Richard Bruton
Ceist:227 Mr. R. Bruton asked the Minister for Finance the cost of increasing tax credit on rents paid to a private landlord to £400 single, £800 married and to £800 single, £1,600 married. [19547/01]
Written Answers. - Tax Reliefs.
Section 473 of the Taxes Consolidation Act, 1997, provides tax relief, at the standard rate, to individuals for rent paid for private rented accommodation which is their sole or main residence. The level of rent qualifying for relief under section 473 depends on an individual's marital status and age.
For those aged under 55 years of age, the maximum level of rent paid on which income tax can be claimed is £1,000 per annum single and £2,000 per annum widowed-married. This equates to a tax credit of £200 per annum single and £400 per annum widowed-married. For those aged 55 years and over the maximum level of rent paid on which tax relief can be claimed is £2,000 per annum single and £4,000 per annum widowed-married. This equates to a tax credit of £400 per annum single and £800 widowed-married.
I am informed by the Revenue Commissioners that the cost to the Exchequer of doubling these tax credits, estimated by reference to the expected number of claimants in 2001 and assuming claimants have sufficient taxable income for full absorption of the increased tax credits, is £27 million in a full year. This estimate is tentative and is subject to revision.