Eoin Ó Broin (Dublin Mid West, Sinn Fein)
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236. To ask the Minister for Finance the tax that hosts of a company (details supplied) are liable for; and the differences between the tax relief measures available to landlords and the tax relief measures available to these hosts. [10250/17]

Michael Noonan (Limerick City, Fine Gael)
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Individuals who provide short-term guest accommodation organised through platforms such as the company in question are liable to income tax, USC and PRSI in the normal manner on the profits arising from the provision of such accommodation.

Where the services are provided on an occasional basis, as distinct from in the course of a trade, the income arising is treated as miscellaneous income and expenses incurred directly in the provision of the accommodation, for example the cost of providing meals, light, heat or laundering costs, would be allowed to be deducted in computing the homeowner's taxable profits from that activity. An individual who provides the services in the course of a trade can avail of the normal trading deductions in computing his or her taxable profits.

In relation to rental income arising to landlords, I am advised that the taxable income is the gross rent less allowable expenses incurred in earning that rent, as specified in section 97(2) of the Taxes Consolidation Act (TCA) 1997. The main deductible expenses are:

- any rent payable by the landlord in the case of a sub-lease;

- the cost to the landlord of any goods provided or services rendered to a tenant;

- the cost of maintenance, repairs, insurance and management of the property;

- the interest on borrowed money used to purchase, improve or repair the property, which, in the case of residential property, is restricted to 80% of the interest and is subject to compliance with Private Residential Tenancies Board registration requirements for all tenancies that existed in relation to the property in the relevant year (full interest deductibility is being restored incrementally by way of annual 5% increases, with full restoration by 2021). The restriction does not apply to certain lettings to tenants in receipt of social housing supports; and

- the payment of local authority rates.

In addition, wear and tear capital allowances are available in respect of the capital expenditure incurred on fixtures and fittings provided by a landlord for the purposes of furnishing rented residential accommodation. These allowances are granted at the rate of 12.5% per annum of the actual cost of the fixtures and fittings over a period of 8 years.

As is the case with profits earned by hosts, rental profits arising to landlords who are individuals are subject to income tax, USC and PRSI in the normal manner.