Dáil Éireann Debate, Tuesday - 22 September 2015
318. Deputy Shane Ross asked the Minister for Finance his plans to provide relief in the next budget to current homeowners in negative equity who are in receipt of rental income for their sole property, but also pay rental income themselves; and if he will make a statement on the matter. [31010/15]
Amharc ar fhreagraI am conscious of the challenges that individuals continue to face, particularly those who purchased homes at the peak of the property market, despite the improving economic conditions. All those paying USC and/or income tax are benefitting from the tax package announced in the last Budget, and as the Deputy is aware, I have stated my intention to prioritise further reductions in the tax burden faced by those on low and middle incomes in Budget 2016 and subsequent budgets, subject to having the required fiscal space.
With regard to the taxation of rental income, as the taxation of all rental property in the State is dealt with under the same legislation, an attempt to successfully carve out a specific cohort of landlords, such as homeowners in negative equity who rent elsewhere, in a manner that would avoid or minimise leakage might prove problematic. In addition, it would be very difficult to police given that some individuals may seek to artificially qualify for the beneficial treatment proposed.
The creation of a separate category of residential landlords for tax purposes could also create difficulties in the market place. For example, such landlords could (by virtue of the tax saving) generate higher rental profits from the same market rents, thus obtaining an unfair advantage over other landlords of residential property.
Notwithstanding these points, the Deputy's suggestion has been noted and will be considered as part of my deliberations for the forthcoming Budget. Preparations for Budget 2016 and the consequent Finance Bill are ongoing, and it would not be appropriate for me to comment at this time on the specific detail of what changes, if any, are being considered regarding the taxation of rental income or any other tax measure.
