Dáil Éireann Debate, Wednesday - 1 June 2022
82. Deputy Brendan Griffin asked the Minister for Finance if he will increase tax relief to incentivise landlords to rent properties long-term in order to alleviate the current housing crisis; and if he will make a statement on the matter. [28261/22]
View answer88. Deputy Claire Kerrane asked the Minister for Finance if consideration has been given to reducing taxation on rental income in an effort to address rising rent prices; if there are any taxation incentives for landlords which seek to reduce rental prices in the market; and if he will make a statement on the matter. [28386/22]
View answerI propose to take Questions Nos. 82 and 88 together.
The Government's comprehensive strategy to address the various policy challenges relating to housing is as set out in ‘Housing for All’.
Under the Housing for All strategy, my Department is committed to review the recommendations of the Report of the Working Group on the Tax and Fiscal Treatment of Rental Accommodation Providers (2017) by Q3 2022. I understand that this work is in hand. A copy of the 2017 report is available at:
www.gov.ie/en/collection/51d1c-budget-2018/.
The Deputies may wish to be aware that two options presented in the above report have been implemented. The first relates to allowing deductibility for pre-letting expenditure for previously vacant properties (extended recently in Finance Act 2021). The second restored to 100% from January 2019 the amount of interest that can be deducted on mortgages for residential rental properties. Both measures might be expected to contribute to a modest extent at least to the desired outcome mentioned in Deputy Kerrane's question.
As regards further tax measures aimed at assisting landlords, the position is that proposals for any new tax reliefs must be assessed in accordance with my Department's Tax Expenditure Guidelines. These make clear that it is important that any policy proposal which involves tax expenditures should only occur in limited circumstances. In particular, they provide that a tax-based incentive should only be considered where it would be more efficient than a direct expenditure intervention.
Currently, I have no plans to introduce measures along the lines of those outlined by the Deputies. I look forward to the outcome of my Department’s review of the 2017 report in due course.
