Dáil Éireann Debate, Thursday - 8 September 2022
331. Deputy Paul Murphy asked the Minister for Finance the number of landlords who have signed up to a tax relief scheme for rented residential accommodation for third level students under section 50 of the Finance Act 2021; and the way the Revenue Commissioners check properties to ensure they have 20 beds or more, as per the rules of the scheme. [42265/22]
Amharc ar fhreagra355. Deputy Brendan Griffin asked the Minister for Finance his views on a matter raised in correspondence by a person (details supplied) in relation to student accommodation; and if he will make a statement on the matter. [42617/22]
Amharc ar fhreagra356. Deputy Brendan Griffin asked the Minister for Finance if he will introduce penalties on student accommodation providers that availed of tax breaks to construct complexes and changed the use of the complex after construction (details supplied); and if he will make a statement on the matter. [42621/22]
Amharc ar fhreagraI propose to take Questions Nos. 331, 355 and 356 together.
Section 50 of the Finance Act 1999 introduced a scheme for investment in rented residential accommodation for occupation by third level students which is known at the “Student Accommodation Scheme”. Qualifying expenditure incurred on student rental accommodation can be set against the rental income from the property and against other Irish rental income thus reducing the taxable income of the investor. Expenditure qualifying for relief under the Student Accommodation scheme could be incurred up to 31 July 2008, provided that certain conditions were fulfilled. While the period during which qualifying expenditure had to be incurred has ended, section 50 relief may still be available in relation to certain properties depending on when the properties were first let following completion. In 2018, the most recent year for which data is available, 194 investors claimed tax relief under the scheme.
The property must be let under a qualifying lease before relief can be claimed by an investor. A qualifying lease is one which is granted to students of the educational institution that issued a letter of certification in respect of the development in which the property is located. Certain other conditions must also be met for the lease to be a qualifying lease. The property must continue to be let under a qualifying lease for a period of 10 years from the date of first letting under such a lease. However, owners may let their units to non-students for periods outside of the academic year of the certifying educational institution.
The relief is withdrawn if, at any time during the 10-year period following the first letting of the property under a qualifying lease, the property ceases to be a qualifying property. A property ceases to be a qualifying property if there is a breach of the conditions pertaining to the scheme. An example of such a breach would be the letting of the property to non-students during the academic year. The relief would also be withdrawn from the claimant if the property was sold within the 10-year period referred to above. However, the purchaser may be entitled to claim the relief in such circumstances.
Once the 10 year-period from first letting of the property has ended, relief already granted is not withdrawn where the property is sold or leased to non-students during the academic year.
Taxpayers who meet all the conditions of the scheme may make a claim in their self-assessed tax return. Revenue carries out a programme of targeted risk driven compliance interventions on self-assessment tax returns. Claims for the Student Accommodation scheme fall within the scope of this programme.
I am advised by Revenue that, because of taxpayer confidentiality requirements contained in section 851A of the Taxes Consolidation Act 1997, information on a specific taxpayer or a specific property cannot be provided.
Further details of the Student Accommodation scheme are available at www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-10/10-11-04.pdf.
Further statistics in relation to the scheme are available at www.revenue.ie/en/corporate/documents/statistics/tax-expenditures/property-reliefs.pdf.
