-financial corporations. Quarterly mortgage interest rates broken down by property type and interest rate type are also published relating to the Irish market. The most recent statistics are available on centralbank.ie.
In addition, the Central Bank announced the introduction of a number of increased protections for variable rate mortgage holders. The enhanced measures, which are provided for in an Addendum to the Consumer Protection Code 2012, and became effective on 1 February 2017, require lenders to explain to borrowers how their variable interest rates have been set, including in the event of an increase. The measures also improve the level of information required to be provided to borrowers on variable rates about other mortgage products their lender provides which could provide savings for the borrower and signpost the borrower to the CCPC’s mortgage switching tool.
In August 2017, the Central Bank published a Consultation Paper, see link https://www.centralbank.ie/publication/consultation-papers/consultation-paper-detail/cp112-enhanced-mortgage-measures-transparency-and-switching proposing new measures which would enhance the framework of protections for mortgage holders. In that consultation the Central Bank proposed new measures to require lenders to:
- inform consumers about other available mortgage options that could save them money and about the impact of mortgage-related incentives;
- help consumers to compare their existing mortgage to other mortgage options;
- provide consumers with standardised switching information; and
- follow a time-bound switching process.
The consultation period has now ended, and the Central Bank is analysing the responses it received and is considering next steps.
Property Tax Deferrals
Questions (237)
Michael McGrath
Question:237. Deputy Michael McGrath asked the Minister for Finance the amount of local property tax, LPT, liability that has been deferred by liable persons in line with the legislation to date; the number of persons who have availed of this deferral method; the amount of interest that has accrued to date in respect of LPT deferred; and if he will make a statement on the matter. [1686/18]
View answerWritten answers
The Finance (Local Property Tax) Act 2012 (as amended) provides for a deferral or partial deferral (50%) of LPT where certain specified circumstances exist. These circumstances include ‘Income Level’, ‘Hardship’, ‘Personal Insolvency’ and ‘Personal Representative of a Deceased Person’.
Once granted, a deferral normally remains in place for the duration of the ‘valuation period’, which is currently 1 May 2013 to 31 October 2019. However property owners can opt to pay the outstanding liability at any time and discontinue with the deferral. Where a deferral is in place, the outstanding liability remains as a charge on the property and must be paid before a sale or transfer can be completed. Interest is also charged on the deferred amount at a rate of 4% per annum.
Revenue has confirmed that there are currently almost 62,000 properties with LPT deferrals in place amounting to €61.7m (for all years from 2013 to 2017 inclusive). The accumulated interest to date is in the order of €6m.