I am advised by Revenue that the figure of €44 million provided in reply to Parliamentary Question No. 81 of 21 June 2018 related to an increase from 80% to 100% deductibility in respect of interest on loans used in the purchase, improvement or repair of rented residential property. The figure of €18 million detailed in the documentation for Budget 2019 relates to an increase from 90% to 100% deductibility in respect of such loans.
The rate of allowable deductibility was increased to 85% on 1 January 2018 and was due to increase to 90% on 1 January 2019, therefore the cost of the acceleration of the full relief from 90% to 100% is the cost referred to in the Budget 2019 publications.
Furthermore, the estimate of €44 million was based on tax returns for 2015 which were the latest returns available at the time. The estimate of €18 million is based on tax returns for 2016. There has been a year-on-year decrease in total declared interest expenses of approximately 20% from 2015 to 2016.