Dáil Éireann Debate, Wednesday - 13 July 2022
175. Deputy Ged Nash asked the Minister for Finance the cost to the Exchequer of claims for each individual item of allowable expenses against rental income based on the most recent data in tabular form; the cost to the Exchequer of claims from non-residential landlords; and if he will make a statement on the matter. [38687/22]
View answerI am advised by Revenue that, as tax liability is calculated based on the combination of all incomes, reliefs, credits and deductions, it is not possible to provide an exact tax cost for each individual item of allowable expenses. However, in order to estimate tentative costs, it is possible to identify the amounts claimed under each item and apply an average marginal rate of tax. The average marginal rate of tax is the average rate across all taxpayer types and is not confined to those with a rental income.2018 is the latest year for which complete fully analysed data are available. The table below sets out the estimated 2018 tax cost of the allowable expenses against rental income, separated into each individual item as declared on tax returns and further separated into residential and non-residential properties. These costs are based on the amounts claimed regardless of the rental income. If the rental income was lower than the expenses declared, then the full cost of each item would not accrue. The costs outlined in the table can be taken as broadly indicative of an estimated yield for a given year should these claims be excluded.
|
Expense category |
Residential properties €m |
Non-residential properties €m |
|
Repairs |
87 |
15 |
|
Interest |
97 |
47 |
|
Section 23 relief |
1.7 |
N/A |
|
Pre-letting expenditure |
0.6 |
N/A |
|
Leasing of farmland |
N/A |
28 |
|
Other |
123 |
40 |
I am further advised by Revenue that equivalent information for 2019 will be published on its website in the coming weeks.
