Dáil Éireann Debate, Tuesday - 14 June 2022
413. Deputy Brendan Griffin asked the Minister for Finance the estimated annual cost of an income disregard similar to the rent a room-a-scheme in respect of income for persons renting out a sole stand-alone property to long-stay tenants; and if he will make a statement on the matter. [30779/22]
Amharc ar fhreagraI am advised by Revenue that in 2019, the latest year for which fully analysed data are currently available, there were 90,150 taxpayer units declaring rental income from a residential property where the total number of residential properties declared was one. The income declared amounted to €1.1 billion.
As indicated to the Deputy in my reply to his question no. 208 dated 2 June 2022, Revenue have advised that, while it is possible to identify the rental income returned, the final tax liability of persons in receipt of such income takes account of a combination of all incomes, reliefs, credits, and deductions available to the taxpayer. Therefore, it is not possible to provide the exact tax liability associated with rental income. Additionally, I am advised by Revenue that the duration of tenancies is not declared on tax returns. As such, it is not possible to provide a costing in relation to the proposed disregard.
At present, I have no plans to introduce a relief along the lines of that outlined by the Deputy. A point to be borne in mind is that under the Rent-a Room scheme, once the income exceeds the ceiling of €14,000, the entire income amount becomes liable to tax.
In addition, and as the Deputy will be aware, proposals for any new tax reliefs must be assessed in accordance with my Department's Tax Expenditure Guidelines. These make clear that it is important that any policy proposal which involves tax expenditures should only occur in limited circumstances. In particular, they provide that a tax-based incentive should only be considered where it would be more efficient than a direct expenditure intervention.
