Dáil Éireann Debate, Tuesday - 19 October 2021
637. Deputy Colm Burke asked the Minister for Social Protection if rental income in circumstances in which it is used solely to repay a mortgage will be included as an allowable expense when calculating a person's eligibility for disability allowance; and if she will make a statement on the matter. [51235/21]
View answerFor the purposes of disability allowance (DA), means are calculated in accordance with Part 2 of the Schedule 3 of the Social Welfare Consolidation Act 2005, as amended.
Where a DA claimant is in receipt of rental income for a second property, means are assessed based on the capital value of the property rather than income from the letting. Any outstanding mortgage registered against the property is deducted from the market value.
If a portion of the DA claimant's own home is let, any cash income from the portion of the house that is not personally used or enjoyed is assessable against the claimant as income. Deductions from profits are allowed in respect of mortgage interest in proportion to the area used for business purposes. The full loan repayments are not allowed as an expense. If rooms let are furnished then 5% of the gross amount received is allowed for wear and tear along with 15% of the gross receipts allowed for voids.
I trust this clarifies the matter for the Deputy.
