Dáil Éireann Debate, Tuesday - 22 March 2016
55. Deputy Clare Daly asked the Minister for Finance the options available to persons who pay large yearly management fees on their properties but who get no tax relief, given that persons who rent their homes get tax relief; and if he will make a statement on the matter. [4735/16]
Amharc ar fhreagraThe Deputy will be aware that management fees in managed estates are used to fund costs such as repairs and maintenance of common areas, refuse collection and insurance. These are costs which homeowners in other households have to fund themselves for their own properties, for which they do not receive tax relief. Similarly, owner-occupiers in managed estates cannot claim tax relief for management fees. Such properties would have been purchased by their owners in the knowledge that they would be taking on commitments to partake in, and to fund, the management of the estate.
With regard to rental properties, the Deputy will be aware that landlords are liable to tax on their net rental profit after deduction of allowable letting expenses. The Office of the Revenue Commissioners has published a guide to the income tax treatment of rental income, available at http://www.revenue.ie/en/tax/it/leaflets/it70.html, which sets out the treatment of rental income for income tax purposes and provides a comprehensive list of expenditure items that are allowable for deduction in computing taxable rental profits. Allowable letting expenses include expenses incurred on the upkeep and maintenance of a property. In the case of rental properties in managed estates, management fees are generally collected to fund the upkeep and maintenance of the buildings and grounds of a managed estate and, as such, are allowable letting expenses.
