Brendan Griffin
Question:142. Deputy Brendan Griffin asked the Minister for Finance his views on a matter regarding consanguinity relief (details supplied); and if he will make a statement on the matter. [14254/20]
View answerTax Reliefs
Questions (142)
Written answers
Consanguinity relief is the relief that applies in relation to transfers of farmland between certain blood relatives whereby the applicable rate of stamp duty is reduced from 7.5% to 1%. The details and conditions of the relief are set out in Schedule 1(5) of the Stamp Duties Consolidation Act 1999. The relief is due to expire on 31 December 2020.
My Department is currently carrying out an ex-post evaluation of the relief which will examine the case for any amendment or extension of the relief beyond its current expiry date. In this regard, my officials have been in contact with the IFA, the ICMSA and Macra na Feirme, as well as with their colleagues in the Department of Agriculture, Food and the Marine and Revenue in order to gather views and opinions which will help inform the evaluation of the relief. The findings of this evaluation will feed into the decision-making process in the run up to Budget 2021 and Finance Bill 2020.
The Deputy will appreciate that it would not be appropriate for me to comment at this time, on what changes, if any, are being considered in terms of this relief or any other tax relief.
Help-To-Buy Scheme
Questions (143)
Réada Cronin
Question:143. Deputy Réada Cronin asked the Minister for Finance if he will revisit the help-to-buy scheme in terms of its loan-to-value ratio borrowing requirement being 70% when such threshold precludes significant numbers from accessing the scheme; and if he will make a statement on the matter. [14510/20]
View answerWritten answers
The Programme for Government ‘Our Shared Future’ includes a commitment to "retain and expand the Help to Buy scheme for new properties and self-build properties". The intention is to deliver on this and other commitments in the programme within the duration of the life of the Government.
In relation to the 70% loan to value floor in the scheme, I should also point out that one of the central policy aims of the Help to Buy scheme is to help make mortgages more accessible to first-time buyers, many of whom have difficulty securing the required deposit under the Central Bank macro-prudential rules. Individuals who are in the fortunate position of being able to avail of a mortgage at a lower loan-to-value ratio than 70% are considered to have sufficient resources to more than meet the deposit requirements of the macro-prudential rules and thus may be less in need of assistance from the Exchequer.
Mortgage Lending
Questions (144)
Mary Butler
Question:144. Deputy Mary Butler asked the Minister for Finance the position regarding the reported refusal by a bank (details supplied) to allow a first-time buyer to draw down a mortgage in August 2020 should the person who has been professional disaffected by the pandemic continue to be in receipt of the pandemic unemployment payment, when the house is built and ready for occupancy; his views on whether this reported anomaly could potentially pose a widespread problem for first-time buyers in their dealings with banks and lending institutions going forward; and if he will make a statement on the matter. [13721/20]
View answerWritten answers
In the context of mortgage lending, the European Union (Consumer Mortgage Credit Agreements) Regulations 2016 (CMCAR) provides that, before concluding a mortgage credit agreement, a lender must make a thorough assessment of the consumer’s creditworthiness. The assessment must take appropriate account of factors relevant to verifying the prospect of the consumer being able to meet his or her obligations under the credit agreement. The CMCAR further provides that a lender should only make credit available to a consumer where the result of the creditworthiness assessment indicates that the consumer’s obligations resulting from the credit agreement are likely to be met in the manner required under that agreement. The assessment of creditworthiness must be carried out on the basis of information on the consumer’s income and expenses and other financial and economic circumstances which is necessary, sufficient and proportionate. In addition, the Central Bank’s Consumer Protection Code 2012 imposes ‘Knowing the Consumer and Suitability’ requirements on lenders. Under these requirements, lenders are required to assess affordability of credit and the suitability of a product or service based on the individual circumstances of each borrower.
Within the parameters of this regulatory framework, the decision to grant or refuse an individual application for mortgage credit is a commercial decision to be made by the regulated entity and it is not appropriate or possible for me to instruct lenders in that regard. Nevertheless, lenders continue to process mortgage applications and have supports in place to assist customers impacted by COVID-19. The Banking & Payments Federation Ireland (BPFI) has published a Covid-19 Support FAQ which customers can consult, or customers can contact their lender directly, if they have any queries or concerns about the impact of COVID-19 on their mortgage application. The FAQ indicates that lenders may extend the period of a mortgage Approval in Principle where an individual’s circumstances have not materially changed as a result of COVID-19. The BPFI state that this will likely be for 3-6 months, but it may vary depending on the lender’s assessment of an individual’s circumstances. However, if a borrower's circumstances have materially changed as a result of Covid-19, the BPFI advises that lenders may keep the application open on its system for a period of time; but this again may vary depending on the lender’s assessment of an individual’s circumstances. After this period of time, the BPFI states that the lender will undertake a review of the application which will likely include a request for the individual to provide an update on their employment and income situation.
More generally the Central Bank has indicated that it expects all regulated firms to take a consumer-focused approach and to act in their customers’ best interests at all times, including during the COVID-19 pandemic.
Mortgage Lending
Questions (145)
Richard Boyd Barrett
Question:145. Deputy Richard Boyd Barrett asked the Minister for Finance the action he will take regarding the fact that many banks are refusing to allow persons in receipt of the temporary wage subsidy scheme who have been approved for mortgages to draw down those mortgages while in receipt of the subsidy; and if he will make a statement on the matter. [13731/20]
View answerWritten answers
The Central Bank has advised that it expects all regulated firms to take a consumer-focused approach and to act in their customers’ best interests at all times, including during the COVID-19 pandemic, and my Department maintains close contact with the Central Bank and Banking & Payments Federation Ireland (BPFI) as the lending industry works to address the difficulties the COVID-19 situation is causing for both borrowers and lenders.
In that context, lenders continue to process mortgage applications and have supports in place to assist customers impacted by COVID-19. The BPFI has published a Covid-19 Support FAQ which customers can consult, or customers can contact their lender directly, if they have any queries or concerns about the impact of COVID-19 on their mortgage application.
However, within the parameters of the regulatory framework, as set out below, the decision to grant or refuse an individual application for mortgage credit, or temporarily suspend a mortgage approval in principle, is a commercial decision to be made by the regulated entity and it is not appropriate or possible for me to instruct lenders in that regard.
The European Union (Consumer Mortgage Credit Agreements) Regulations 2016 (CMCAR) provide that, before concluding a mortgage credit agreement, a lender must make a thorough assessment of the consumer’s creditworthiness. The assessment must take appropriate account of factors relevant to verifying the prospect of the consumer being able to meet his or her obligations under the credit agreement and must be carried out on the basis of information on the consumer’s income and expenses and other financial and economic circumstances which is necessary, sufficient and proportionate. The CMCAR further provides that a lender should only make credit available to a consumer where the result of the creditworthiness assessment indicates that the consumer’s obligations resulting from the credit agreement are likely to be met in the manner required under that agreement. In addition, the Central Bank’s Consumer Protection Code 2012 imposes ‘Knowing the Consumer and Suitability’ requirements on lenders. Under these requirements, lenders are required to assess affordability of credit and the suitability of a product or service based on the individual circumstances of each borrower.
Disabled Drivers and Passengers Scheme
Questions (146)
Paul Kehoe
Question:146. Deputy Paul Kehoe asked the Minister for Finance the status of the processing of the revised claim for fuel grant for members of the drivers and passengers with disabilities scheme; if the case of a person (details supplied) will be addressed; and if he will make a statement on the matter. [13756/20]
View answerWritten answers
I have asked my officials to investigate the status of this claim and if all is in order to ensure payment is made without further delay. I understand that the initial delay was due to an error in the online claim. I have further asked my officials to revert directly to the Deputy on the matter in the coming days.
Tax Reliefs
Questions (147)
Brendan Griffin
Question:147. Deputy Brendan Griffin asked the Minister for Finance if relief is available on donations to reconstruct a building (details supplied); and if he will make a statement on the matter. [13759/20]
View answerWritten answers
The Deputy’s question relates to tax relief under section 847A Taxes Consolidation Act 1997 (TCA) for donations to certain sports bodies for the funding of capital projects.
I am advised by Revenue that the sports body in question has been granted exemption under section 235 TCA, which means that donations to the sports body for the purpose of the capital project would be eligible for tax relief under section 847A TCA, provided the other conditions of the relief are met. In particular, the capital project in question must be approved by the Minister for Media, Tourism, Arts, Culture, Sports and the Gaeltacht. The sports body must also possess valid tax clearance.
The other conditions in section 847A TCA that must be met for the donation to qualify for the relief are that:
- the donation is made to the approved sports body for the sole purposes of funding an approved project;
- the donation is or will be applied by that body for that purpose;
- the donation is not otherwise deductible in computing the profits or gains of a trade or profession or deductible as an expense of management in computing the profits of a company;
- the donation is not a relevant donation relievable under section 848A TCA (which deals with relief for donations to approved charities);
- the donation is not liable to be repaid;
- neither the donor nor any person connected with the donor receives a benefit, whether directly or indirectly, as a result of making the donation;
- the donation is not conditional on or related to the acquisition of property by the approved sports body (otherwise than by way of gift) from the donor or any person connected with the donor; and,
- in the case of a donation made by an individual, the individual is resident in the State for the year of assessment in which the donation is made, and in the case of a taxpayer who is not within the self-assessment system, the individual has given an appropriate certificate to the approved sports body in relation to the donation and has paid the tax referred to in such certificate and is not entitled to a repayment of that tax or any part of that tax.
A list of all sporting bodies granted exemption under section 235 TCA is available on the Revenue website at: www.revenue.ie/en/corporate/documents/statistics/registrations/sports-bodies-numeric.pdf.
Value Added Tax
Questions (148)
Michael Healy-Rae
Question:148. Deputy Michael Healy-Rae asked the Minister for Finance when a decision will be made regarding the VAT rate for the hospitality and tourism sector in view of the current crisis the sector faces; and if he will make a statement on the matter. [13772/20]
View answerWritten answers
The Government is fully aware of the unprecedented impact that the coronavirus is having on business and people’s livelihoods. In this regard a range of measures have been introduced to provide income support to those who need it while also giving confidence to employers to retain the link with employees so that when this crisis passes our people can get back to work as quickly and seamlessly as possible.
This Government is currently preparing a the July stimulus package which will set out supportive measures for a wide range of sectors including the hospitality and tourism sectors to ensure that the economy is in a position to recover rapidly while maintaining a stable tax base. Details of the July stimulus package will be announced by Government shortly.
Revenue Commissioners
Questions (149)
Pádraig O'Sullivan
Question:149. Deputy Pádraig O'Sullivan asked the Minister for Finance when the office of the Revenue Commissioners in Cork will reopen to the public; and if he will make a statement on the matter. [13783/20]
View answerWritten answers
I am advised by Revenue that it closed its public offices, including the Cork office, in accordance with the Government measures announced on 27 March 2020 to suppress the transmission of COVID-19. Revenue has also confirmed that it is adhering to the public health advice that people work from home to the greatest extent possible. To facilitate such ‘remote working’ Revenue has provided the required IT and telephony support to staff so that service to customers is maintained.
I am aware that Revenue has continued to provide a full online service to its customers since the restrictions began and is for the most part delivering a next day response to queries received through the MyEnquiries channel. A similar level of service is being provided in respect of queries received through the postal service. Revenue has also maintained the National Employers Helpline and ROS Helpdesk throughout the pandemic to ensure claimants of the Temporary Wage Subsidy Scheme (TWSS) have a comprehensive support if required to assist them receive their entitlements.
Revenue is fully aware that not all customers can access its online services for a variety of reasons such as poor broadband connectivity or lack of IT skills and is prioritising reopening services as quickly as possible, while continuing to have regard to public health advice. For example, the National PAYE Helpline (01-738 3636) and the Local Property Tax Helpline (01-738 3626) have reopened in recent days on a 9.30am to 1.30pm basis (Monday to Friday) and it is intended that the other Helplines will follow as quickly as possible.
I am advised by Revenue that the position of public offices, including the Cork office, is under review and decisions will be made in accordance with public health advice and will focus on customer and staff safety as its highest priority. As was the case for most of its public offices before the pandemic, Revenue will re-open on an appointment only basis for customers and that all such appointments will fully observe the necessary social distancing protocols.
Finally, if the Deputy is aware of a specific customer that requires assistance from Revenue, he can provide the details through the Oireachtas Helpline at telephone number 01-8589999.
Covid-19 Pandemic Supports
Questions (150)
Cathal Crowe
Question:150. Deputy Cathal Crowe asked the Minister for Finance if he will consider implementing a number of measures (details supplied) in view of the economic effects of the Covid-19 pandemic. [13808/20]
View answerWritten answers
The flexible approach taken by Revenue to debt collection, accrual of interest and enforcement activity to date has provided vital liquidity support to businesses during the COVID-19 crisis.
In this context, Revenue has emphasised the importance of businesses continuing to file tax returns promptly, even in circumstances where they cannot pay the associated liabilities. Revenue has also acknowledged that some businesses may have difficulty in completing accurate returns due to the pandemic and in such circumstances advises that they submit a best estimate, which can be amended at a later date if necessary. This is important to enable both Revenue and my Department to have a clear picture of the portfolio of emerging tax debt, particularly debt that may be included in the proposed tax ‘debt warehousing’ arrangements that will be provided for in future legislation. In relation to ‘debt warehousing’, it will be a condition of that scheme that tax returns are up to date.
It is too early to make decisions regarding tax filing deadlines that fall due later in the year, for example the self-assessment ‘pay & file’ date of 31 October 2020 (12 November if filing and paying via ROS), as it is not possible to fully predict the progress of public health measures and their impact on the ability of businesses to meet tax filing and payment obligations. However, I have every confidence that Revenue will make appropriate decisions regarding these matters in due course and will continue to support businesses affected by the pandemic to the greatest extent possible, as has been the case to date.
Wage Subsidy Scheme
Questions (151)
Eoin Ó Broin
Question:151. Deputy Eoin Ó Broin asked the Minister for Finance the way in which the temporary wage subsidy scheme evaluates average pay for furlough if unpaid sick leave was taken in December 2019 and January 2020 which has subsequently impacted negatively on an employee’s average furlough pay. [13812/20]
View answerWritten answers
The Temporary Wage Subsidy Scheme (TWSS) is provided for in section 28 of the recently enacted Emergency Measures in the Public Interest (Covid-19) Act 2020. The Deputy will be aware that the TWSS is an emergency measure to deal with the impact of the Covid-19 pandemic on the economy. Of necessity, the underlying legislation and the scheme itself were developed rapidly, having regard to the Government objective of providing financial assistance to employers and employees, where businesses have been seriously affected by the pandemic and the necessary restrictions that were introduced as a result.
In the context of the need for immediate implementation of the TWSS, the scheme necessarily had to build on data returned to Revenue through its real-time PAYE system. The key conditions of the scheme, as prescribed in the underlying law, are that:
- the business is suffering significant negative economic impact due to the pandemic,
- the employees were on the payroll at 29 February 2020, and
- the employer had fulfilled its PAYE reporting obligations for February 2020 before, in general, 15 March 2020, but extended recently to before 1 April 2020.
For the purposes of the operation of the TWSS, the Average Revenue Net Weekly Pay is the employee’s average net weekly pay for January and February 2020 based on the payroll submissions made by the employer concerned to Revenue.
I have been advised by Revenue that if no payroll is on record for an employee in January due to unpaid sick leave, then Revenue will use the February payroll submissions for the calculation of the Average Revenue Net Weekly Pay and divide that by the number of insurable weeks reported in that period. Thus, an employee would not be negatively impacted if he or she only had payroll submissions covering four weeks during the January and February period as the calculation is proportionate to the number of insurable weeks reported.
Wage Subsidy Scheme
Questions (152, 153, 160, 166, 183)
Cathal Crowe
Question:152. Deputy Cathal Crowe asked the Minister for Finance if the criteria for the temporary wage subsidy scheme will be redefined to ensure that seasonal workers and businesses are not being left to struggle alone with no supports as they reopen in line with advice [13814/20]
View answerBrendan Griffin
Question:153. Deputy Brendan Griffin asked the Minister for Finance his views on a matter (details supplied) regarding the temporary wage subsidy scheme; and if he will make a statement on the matter. [13817/20]
View answerBrendan Griffin
Question:160. Deputy Brendan Griffin asked the Minister for Finance if he will extend the temporary wage subsidy scheme to a business (details supplied); and if he will make a statement on the matter. [13913/20]
View answer
Martin Browne
Question:166. Deputy Martin Browne asked the Minister for Finance the supports available for tourism businesses which are seasonal and would normally be operating at full capacity (details supplied); his views on whether a seasonal average would be fairer for tourism businesses; and if plans are in place to make allowances for the seasonality of businesses in the tourism sector. [14108/20]
View answerCathal Crowe
Question:183. Deputy Cathal Crowe asked the Minister for Finance if the temporary wage subsidy scheme will be extended to seasonal workers; and if not, if a specific measure will be put in place to support such workers to allow them have an income stream and to ensure hotels and restaurants have a full complement of staff for the reduced tourist season. [14421/20]
View answerWritten answers
I propose to take Questions Nos. 152, 153, 160, 166 and 183 together.
The Temporary Wage Subsidy Scheme (TWSS) is provided for in section 28 of the Emergency Measures in the Public Interest (Covid-19) Act 2020.
The TWSS is an emergency measure to deal with the impact of the Covid-19 pandemic on the economy. Of necessity, the underlying legislation and the scheme itself were developed quickly, having regard to the objective of getting assistance to employers and employees, where businesses have been seriously affected by the pandemic and the necessary restrictions introduced to fight the spread of the Covid-19 virus.
In the context of the compelling need for immediate implementation of the TWSS, the scheme necessarily had to build on data returned to Revenue through its real-time PAYE system. The key conditions of the scheme, as prescribed in the underlying law, are that –
- the business is suffering significant negative economic impact due to the pandemic,
- the employees were on the payroll at 29 February 2020, and
- the employer had fulfilled its PAYE reporting obligations for February 2020 before, in general, 15 March 2020, but extended recently to 1 April 2020.
The latter two conditions were particularly designed with a view to preventing abuse of the scheme. The wage subsidy per employee is calculated based on the net pay reported for January and February 2020. It follows that the TWSS can only operate in respect of an employee, whether full-time or part-time, who was on the payroll of the employer as at 29 February 2020. Thus, where an individual commenced a new employment after that date, or returned to the payroll of his or her employer after that date following a period of unpaid leave, he or she does not meet the eligibility criteria with the employer as he or she would not have been on the employer’s payroll at that date. There are no plans at the present moment to revisit the core criteria.
The Deputies will be aware that the Government decided on 5 June 2020 to extend the Temporary Wage Subsidy Scheme (TWSS) until the end of August. The intention is to continue to monitor the scheme closely in the coming period.
The new Programme for Government contains a commitment that a July Jobs Initiative will be brought forward which will, among other things, "set out a pathway for the future implementation of the Temporary Wage Subsidy". The matter raised by the Deputies will be one of the many factors that will be taken into account as part of that exercise.
In relation to other direct support measures, I would draw the Deputies' attention to a recent publication by the Department of Business, Enterprise and Innovation, which outlines the key financial supports and resources that are being made available to help all businesses and sectors impacted by Covid-19. This publication is available at the following link:
www.gov.ie/en/publication/c644c0-supports-for-businesses-impacted-by-covid-19/.
Wage Subsidy Scheme
Questions (154, 190)
Noel Grealish
Question:154. Deputy Noel Grealish asked the Minister for Finance the estimated number of taxpayers in receipt of the temporary wage subsidy scheme who will have an additional tax, USC and or PRSA liability as a result of the tax at the end of 2020; the average amount liable; the number of taxpayers on the pandemic unemployment payment who are projected to have an additional tax, USC and or PRSA liability at the end of 2020 as a result of receiving same; the average amount liable; and if he will make a statement on the matter. [13820/20]
View answer
Pearse Doherty
Question:190. Deputy Pearse Doherty asked the Minister for Finance the planned tax treatment for Covid-19 pandemic unemployment payments, particularly in which the tax liability for those payments exceeds unused personal and PAYE tax credits for 2020; the planned tax treatment for payments made through the temporary wage subsidy scheme particularly in which the tax liability for those payments exceeds unused personal and PAYE tax credits for 2020; and the considerations provided by his Department to introduce legislation that would prohibit interest accrual for mortgage holders availing of a moratorium or payment break in the context of Covid-19 as was implemented in other EU jurisdictions. [14568/20]
View answerWritten answers
I propose to take Questions Nos. 154 and 190 together.
Section 28 of the Emergency Measures in the Public Interest (Covid-19) Act 2020 provides for the Temporary Wage Subsidy Scheme (TWSS). The scheme is designed to maintain the key relationship between employers and employees and minimise the impact on the economy to the greatest extent possible during the public health restrictions necessitated by the COVID-19 pandemic.
Based on the most recent statistics, for the week to 2 July 2020, 410,000 employees are currently being supported by the scheme and almost 568,000 employees have received a subsidy since commencement. In addition, the Department of Social Protection and Rural Affairs has indicated that since the start of the pandemic over 730,000 people have applied for the Pandemic Unemployment Payment (PUP).
Payments made under both the TWSS and PUP are income supports and share the characteristics of income and are subject to tax. The TWSS is also subject to USC while the PUP follows the general taxation rule for social welfare payments and is exempt from that charge. Both schemes are exempt from PRSI charges. However, neither scheme is being taxed in real-time through the PAYE system, but recipients may become liable for tax and USC (for TWSS) at the end of the year, which will be calculated by Revenue through the employee End of Year Review process.
The level of tax and USC due by any person at year end in respect of TWSS and PUP payments may be reduced or eliminated by the amount of unused tax credits available. Any liability due may also be further reduced if the person has additional tax credits, for example health expenses, to offset. Revenue has also very recently placed all recipients of either the TWSS or the PUP on the ‘week 1 basis’ of taxation for the remainder of 2020 to ‘preserve’ unused tax credits that can then be used to offset any tax or USC liabilities that arise.
Revenue has also assured me that if any tax and USC liabilities still arise following the allocation of unused credits, it will work with the persons impacted upon to collect the outstanding liabilities over an extended period. This will be achieved by reducing their tax credits for future years, thereby minimising any financial hardship to the greatest extent possible.
I am advised by Revenue that the final calculation of the end of year liability for each person is dependent on a range of factors, including a person’s civil status, the available tax credits, the actual amounts received during the year under the TWSS and PUP schemes, any top-up payments made by the employer, as well as other entitlements and credits, such as health expenses. As there are considerable differences in each person’s tax circumstances, it is not yet possible to provide details of the estimated undercharges (if any) arising from the taxation of TWSS and PUP payments. It is also not yet possible to estimate the numbers of taxpayers who may have such undercharges as these details will not be available with any degree of accuracy until after the year end.
In relation to Deputy Doherty's point regarding payment breaks for mortgage holders, I welcomed the announcement by the Banking and Payments Federation of Ireland (BPFI) of the introduction of the payment breaks for those affected by Covid-19 in March for 3 months and the subsequent announcement on 30 May of the extension to the payment breaks for a possible further 3 months, on a non-legislative basis. Figures released by the BPFI on 28 May stated that over 78,000 payment breaks were in place for mortgages and work is ongoing in relation to those seeking to avail of the 2nd payment break. These payment breaks have provided welcome breathing space and support for those affected by Covid-19.
As the Deputy will be aware, the Central Bank expects lenders to clearly explain to their customers the implications of a payment break; for the term, payment schedule, and costs of the loan. The Central Bank has communicated its expectations to financial institutions that at the end of the agreed payment break, borrowers should be given the option to either (i) repay the loan within the remaining term or (ii) extend the term of the loan. This choice should apply for all loans, including mortgages, and the impact of both options on the overall cost of credit and monthly repayments should be fully explained to the customer, noting that borrower circumstances and the appropriateness of each option will differ. As part of their supervisory work, they will be monitoring compliance with this expectation and take action, where their expectations are not met.
Home Repossessions Rate
Questions (155)
Bernard Durkan
Question:155. Deputy Bernard J. Durkan asked the Minister for Finance the number of repossessions of family homes carried out by each of the main banks in each of the past five years to date; the number of multiple residence developments affected in the same period; and if he will make a statement on the matter. [13847/20]
View answerWritten answers
I have been advised by the Central Bank of Ireland that within the remit of their responsibilities for safeguarding stability and protecting consumers, its approach to mortgage arrears resolution is focused on ensuring the fair treatment of borrowers through a strong consumer protection framework and ensuring that lenders have appropriate arrears resolution strategies and operations in place.
The Code of Conduct on Mortgage Arrears (CCMA) forms part of the Central Bank’s Consumer Protection Framework. It is a statutory Code first introduced by the Central Bank in February 2009, with the current CCMA becoming effective from 1 July 2013. The CCMA provides a strong consumer protection framework, aimed specifically at the process to be followed by relevant firms, to ensure borrowers in arrears or pre-arrears in respect of a mortgage loan secured on a primary residence are treated in a timely, transparent and fair manner.
Under the CCMA, a regulated entity may only commence legal proceedings for repossession where it has made every reasonable effort to agree an alternative repayment arrangement (ARA) with the borrowers and other clear requirements are met or the borrower has been classified as not co-operating.
This framework requires lenders to exhaust the options available from the suite of ARAs offered before taking action which may result in the borrower losing his/her home (whether by voluntary sale or repossession). During the legal process, borrowers have opportunities to re-engage with lenders to find a solution. In some circumstances, however, loss of ownership may be unavoidable.
The Residential Mortgage Arrears, Restructures and Repossessions Statistics published every quarter provides detail in relation to the number of home mortgage repossessions. The data is published on the central bank website
https://centralbank.ie/statistics/data-and-analysis/credit-and-banking-statistics/mortgage-arrears.
The following tables provide a summary of owner occupier (Principal Dwelling house (PDH)) repossessions over the previous five years. The available data is broken out into Banks and Non-bank lenders, not by individual banks. Furthermore, no separate breakout of the data is currently available in relation to number of multiple residence developments.
PDH properties TOTAL (bank & non-bank)
|
2015 |
2016 |
2017 |
2018 |
2019 |
2020 (Q1) |
|
|
Total Residential properties repossessed in the period |
1,535 |
1,693 |
1,417 |
878 |
535 |
64 |
|
-Properties repossessed on foot of an order |
726 |
492 |
526 |
250 |
144 |
25 |
|
- Properties voluntarily surrendered/abandoned |
809 |
1,201 |
891 |
628 |
391 |
39 |
PDH - Banks
|
2015 |
2016 |
2017 |
2018 |
2019 |
2020 (Q1) |
|
|
Total Residential properties repossessed in the period |
1,299 |
1,452 |
1,269 |
779 |
417 |
39 |
|
- Properties repossessed on foot of an order |
603 |
417 |
455 |
203 |
74 |
14 |
|
- Properties voluntarily surrendered/abandoned |
696 |
1,035 |
814 |
576 |
343 |
25 |
PDH - Non-Banks
|
2015 |
2016 |
2017 |
2018 |
2019 |
2020 (Q1) |
|
|
Total Residential properties repossessed in the period |
236 |
241 |
148 |
99 |
118 |
25 |
|
- Properties repossessed on foot of an order |
123 |
75 |
71 |
47 |
70 |
11 |
|
- Properties voluntarily surrendered/abandoned |
113 |
166 |
77 |
52 |
48 |
14 |
Vehicle Registration Tax
Questions (156)
Catherine Murphy
Question:156. Deputy Catherine Murphy asked the Minister for Finance his plans to amend the rate of VRT due on vehicles that are being purchased for use as a taxi and or private limousine service; and if he will make a statement on the matter. [13848/20]
View answerWritten answers
There are currently five VRT categories which determine the basis of the applicable VRT charge. I have no plans to make changes to the type of vehicles that are in these categories.
Tax Credits
Questions (157)
Fergus O'Dowd
Question:157. Deputy Fergus O'Dowd asked the Minister for Finance if a response to correspondence regarding single person child carer credit, SPCCC, will issue (details supplied). [13858/20]
View answerWritten answers
The issue raised by the Deputy relates to the eligibility criteria for the Single Person Child Carer Credit (SPCCC).
The SPCCC is a tax credit that is available to a single person who has a “qualifying child” resident with him/her for the whole or greater part of the tax year and who satisfies the other conditions of the relief. The value of the credit is €1,650 for each tax year. In addition to the credit, a claimant is entitled to an additional €4,000 on the standard rate income tax band (i.e. the amount on which tax is paid at the lower rate of tax, which is currently 20%). An individual can only receive one SPCCC irrespective of the number of qualifying children residing with him/her.
To qualify as a single person for the purposes of the SPCCC, the individual must not be jointly assessed for income tax as a married person or civil partner, living with his/her spouse or civil partner, or cohabiting with a partner.
A qualifying child includes a child born in the tax year, a child who was under the age of 18 at the start of the tax year or a child who was over the age of 18 at the start of the tax year if he/she is either in full-time education or is permanently incapacitated by reason of mental or physical infirmity from maintaining himself/herself. A qualifying child also includes a permanently incapacitated individual who is over the age of 21, if he/she became permanently incapacitated before reaching the age of 21 or while in full-time education.
The credit is ordinarily given to the primary claimant. The primary claimant is the individual who proves that a qualifying child resides with him/her for the whole or the greater part of the tax year (i.e. a period greater than six months) and that the child is either his/her own child or a child who has been placed in his/her custody.
A primary claimant can relinquish his/her entitlement to the SPCCC to a secondary claimant. The secondary claimant can then claim the credit if he/she qualifies as a single person and the qualifying child resides with him/her for at least 100 days throughout the tax year.
Detailed information on the Single Person Child Carer Credit can be found on Revenue’s website at the following link:
www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-15/15-01-41.pdf.
Primary Medical Certificates
Questions (158, 187)
Paul Kehoe
Question:158. Deputy Paul Kehoe asked the Minister for Finance the status of the resumption of oral hearings for the appeal of the primary medical certificate that needed to be cancelled in April 2020; and if he will make a statement on the matter. [13865/20]
View answer
Brendan Smith
Question:187. Deputy Brendan Smith asked the Minister for Finance his plans to improve the criteria for the primary medical certificate; and if he will make a statement on the matter. [14535/20]
View answerWritten answers
I propose to take Questions Nos. 158 and 187 together.
I have been advised that hearings of the Disabled Drivers Medical Board of Appeal have been postponed due to Covid-19 restrictions, where the fact that many appellants would likely be in the vulnerable or high-risk Covid-19 category is a relevant consideration.
I have also been advised that a Supreme Court decision of 18 June found in favour of two appellants against the Disabled Drivers Medical Board of Appeal’s refusal to grant the individuals Primary Medical Certificates (PMC). My officials are currently examining the judgement, in conjunction with the Attorney General’s Office, and will bring forward any policy and/or legislative proposals, as necessary, for my consideration in due course.
Insurance Coverage
Questions (159)
Joe O'Brien
Question:159. Deputy Joe O'Brien asked the Minister for Finance if his attention has been drawn to the practice that is carried out by insurance companies to impose a limit on the number of years a person cannot have insurance before they lose access to a no claims bonus (details supplied); and if he will make a statement on the matter. [13901/20]
View answerWritten answers
At the outset you should note that neither I, as Minister for Finance, nor the Central Bank of Ireland can interfere in the provision or pricing of insurance products or have the power to direct insurance companies to provide cover to specific individuals or businesses. This position is reinforced by the EU framework for insurance (the Solvency II Directive) which expressly prohibits Member States from doing so. Consequently, I am not in a position to direct insurance companies as to how they price their policies or the terms and conditions they apply in those policies.
On a general level, my understanding is that insurers will use a combination of rating factors in making their individual decisions on whether to offer cover and what terms to apply. For example, in relation to motor insurance, factors may include those such as the age of the driver and the relevant driving experience, as well as the age and type of vehicle, how the vehicle is used, the claims record, the number of drivers, and the location of storage. Insurers also price in accordance with their own past claims experience, and do not all use the same combination of rating factors, so as a result prices vary across the market.
In respect of motorists, such as those noted in the details supplied, who lose access to a “no claims bonus” because they have not been insured for a number of years, I understand that in general, this is because insurance companies set a date by which a no-claims bonus will expire, where the driver has held no insurance in their own name for two or more years. This applies whether the person continues to reside in Ireland, or they decide to move abroad and it is primarily a commercial matter for insurance companies. I understand from Insurance Ireland that this is because the possession of continuous insurance without making a claim is taken as positive evidence of the unlikelihood of a future claim being made – thus resulting in a discount on their premium known as a no claims bonus. They also note that different insurers will price the increased likelihood of a claim being made in the absence of such continuous insurance in different ways and that most will refuse to apply a no claims bonus in situations where there has been no driving experience for a set number of years. As previously mentioned, such decisions are commercial and based on their application of the rating factors noted above and also on the fact that the risk profile of such a person has changed.
The Deputy should note that during the Cost of Insurance Working Group’s work in relation to motor insurance, this issue was raised mainly in the context of returning emigrants, who may have found it difficult to secure insurance, despite having driving experience while abroad. In this respect, a protocol was agreed between Insurance Ireland and the Department of Finance, under which insurance companies committed to accepting the driving experience of such drivers gained while abroad, when the driver has had previous driving experience in Ireland. The details of it is available on Insurance Ireland’s website and the websites of its member companies. The guiding principle of the protocol is to ensure that a returning emigrant is not treated differently to any other driver, subject to verification of their continued driving experience and the normal acceptance criteria of the company. Thus, a returning emigrant will not be disadvantaged from spending that time abroad. Furthermore, under the protocol, insurance companies will not distinguish between countries on the basis of which side of the road driving takes place therein.
It is important to note that the protocol also states that if more than two years have passed since the Irish motor insurance policy was cancelled/lapsed, the Irish No Claims Discount is no longer valid. Notwithstanding this, if the person has been abroad for longer than two years, Insurance Ireland members have agreed through the protocol that if the person has claims-free driving experience in a different country in their own name, they will take this experience into consideration if that person seeks a quotation from an insurer, on their return to Ireland, subject to the appropriate verifiable documentation being provided.
Finally, any motorist having difficulty in relation to this issue can contact Insurance Ireland, who operate a free Insurance Information Service for those who have queries, complaints or difficulties in relation to obtaining insurance at feedback@insuranceireland.eu.
Question No. 160 answered with Question No. 152.