Dáil Éireann Debate, Tuesday - 27 July 2021
370. Deputy Ged Nash asked the Minister for Finance the cost to the Exchequer of claims for each individual item of allowable expenses against rental income based on the most recent data in tabular form; the cost to the Exchequer of claims from non-residential landlords; and if he will make a statement on the matter. [39934/21]
Amharc ar fhreagraI am advised by Revenue that as tax liability is calculated based on the combination of all incomes, reliefs, credits and deductions, it is not possible to provide an exact tax cost for the items outlined. To estimate tentative costs, it is possible to look at the amounts claimed under each item and apply an average marginal rate of tax. The average marginal rate of tax is the average rate across all taxpayer types and is not confined to those with a rental income.
I am advised by Revenue that 2018 represents the latest year for which complete data are available.
The table below sets out the estimated 2018 tax cost of the allowable expenses against rental income, separated into each individual item as declared on tax returns, and separated into residential and non-residential properties.
|
Expense Category |
Residential Properties €m |
Non-residential Properties €m |
|
Repairs |
87 |
15 |
|
Interest |
97 |
47 |
|
Section 23 Relief |
1.7 |
NA |
|
Pre-Letting Expenditure |
0.6 |
NA |
|
Leasing of Farmland |
NA |
28 |
|
Other |
123 |
40 |
