Michael McGrath (Cork South Central, Fianna Fail)
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75. To ask the Minister for Finance the annual tax expenditure in each year since 2008 associated with the deduction of interest expense against rental income; and if he will make a statement on the matter. [24306/15]

Michael Noonan (Limerick City, Fine Gael)
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As the Deputy will be aware, landlords may deduct 75% of interest paid on money borrowed to purchase, improve or repair residential property from the gross rent when computing their rental profits for tax purposes on that property. Interest can only be deducted during the period in which the property is let.

The estimated cost associated with the deduction of interest expense against rental income is set out in the following table:

The estimates in the table are based on assuming that tax relief was allowed at the top income tax rate of 41% and the figure provided could, therefore, be regarded as the maximum Exchequer cost in respect of those taxpayers. I am informed that in preparing the 2013 figures, the Revenue Commissioners revised their method of calculating the estimated cost, and, for comparative purposes, the figures for previous years were collated in the same manner.

Interest relief associated with corporate landlords is not captured on the corporate tax CT1 return and is therefore not available.