Terence Flanagan
Ceist:193. Deputy Terence Flanagan asked the Minister for Finance to deal with a matter (details supplied) regarding interest paid on mortgages; and if he will make a statement on the matter. [46555/15]
Amharc ar fhreagraWednesday, 13 January 2016
Ceisteanna (193)
Freagraí scríofa
This question relates to the restriction applying to residential lettings, whereby the deductibility of interest in computing taxable rental income from residential property (insofar as it would otherwise be allowable) is limited to 75% of such interest. The restriction was introduced in the April 2009 supplementary budget in respect of all residential lettings as part of an urgent revenue-raising package aimed at stabilising the public finances.
I am informed by the Revenue Commissioners that for the year 2013, the latest year for which relevant information is available, and making certain assumptions about the data available to Revenue, it is estimated that the cost of increasing the deduction which individuals can take when calculating rental income for tax purposes from 75% to 100% of interest paid, could be in the order of €80 million. This is based on the assumption that tax relief is allowed at the top income tax rate of 40% and the figures provided could be regarded as the maximum Exchequer cost.
In the recent Finance Act I provided for a full 100% interest deduction where the landlord undertakes, for a period of at least three years, to provide accommodation to tenants in receipt of social housing supports and registers such undertakings with the Private Residential Tenancies Board within certain time limits.