Dáil Éireann Debate, Thursday - 19 November 2015
59. Deputy Pearse Doherty asked the Minister for Finance the cost to the Exchequer of the proposal to allow 100% mortgage interest relief to some landlords, as per the Government announcement of 10 November 2015. [40952/15]
Amharc ar fhreagraAs the Deputy will be aware, an overall package of measures has been agreed by Government in relation to the rental sector.
As part of that package, an amendment to the tax code is to be introduced that will allow an increase in the deduction available to landlords in respect of interest paid on qualifying loans when calculating rental profits. In general, a landlord is allowed a deduction of 75% of the interest paid on borrowed money used to purchase, improve or repair rented residential premises when calculating rental income. It is proposed that the allowable deduction will be increased to 100% where the property is let to tenants in receipt of social housing supports, subject to certain conditions.
The details of this measure are still being finalised between officials from my Department, the Revenue Commissioners, the Department of the Environment, Community and Local Government and the Department of Social Protection. I intend to bring forward an amendment at Report Stage of the Finance Bill 2015 with the final details of the measure, and at that point I will be in a position to provide an estimate of the cost of the measure.
