Phil Hogan (Carlow-Kilkenny, Fine Gael)
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Question 380: To ask the Minister for Finance if the €200 charge in respect of a non-principal private residence is tax deductible from rental income; and if he will make a statement on the matter. [34500/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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The position is that a person in receipt of rental income is assessed for income tax on the net amount of the rents received (i.e. the gross rents less allowable expenses incurred in earning those rents). In computing the net amount of the rents received, only those deductions that are specified in section 97(2) of the Taxes Consolidation Act 1997 are allowable. The main deductible expenses are:

· Any rent payable by the landlord in the case of a sub-lease;

· The cost to the landlord of any goods provided or services rendered to a tenant;

· The cost of maintenance, repairs, insurance and management of the property;

· Interest on borrowed money used to purchase, improve or repair the property; and

· Payment of local authority rates in the case of rateable properties used for commercial purposes.

As payment of the new local authority charge for residential properties is not included on the list of allowable deductions, it is not an allowable expense in computing taxable rental income.