Tax Reliefs

Thursday, 28 September 2023

Questions (168)

Jim O'Callaghan

Question:

168. Deputy Jim O'Callaghan asked the Minister for Finance if he will detail the tax reliefs or incentives that are currently in place with regard to the purchase, rental or renovation of property for residential use; the date of which each relief or incentive commenced; if any cost-benefit analysis or review of each relief or incentive has been conducted; and if he will make a statement on the matter. [41997/23]

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Written answers

Minister for Finance

The below table sets out current tax relief or incentives which can be claimed for the first time relating to the purchase, rental or renovation of property for residential use, the date of introduction, if a review was carried out, and details of the most recent such reviews.

Name of Relief	Start Date	Cost Benefit Analysis/Review Y/N	Cost Benefit Analysis/Review Details
Help to Buy	01/01/2017	Y	Review of Help to Buy scheme (Mazars 2022)
Living City Initiative	05/05/2015	Y	Tax Strategy Group 2022
Rent Tax Credit	01/01/2023	N	N/A
Landlords Retro-fiting Relief	01/01/2023	N	N/A
Mortgage Interest Relief for Landlords	01/01/2016	N	N/A
Rent a Room Relief	06/04/2001	Y	Internal Review 2016
Pre-letting expenditure in respect of vacant premises	01/01/2018	Y	Internal Review 2022
Allowable rental deductions (Section 97 TCA 1997)	Various dates, first introduced 1967	Y	Internal review 2022
CGT Relief on certain disposals of land or buildings	01/01/2012	N*	N/A
Houses acquired from industrial and provident societies (Stamp)	07/05/1969	Y	Commission of Taxation 2009
Housing Authorities and Affordable Homes Partnership (Stamp)	01/04/2011	Y	Commission of Taxation 2009
Repayment of Stamp Duty in certain circumstances	01/01/2023	N	N/A
Real Estate Investment Trust (REIT) framework	01/01/2013	Y	Tax Strategy Group 2019

*CGT Relief on certain disposals of land or buildings (s604A) only applied for properties acquired during the period 7 December 2011 to 31 December 2014 and then held for a period of seven years. Thereafter, tapered relief applies with relief to CGT granted in the same proportion as the seven years bears to the overall ownership period.

Decisions regarding tax incentives and reliefs, whether in respect of the introduction of new measures or the amendment of existing measures, are normally made in the context of the annual Budget and Finance Bill process. Such decisions must have regard to the sound management of the public finances and my Department's Tax Expenditure Guidelines. Tax reliefs, no matter how worthwhile in themselves, may serve to narrow the tax base and can make general reform of the tax system that much more difficult.

With that said, my Department continues to monitor all aspects of the property market, and I will continue to work with my colleagues in Government to ensure that any further interventions in the housing market are appropriately calibrated, represent the best use of scarce public resources and boost the supply of housing in both the public and private sectors.