DARRAGH O'BRIEN TD
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Parliamentary Questions

Cost of allowing a deduction against rental income for the capital cost of the property in the initial years of ownership of a rental unit

17/12/2019

 

QUESTION

To ask the Minister for Finance the first and full-year cost of allowing a deduction against rental income for the capital cost of the property in the initial years of ownership of a rental unit; and the corresponding reduction in the base cost of the property on a future disposal.
REPLY



The Report of the Working Group on the Tax and Fiscal Treatment of Rental Accommodation Providers (published by my Department on Budget Day 2017) identified the measure suggested by the Deputy as a possible medium-term option. The report does not cost the measure but notes that three factors relevant for the costing would be:
  • the reduction in current income tax revenues;
  • in the longer term, the claw-back of the deduction as CGT rather than income tax, USC and PRSI; and
  • the potential for loss to the Exchequer if the property is not subject to CGT in future.

I am advised by Revenue that as capital allowances in respect of the purchase of a property are not allowable, tax returns do not capture information in relation to the purchase price of the properties for which rental income is declared. As this information is not available, it is not possible to estimate the tax cost associated with the measure outlined by the Deputy.





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Darragh O'Brien TD


Address

Darragh O'Brien TD
Leinster House
Kildare Street
Dublin 2

Telephone

T:  01-6183802

Email

At present, and as a result of the COVID-19 pandemic, I am not holding my regular meetings across our towns and villages in North County Dublin. However, both I and my office are happy to speak to you and assist you with any issues you may have.

For all housing, planning or heritage related queries please don’t hesitate to contact:
Email: minister@housing.gov.ie
Phone: 01-8882000
Postal address: Department of Housing, Local Government and Heritage, Custom House, Dublin 1, D01 W6X0
 
For all constituency related queries please don’t hesitate to contact:
Email: Darragh.obrien@oireachtas.ie
Phone: 01-6183802
Postal address: Dáil Éireann, Leinster House, Kildare Street, Dublin 2.
 



  • HOME
  • About Darragh
  • News
  • Parliamentary Questions
    • Housing, Planning & Local Government PQ's
    • School PQs
    • Foreign Affairs PQS
    • Oral Questions
  • Newsletters
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  • DATA Protection Statement