Bernard Durkan (Kildare North, Fine Gael)
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54. To ask the Minister for Finance if tax liabilities accruing from the renting out of a family home in the case of a person (details supplied) can be offset against the rent paid for an alternative family home during the same period; and if he will make a statement on the matter. [52338/17]

Paschal Donohoe (Dublin Central, Fine Gael)
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There is no legislative basis on which the offset proposed by the Deputy could be allowed. The Deputy will be aware that landlords are liable to tax on their net rental profit after deduction of allowable letting expenses, and not on the gross rental income received.  As regards properties that are rented, currently a landlord may be allowed a deduction of 80% of the interest paid on borrowed money used to purchase, improve or repair rented premises when calculating rental income. From 1 January 2018, this will increase to 85% and there will be further annual incremental increases of 5% until full 100% deductibility is restored from 2021. These increases were provided for in last year’s Finance Bill.

There are also a number of other allowances and deductions available to reduce the tax on rental income paid. These include, for example, the cost to the landlord of any goods provided or services rendered to a tenant and the cost of maintenance, repairs, insurance and management of the property. The Office of the Revenue Commissioners has published information on its website on the income tax treatment of rental income. It sets out the amount of rental income to be taken into account for income tax purposes and provides a comprehensive list of expenditure items that are allowable for deduction in computing rental income for tax purposes. This information is available at:

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The Deputy may also be aware that in Finance Act 2015, a new relief was introduced which allows a full 100% mortgage interest deduction where a 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. Further information on this relief is available in section 97 of the Revenue Commissioners – Notes for Guidance – Taxes Consolidation Act 1997 – Finance Act 2016 Edition – Part 4 Principal Provisions Relating to the Schedule D charge, which is available at:

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The taxation of all rental property in the State is dealt with under the same legislation, and an attempt to carve out a cohort of landlords as described by the Deputy would prove problematic.  There are many reasons why individuals might choose, or feel obliged, to rent a property while putting their own mortgaged property out to rent, such as relocation for work purposes or changed family circumstances, and all are treated equally by the tax system.  The provision of additional tax deductions to one sub-set of landlords could create difficulties in the rental marketplace as a result of the advantage obtained over other landlords of similar residential property.

The Deputy may be aware that a Working Group which was set up to examine and report on the tax treatment of landlords (or rental accommodation providers) recently published its report and it is available on the Budget 2018 website at the following link:

The Group was chaired by the Department of Finance and its membership included the Department of Housing, Planning and Local Government (DHPLG), Revenue and the Residential Tenancies Board (RTB).

I am conscious of the challenges that individuals continue to face, despite the improving economic conditions. However, I would also note that the changes to the income tax system included in the last four Budgets mean that most individuals have seen reductions in their income tax bills for four successive years, where incomes are equal.