Michael McGrath (Cork South Central, Fianna Fail)
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164. To ask the Minister for Finance the cost of restoring 100% mortgage interest relief for all landlords; and if he will make a statement on the matter. [43969/15]

Michael McGrath (Cork South Central, Fianna Fail)
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165. To ask the Minister for Finance the cost of providing 100% mortgage interest relief for all new landlords; and if he will make a statement on the matter. [43970/15]

Michael Noonan (Limerick City, Fine Gael)
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I propose to take Questions Nos. 164 and 165 together.

In relation to the cost of restoring 100% mortgage interest relief for all landlords, 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 the information that is available and making certain assumptions, it is estimated that the cost to the Exchequer of increasing the level at which individuals can claim interest repayments against tax for residential rental properties from 75% to 100%, could be in the order of €80 million.

This estimate is premised on the assumption 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.

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 increasing the tax relief for corporate landlords.

The restriction was introduced in the April 2009 supplementary budget in respect of all residential lettings as part of an urgent revenue-raising package aimed at stabilising the public finances. As the Deputy will be aware, in the current Finance Bill I am providing for a full 100% interest deduction where the landlord undertakes, for a period of at least three years, to provide accommodation to tenants in receipt of social housing supports and registers such undertakings with the Private Residential Tenancies Board within certain time limits.

With regard to the cost of providing 100% mortgage relief to all new landlords, I am informed by the Revenue Commissioners that they have no information on either the likely number of new landlords or the level of mortgage interest relief they might claim. There is therefore no basis upon which to estimate the cost of the measure proposed by the Deputy.