Peter Mathews (Dublin South, Fine Gael)
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Question 113: To ask the Minister for Finance his plans to reduce the amount of mortgage interest on an investment property that can be written off against tax; and if he will make a statement on the matter. [11427/11]

Michael Noonan (Limerick City, Fine Gael)
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I am informed by the Revenue Commissioners that in so far as an investment property is generally understood to be a property from which the owner seeks to derive profits through lettings, a deduction is allowed (subject to certain conditions) for interest on borrowed money employed in the purchase, improvement or repair of the premises concerned. However, for interest accruing on or after 7 April 2009, the deduction, in the case of residential investment property, is restricted to 75% of the interest otherwise allowable.

As the Deputy will be aware there is no specific proposal in the Programme for Government to decrease the amount of interest on borrowings that can be offset against rental income for tax purposes, however, as a matter of course taxation measures and reliefs are reviewed on a regular basis and considered in the context of ongoing budgetary and economic policy.