Peadar Tóibín (Meath West, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

106. To ask the Minister for Finance the revenue that would be raised for the Exchequer by reducing mortgage interest deductions against rent for landlords from 75% to 41%; 40%; 35%; and 30%. [25281/15]

Michael Noonan (Limerick City, Fine Gael)
Link to this: Individually | In context | Oireachtas source

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 2013, 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 41%, 40%, 35% and 30% could be in the order of €108 million, €111 million, €127 million and €142 million respectively.

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 40% 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.

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.