Noel Grealish (Galway West, Independent)
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To ask the Minister for Finance when he proposes to provide for Local Property Tax to be deductible from rental income; if he will clarify his statement that it will be introduced on a phased basis; if primary legislation or Ministerial Order is required, and if it is the former, the legislative vehicle that he will use; if he will also consider extending the expense status for the 2013 tax year only of the other local service charges for the remainder of their existence; and if he will make a statement on the matter. [4171/13]

Michael Noonan (Limerick City, Fine Gael)
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The Thornhill Group, the inter-departmental group, chaired by Dr Don Thornhill, established to consider the structures and modalities of a property tax, recommended that owners and not occupiers be the liable persons for the local property tax. This was also the view of the 2009 Commission on Taxation. The Thornhill Group recommended that the Local Property Tax paid in respect of a rented property should be deductible for income tax or corporation tax purposes, in a similar manner to commercial rates. This is not provided for in the Finance (Local Property Tax) Act 2012; it is the intention of the Government to introduce such a provision on a phased basis but the manner in which this will happen has not been decided. Such change would be provided for by primary legislation.

I am advised by the Revenue Commissioners that the Household Charge and the Non-Principal Private Residence (NPPR) Charge are not allowable deductions from rental income for tax purposes. There will be no Household Charge in 2013 and there are no plans to change this position in respect of the NPPR charge for the 2013 tax year.