Robert Dowds (Dublin Mid West, Labour)
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143. To ask the Minister for Finance the financial supports available for persons who are in negative equity who need to let their mortgaged homes and rent alternative accommodation themselves in order to provide for a growing family; and if he will make a statement on the matter. [49635/14]

Michael Noonan (Limerick City, Fine Gael)
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I am informed by the Revenue Commissioners that the taxable amount of rental income from the letting of property (whether in negative equity or otherwise) is the gross rent from the property less allowable expenses incurred in earning that rent, as specified in section 97(2) of the Taxes Consolidation Act 1997. The main deductible expenses are:

- any rent payable by the landlord in the case of a sub-lease;

- the cost to the landlord of any goods provided or services rendered to a tenant;

- the cost of maintenance, repairs, insurance and management of the property;

- the interest on borrowed money used to purchase, improve or repair the property (which, in the case of residential property, is restricted to 75% of the interest and is subject to compliance with PRTB registration requirements for all tenancies that existed in relation to the property in the relevant year); and

- payment of local authority rates.

In addition, wear and tear capital allowances are available in respect of the capital expenditure incurred on fixtures and fittings provided by a landlord for the purposes of furnishing rented residential accommodation. These allowances are granted at the rate of 12.5% per annum of the actual cost of the fixtures and fittings over a period of 8 years.

The effect of the deduction of allowable expenses from gross rent means that the amount of taxable rental income will often be substantially lower than the gross rent, and could, depending on individual circumstances, be nil.

I have no plans at the moment to change the tax treatment of rental income for tax purposes, however, as a matter of course all such taxation measures and reliefs are considered in the context of the annual budgetary process.