Michael Healy-Rae (Kerry South, Independent)
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41. To ask the Minister for Finance if he will expand the scope of the home renovation incentive scheme to allow homeowners to avail of the grant if they wish to put in the safety precaution measures to make their houses safe from toxic radon gas. [48686/13]

Michael Noonan (Limerick City, Fine Gael)
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As the Deputy is aware, I announced the Home Renovation Incentive in the recent Budget. This scheme will run from 25 October 2013 to 31 December 2015 and provides for tax relief for homeowners by way of a tax credit at 13.5% of qualifying expenditure incurred on repair, renovation or improvement work carried out on a principal private residence. There is no VAT relief under this scheme. Qualifying expenditure is expenditure subject to the 13.5% VAT rate. The work must cost a minimum of €5,000 (exclusive of VAT) which would attract a credit of €675. Where the cost of the work exceeds €30,000 (exclusive of VAT) a maximum credit of €4,050 will apply. The credit is payable over the two years following the year in which the work is carried out. Works carried out between 25 October 2013 and 31 December 2013 will be considered to have taken place in 2014 for the purposes of awarding the tax credit.

Homeowners must be Local Property Tax compliant in order to qualify under the Incentive, while building contractors must be tax compliant in order to carry out works. The scheme will be administered through Revenue’s online systems. Contractors will be required to inform Revenue in advance of details of works to be carried and will also be required to notify Revenue in relation to any payments received in respect of the works. Homeowners will be able to view the information provided to Revenue by the contractor through the Revenue electronic systems and will also claim the relief through those systems. The installation of radon gas mitigation solutions will be included for the purposes of this scheme.

Finian McGrath (Dublin North Central, Independent)
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42. To ask the Minister for Finance if his attention has been drawn to the fact that Allied Irish Bank has changed the way their staff can purchase annual travel tickets and that the staff are now required to pay an external private company a commission on top of the face value of the tickets; if this commission attracts tax and PRSI relief; his views on this change; and if he will make a statement on the matter. [48708/13]

Michael Noonan (Limerick City, Fine Gael)
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I have been informed by AIB that the bank does not publicly disclose the details of contracts with individual external service providers. AIB utilises the expertise of a number of different third party firms on a case by case basis, subject to an evaluation of the bank's requirements, costs and the relevant external parties. AIB is focused on a significant cost reduction programme and, as part of this process, has policies and procedures in place in respect of the appointment of external third parties. I understand that as part of the cost cutting process, the staff are being charged commission to cover the cost of the administration of the annual travel pass scheme. All external service provider contracts entered into by AIB comply with AIB's policy in relation to engaging external service providers.

I have also been informed by the Revenue Commissioners that a benefit in kind charge under the provisions of Section 118 TCA 1997 arises where an employer incurs expense in the provision of living or other accommodation, entertainment, domestic or other services, or other benefits or facilities of whatever nature. The charge is based on the amount of the expense that is not made good to the employer by the employee.

However, section 118(5A) of the Taxes Consolidation Act 1997 provides that a benefit-in-kind charge shall not apply to the expense incurred by a body corporate in or in connection with the provision for a director or employee of an annual bus, railway or ferry travel pass issued by or on behalf of one or more approved transport providers. Accordingly, the director or employee receives the benefit of the travel pass free of income tax, PRSI and USC.

If the employer incurred any incidental expenses such as commission in the provision of a travel pass, these expenses would also be covered by the BIK exemption.

Where an employer facilitates a salary sacrifice scheme whereby the employer incurs the expense initially in providing the travel pass and the employee forgoes the right to receive part of his or her remuneration to make good that expense to the employer, the amount of the remuneration forgone is exempt from income tax, PRSI and USC in accordance with section 118B(2)(a).