Brian Cowen (Laois-Offaly, Fianna Fail)

Section 6 of the Finance Bill implements the budget announcement to improve the level of rent relief and the section amends section 473 of the Taxes Consolidation Act 1997, which grants relief to taxpayers for rent paid in respect of private rented accommodation which is their sole or main residence.

The changes I am introducing will introduce an amount of relief due to all categories as follows: for single persons under 55, the credit goes from €1,800 to €2,000 and for single persons over 55 the credit increases from €3,600 to €4,000; for married and widowed persons under 55, the credit is increased from €3,600 to €4,000; and for married and widowed persons over 55, the credit is increased from €7,200 to €8,000.

The amendment proposed by the Deputy increases the amounts due for single persons only. The tax code generally ensures a married couple should get the same level of relief as two single persons. The cost of the Deputy's proposal would be approximately €28.6 million in a full year. Over the last four budgets I have increased rent relief by 57% in total, which far exceeds increases in the costs of living and in rents over the same period.

I am satisfied the increases in the relief that I have provided for in the Bill will help to reduce the burden of rent for tenants in the private rented sectors, particularly in light of a report showing recent increases in the supply of rental accommodation, which will lead to reduced rent levels.

The changes provided for in this Bill are generous by these standards and I am not in a position to accept the Deputy's amendment.

Rent relief for people over 55 is already higher than mortgage interest relief for non-first time buyers. For those aged under 55, it is two-thirds of the level of mortgage interest relief for non-first time buyers. I am satisfied the 11% increase I announced in the budget was the appropriate measure to take at this time as a larger increase in rent relief could encourage landlords to increase rent.

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