Darragh O'Brien (Dublin Fingal, Fianna Fail)
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104. To ask the Minister for Finance the estimated first and full year cost of a deduction for pre-letting expenses incurred by a landlord in bringing a property which has been vacant for a minimum period of one year to the rental market. [27444/18]

Paschal Donohoe (Dublin Central, Fine Gael)
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In Budget 2018 I introduced a new deduction for pre-letting expenses of a revenue nature incurred on a property that has been vacant for a period of 12 months or more. I introduced this measure in order to encourage owners of vacant residential property to bring such properties into the rental market.

A cap on allowable expenses of €5,000 per property applies, and the relief is subject to clawback if the property is withdrawn from the rental market within 4 years.  The relief is available for qualifying expenses incurred up to the end of 2021. At the time of Budget 2018, this measure was projected to cost €1.5 million in 2018 and €3 million in a full year. 

I have been informed by Revenue, that as tax returns for 2018 are not due to be filed until after the year’s end, it is not possible at present to comment on the current uptake of the scheme or update the projected cost estimates.

Darragh O'Brien (Dublin Fingal, Fianna Fail)
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105. To ask the Minister for Finance the estimated first and full year cost of a tax deduction against rental income for an element of the capital cost of a property in the initial years of ownership of a residential rental unit with a corresponding reduction in the base cost of the property on a future disposal for capital gains tax purposes based on 4% of the capital cost per annum for the first five years. [27445/18]

Paschal Donohoe (Dublin Central, Fine Gael)
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The Report of the Working Group on the Tax and Fiscal Treatment of Rental Accommodation Providers (2017) identified the measure suggested by the deputy as a possible medium-term option. The report does not cost the measure but notes that three factors relevant for the costing would be:

- the reduction in current income tax revenues;

- in the longer term, the claw-back of the deduction as CGT rather than income tax, USC and PRSI; and

- the potential for loss to the Exchequer if the property is not subject to CGT in future.

I am advised by Revenue that to cost the measure, certain further information would need to be available, including the number of eligible landlords and estimates for the relevant element of the capital costs. In the absence of this information it is not possible for Revenue to identify a cost.