Paul Murphy (Dublin South West, Socialist Party)
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36. To ask the Minister for Finance if his Department has estimated the cost to the Exchequer arising from changes to the recently announced reforms to the treatment of tax relief for landlords taking rent supplement tenants. [40385/15]

Michael Noonan (Limerick City, Fine Gael)
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As the Deputy will be aware, an overall package of measures has been agreed by Government in relation to the rental sector.

As part of that package, an amendment to the tax code is to be introduced that will allow an increase in the deduction available to landlords in respect of interest paid on qualifying loans when calculating rental profits.  As you are aware, in general a landlord is allowed a deduction of 75% of the interest paid on borrowed money used to purchase, improve or repair rented residential premises when calculating rental income.  It is proposed that the allowable deduction will be increased to 100% where the landlords commits to making the property available to tenants in receipt of social housing supports for a three-year period, subject to certain conditions.

The details of this measure are still being finalised between officials from my Department, the Revenue Commissioners and the Department of Environment, Community and Local Government.  I intend to bring forward the measure as an amendment to the Finance Bill at Report Stage, at which point I will be in a postion to provide an estimate of its cost.