Michael McGrath (Cork South Central, Fianna Fail)
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109. To ask the Minister for Finance the revenue that would be raised from reducing the level at which individuals and companies can claim interest repayments against tax for residential rental properties from 75% to 60%; and if he will make a statement on the matter. [32454/14]

Michael Noonan (Limerick City, Fine Gael)
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I am informed by the Revenue Commissioners that a breakdown between rent received from residential and other types of property is not sought or provided in tax returns. However, based on personal Income Tax returns filed by non-PAYE taxpayers for the year 2012, the latest year for which this information is available, and making certain assumptions about the data, it is estimated that the revenue that could be raised from reducing the level at which individuals can claim interest repayments against tax for residential rental properties from 75% to 60% may be in the region of €57 million.

It should be noted that the above estimates do not include returns by some PAYE taxpayers. However, a PAYE taxpayer with non-PAYE income greater than €3,174 is required to complete an Income Tax return Form 11. This return is the source of the figures provided in this reply in respect of individuals.

Rental income of companies is returned as net of interest on borrowings and the figures for interest are not separately distinguished in Corporation Tax returns. There is, therefore, no basis for an estimate of the cost of reducing the tax relief for corporate landlords.

I am advised by the Revenue Commissioners that the estimated cost of interest relief on residential properties is based on assuming that tax relief is allowed at the Income Tax rate of 41% and the figures provided could therefore be regarded as the maximum Exchequer cost in respect of those taxpayers. This figure is subject to adjustment in the event of late returns being filed or where returns already filed are subsequently amended.