Seán Kyne (Galway West, Fine Gael)
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130. To ask the Minister for Finance in the context of the increasing cost of private rented accommodation, if he will consider reviewing the decision to phase out the tax relief scheme by 2017; and if he will make a statement on the matter. [33011/15]

Michael Noonan (Limerick City, Fine Gael)
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I assume the Deputy is referring to tax relief in respect of rent paid, which is available at the standard rate to certain individuals renting private accommodation, which is their sole or main residence. Rent relief was introduced in 1982 to alleviate the cost of private rented accommodation for those aged 65 and over. In subsequent years, the relief was extended to all age groups. The level of rent qualifying for relief depends on an individual's marital status and age.

In its 2009 report, the Commission on Taxation was of the view that in the same way as mortgage interest relief increases the cost of housing; rent relief increases the cost of private rented accommodation and, as a result, recommended that rent relief should be discontinued.  The relief was abolished in Budget 2011, such that it is no longer available to those that commenced renting for the first time from 08 December 2010. Thus there is a considerable cohort of rental tenants that are currently not entitled to rent relief.

In recognition of the impact that immediate withdrawal of rent relief in its entirety would have on those already in receipt of it, a decision was taken to gradually phase out the relief. The amount of rent that can be relieved is reducing on a gradual basis, culminating in the total withdrawal of the relief for the year 2018 and subsequent years. Tax relief at the standard rate continues to be available on a range of rental amounts depending on age and marital status. The current maximum amounts of rent relievable are €2,400/€1,200 per annum for a married couple/individual over 55 years of age and €1,200/€600 for a married couple/individual under 55 years of age.

In 2013, the cost of this relief was €37.9 million, with 153,100 claimants.

I have no plans to review the original decision in this matter, as I believe that any increase or reintroduction of such relief would end up being priced into the rents demanded by landlords, and thus provide no benefit to tenants.