Noel Grealish (Galway West, Independent)
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216. To ask the Minister for Finance if there is a discrepancy in the Taxes Consolidation Act 1997 where section 97(2)(b) provides for a deduction in respect of any rate levied by a local authority which is used by the Revenue Commissioners as a reason to disallow the former non-principal private residence charge as a deduction from rental income, whereas section 97(2)(d) states that the cost of maintenance, repairs, insurance and management of the premises is allowed; if any update on the legislation effecting these two sections is planned or in the process of being addressed; and if he will make a statement on the matter. [2643/14]

Michael Noonan (Limerick City, Fine Gael)
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I am advised by the Revenue Commissioners that section 97(2) of the Taxes Consolidation Act 1997 specifies the expenses that a landlord is entitled to deduct from gross rent in computing rental profits for tax purposes.

Section 97(2) is subdivided into paragraphs (a) to (e), each of which deals with different categories of deductible expenditure. As noted by the Deputy, section 97(2)(b) allows for a deduction for any rate levied by a local authority, while section 97(2)(d) allows for a deduction for costs incurred in relation to the maintenance, repair, insurance and management of rental property. The remaining paragraphs, i.e. (a), (c) and (e), set out the additional categories of deductible expenditure.

As each paragraph in section 97(2) deals with a different category of deductible expenditure, I don t consider that there is a discrepancy between paragraphs (b) and (d) of the section.

As regards, section 97(2)(b), I am advised by the Commissioners that, in their view, the non-principal private residence charge is neither a rate levied by a local authority nor a management expense. Accordingly, as it is not otherwise specified in section 97(2), it cannot be treated as a deductible expense.

I have no plans to amend the provisions referred to.