Brian Cowen (Laois-Offaly, Fianna Fail)

We are dealing with amendments Nos. 14 and 16 together. These amendments propose to insert a new section 4 into the Bill and to make it a general condition of claiming tax relief on rental income that the person involved provides evidence to the Revenue Commissioners that he or she has registered as a landlord where this is required by law. Part 7 of the Residential Tenancies Act 2004 contains requirements for landlords regarding registration of tenancies. These requirements relate to residential tenancies of dwellings, to which I assume the amendment relates.

Apart from tax relief being available for normal letting expenses, it is also available for expenditure on the construction, refurbishment, conversion or purchase of a house for rented residential purposes in areas designated under one of the tax incentive schemes, such as the urban or rural renewal schemes. In addition tax relief is also available for interest arising on borrowings used for the purchase, improvement or repair of rented residential accommodation.

I said on Committee Stage when this amendment was first proposed that I would consider this matter between then and Report Stage. My officials and officials from the Revenue Commissioners have since met officials from the Department of the Environment, Heritage and Local Government to discuss the matter. The Residential Tenancies Act 2004 provided for the establishment of the Private Residential Tenancies Board as an independent body with a range of specific statutory functions, including responsibility for the administration of tenancy registration and dispute resolution. I understand the board is processing a large volume of applications for registration from which a statutory tenancy register will be compiled. Until this work is completed, it will not be possible for the board to provide comprehensive data. When the statutory tenancy register is completed, it will enable the board to provide a range of enhanced information relating to the private rented sector.

Various issues on linking registration to eligibility for tax incentives have been raised previously. However, it has not been possible to bring forward measures for Report Stage to deal comprehensively with these intricacies. My officials and officials from the Revenue Commissioners will continue to discuss this matter with the Department of the Environment, Heritage and Local Government and the Private Residential Tenancies Board to examine the possibilities for proposals in this area for future budgetary consideration.

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