Terence Flanagan (Dublin North East, Independent)
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254. To ask the Minister for Finance in view of recommendations by the Simon Community to alleviate the current homelessness crisis, his plans to introduce more favourable tax treatment for landlords with tenants in receipt of rent supplement; and if he will make a statement on the matter. [29134/15]

Michael Noonan (Limerick City, Fine Gael)
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As with all proposals to change reliefs relating to property, there are a number of considerations which must be taken into account to correctly target the measure and ensure its success. As the Deputy will know, all tax reliefs and incentives are subject to regular review as part of the annual Budget and Finance Bill process. Any decisions taken by the Government in this regard are usually announced on Budget Day.

As the Deputy will also appreciate, I receive numerous requests for the introduction of new tax reliefs and the extension of existing ones. I must also be mindful of the public finances and the many demands on the Exchequer. Tax reliefs, no matter how worthwhile in themselves, reduce the tax base and make general reform of the tax system that much more difficult.

Terence Flanagan (Dublin North East, Independent)
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255. To ask the Minister for Finance regarding the tax exemption threshold for the rent a room relief scheme, his plans to increase the threshold from €10,000 in the upcoming budget, given that the current housing crisis is acutely felt by third level students returning to colleges in September 2015; and if he will make a statement on the matter. [29135/15]

Michael Noonan (Limerick City, Fine Gael)
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Section 216A of the Taxes Consolidation Act 1997 provides for the rent-a-room scheme. This scheme was introduced in Finance Act 2001 as an incentive to encourage individuals to let rooms in their principal private residence in order to bring about an increase in the availability of rental accommodation, particularly for the student sector.

The scheme provides an exemption from Income Tax, PRSI and USC on rent received where a person rents out a room or rooms in his or her principal private residence and the rent received does not exceed €12,000 per year. This was increased from €10,000 in Budget 2015 in order to further encourage individuals to provide rental accommodation in their homes to students and other tenants. 

In order to qualify for the exemption, it is necessary for the residential premises to be situated in the State and occupied by the individual as his or her sole or main residence during the tax year.

The relief only applies to individuals. It does not apply to companies or partnerships. In addition, an individual cannot avail of the relief in respect of payments for accommodation in the family home by a child of the individual. There is no restriction where rent is paid by other family members, for example, nieces or nephews.