Noel Grealish (Galway West, Independent)
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88. To ask the Minister for Finance if he will introduce a two-tier stamp duty rate for land with a reduced rate applying to active farmers who work the land directly in order to increase output and production; and if he will make a statement on the matter. [51584/21]

Paschal Donohoe (Dublin Central, Fine Gael)
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The current stamp duty rate for non-residential property, which includes agricultural land, is 7.5%.

Farming is first and foremost a business, and indeed section 655 of the Taxes Consolidation Act 1997 states "For the purposes of the Tax Acts, farming shall be treated as the carrying on of a trade or, as the case may be, of part of a trade, and the profits or gains of farming shall be charged to tax under Case I of Schedule D."  It is therefore appropriate for acquisitions of farmland to be subject, in the normal course of events, to the rate of stamp duty applicable to other non-residential property. 

However, in respect of agricultural land, there are a range of generous and targeted reliefs from stamp duty, specific to that type of property, which remove in full or reduce the rate of stamp duty payable on the acquisition of farmland, currently available. These include the young trained farmer stamp duty relief, consanguinity relief and farm consolidation relief.  These reliefs are kept under regular review by my department, and are renewed, updated and added to in line with Government policy and prevailing circumstances, when necessary.   

I have no plans to introduce a special stamp duty rate for active farmers or for agricultural land.

Noel Grealish (Galway West, Independent)
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89. To ask the Minister for Finance if he will introduce a tax incentivisation scheme that facilitates owners and purchasers of town centre commercial buildings convert them into residential properties; and if he will make a statement on the matter. [51585/21]

Paschal Donohoe (Dublin Central, Fine Gael)
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The Housing for All Strategy was developed in consultation with all relevant Government Departments, including my own. The measures set out in the strategy, together with the associated timeframes for delivery, represent the current actions for priority attention in order to increase the supply of residential property.

Having said this, the Deputy will be aware of the Living City Initiative (LCI). The LCI is specifically aimed at the regeneration of the historic inner cities of Dublin, Cork, Galway, Kilkenny, Limerick and Waterford. The scheme provides income or corporation tax relief for qualifying expenditure incurred in refurbishing/converting of qualifying buildings, including for residential purposes, which are located within pre-determined 'Special Regeneration Areas' (SRAs).

There are three types of relief available:

- Owner-occupier residential relief;

- Rented residential relief; and,

- Commercial/Retail relief. 

In 2016 officials from my Department reviewed the measure in consultation with the relevant councils and the then Department of Arts, Heritage, Regional, Rural and Gaeltacht Affairs. On foot of that review, a number of changes were brought forward in Budget 2017 in order to make the initiative more attractive and effective. The principal change extended the residential element of the scheme to landlords, who may now claim the relief by way of accelerated capital allowances for the conversion and refurbishment of property, which was built prior to 1915, where such property is to be used for residential purposes. 

In relation to property-based reliefs more generally, taxation is only one of the policy levers available to the Government through which to boost overall housing supply. In line with my Department's Tax Expenditure Guidelines, consideration of whether a tax measure is the most appropriate policy tool for a given purpose is required. The presumption should be that non-tax measures should be considered before the use of a tax–based measure. The primary responsibility for direct expenditure based policy in this area lies with the Minister for Housing, Local Government and Heritage. 

Finally, Ireland’s past experience with tax incentives in this sector strongly suggests the need for a cautionary stance.  

Ruairi Ó Murchú (Louth, Sinn Fein)
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90. To ask the Minister for Finance if he is satisfied with the way in which the obligations for the new valuation period of 2022 to 2025 for the local property tax was communicated to taxpayers; and if he will make a statement on the matter. [51609/21]

Ruairi Ó Murchú (Louth, Sinn Fein)
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91. To ask the Minister for Finance if additional supports will be made available to older persons who may have had family members avail of the local property tax online options previously and who remain unaware of the obligations for the new valuation period of 2022 to 2025; and if she will make a statement on the matter. [51610/21]

Ruairi Ó Murchú (Louth, Sinn Fein)
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92. To ask the Minister for Finance if taxpayers can defer the obligations for the new valuation period of 2022 to 2025 for the local property tax if they were unaware of the notice; and if he will make a statement on the matter. [51611/21]

Paschal Donohoe (Dublin Central, Fine Gael)
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I propose to take Questions Nos. 90, 91 and 92 together.

Local Property Tax (LPT) is a self-assessed tax.  As such, for the new ‘valuation period’ of 2022 to 2025, it is a matter for residential property owners themselves to determine the market value of their property as at 1 November 2021, calculate the LPT due and submit an LPT Return to Revenue by 7 November 2021.  This is the case regardless of whether a property owner has received a formal notification from Revenue or not.

However, I am advised that Revenue has issued over 1.4 million notices to property owners, setting out what is required to meet Local Property Tax (LPT) obligations for the new ‘valuation period’. This includes approximately 200,000 hard-copy LPT returns to property owners who have not previously availed of the online options and may not be able to avail of, access or use the LPT online services.

In recent weeks, Revenue has commenced a comprehensive LPT media campaign, highlighting the obligations for the new ‘valuation period’ and the assistance available to enable property owners to fulfil their LPT obligations. Revenue spokespeople have taken part in several national and local media interviews and continue to do so. The LPT media campaign will continue over the coming weeks, in the lead up to the 7 November filing date, using both print and digital channels. I am also advised that Revenue has actively engaged with various representative groups to further enhance the public communications campaign.

The Revenue website includes a dedicated page outlining what property owners are required to do for the new ‘valuation period’. When determining the market value of a property for the new ‘valuation period’, property owners can use online sources, such as the Revenue interactive valuation tool, which can be found on the Revenue website.  Other online sources include the Residential Property Price Register or property sales websites such as daft.ie and myhome.ie.

Where property owners cannot use these online facilities to value their properties, sources such as the property pages in newspapers (local and/or national) or checking the information displayed in local auctioneer offices can provide useful guidance.  Property owners are not required to determine an exact valuation of their property, they are only required to value their properties within a ‘valuation band’.  There are 20 valuation bands, the first band is €0 - €200,000, the second band is €200,001 - €262,500 and all other valuation bands are €87,500 wide.

To assist property owners who may be experiencing difficulties meeting their Return filing obligations Revenue is operating an LPT Helpline (01-7383626), which operates from 9.30am to 4.30pm, Monday to Friday. Property owners who have not received a notice from Revenue, or a hard-copy LPT Return and are unable to file online should contact the Helpline for assistance.

As part of the service the Helpline agents will assist with both the Return filing and payment selection processes. In advance of calling the Helpline, property owners will need to have determined the market value of their property so that the Return can be completed. They should also have their PPSN, Property ID and PIN to hand. The Property ID and PIN numbers can be found on any LPT correspondence previously received from Revenue.

In relation to the deferral of any LPT obligations, the LPT regime includes arrangements whereby a person may opt to defer, or partially defer (50%), payment of the tax in certain circumstances. These circumstances include income level, hardship and personal insolvency. They do not include the circumstances the Deputy has referred to in Question No. 51611/21, i.e. where a person was unaware of their obligations for the new ‘valuation period’.  A liable person must make a claim for a payment deferral in writing to Revenue setting out his or her personal circumstances.  Comprehensive information on the deferral arrangements are set out on the Revenue website.

Carol Nolan (Laois-Offaly, Independent)
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93. To ask the Minister for Finance if he will address concerns that the current system of tax individualisation may be discriminatory in practice as it penalises one income married couples by making it necessary for them to pay more tax than two income married couples; and if he will make a statement on the matter. [51624/21]

Carol Nolan (Laois-Offaly, Independent)
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94. To ask the Minister for Finance if he will consider initiating a review of the current system of tax individualisation to ensure that it is not, either directly or indirectly, creating conditions in which it is more difficult for one spouse to remain at home without incurring additional tax liabilities as a one income married couple; and if he will make a statement on the matter. [51625/21]

Paschal Donohoe (Dublin Central, Fine Gael)
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I propose to take Questions Nos. 93 and 94 together.

Background

Prior to 2000, income tax allowed for full joint assessment of married couples.  This meant that the earner in a single income couple could use the combined tax credits and standard rate band available to both individuals – i.e. double the personal tax credit and rate band available to a single earner.  As a result, where the primary earner of a couple had sufficient income to use the available reliefs in full, the second earner faced the marginal rate of tax from the first pound of income earned, which acted as a disincentive to workforce participation for second earners.

A process of moving towards an individualised system of income taxation began in the tax year 2000/2001 with the stated economic objectives of increasing labour force participation and reducing the numbers of workers paying the higher rates of income tax. Many European countries have made similar moves towards a partial or fully individualised income taxation system on the grounds that it improves equality and economic independence for women.

Individualisation was progressed to some extent in later years but never completed. The result is that we now have a hybrid system. Up to €9,000 of the standard-rate band can be transferred between spouses and the married personal tax credit, can be allocated in full to one spouse. Because the income tax system allows married couples to choose whether to be jointly or individually assessed, there can be a difference between the tax liabilities incurred by married couples on the same household income, depending on the method of assessment chosen.

However, in lieu of fully transferable rate bands, a Home Carer Tax Credit may be claimed where one spouse works primarily in the home to care for a dependent person, such as a child. This credit was introduced in the context of the move towards individualisation, in recognition of the choices made by families where one spouse stays at home to care for children or the elderly.

I would make the point that when looking at an issue such as individualisation there are a number of perspectives to consider, for example, on the one hand the points raised by the Deputy and also on the other hand the implications for labour force participation, in particular in respect of female participation in the labour market. There are of course other non-tax factors that also have significant impacts on female workforce participation, including the cost of childcare.

My Department keeps the issue of individualisation of the income tax bands under review.Most recently, the matter was considered in 2019 as part of the Tax Strategy Group deliberations ahead of Budget 2020.However, I have no immediate plans to revisit issue.

Tax Code

The Tax Code sets out the basis on which an individual is assessed to tax and provides for a significant number of credits, reliefs and exemptions, eligibility for which is subject to a wide range of conditions. While the basis of assessment and the credits, reliefs and exemptions available vary depending on the facts and circumstances applicable in each specific case, there is no discrimination in the Tax Code.

Basis of Assessment

Parts 44 and 44A of the Taxes Consolidation Act 1997 (TCA 1997) provide for joint assessment of a married couple or civil partners who live together. Where joint assessment applies, the couple are chargeable to tax on their combined total income. The couple may however apply to be assessed to tax separately, meaning that each individual is taxed as if he or she were not married or in a civil partnership. The couple may choose whichever basis of assessment is most beneficial to them, based on their personal circumstances.

Standard Rate Band

Section 15 of the TCA 1997 provides for the standard rate band, i.e. how much of an individual’s income is liable to tax at 20%. For the 2021 year of assessment, the standard rate band is €35,300 per person. In the case of a married couple or civil partner, each individual is entitled to a standard rate band of €35,300.

If the couple is jointly assessed to tax and either spouse or civil partner has insufficient income to fully utilise his or her own standard rate band, he or she may transfer a portion of their unused rate band to their spouse or civil partner. The maximum portion of the standard rate band which one spouse or civil partner may transfer to the other is €9,000 and any excess unused rate band above this amount cannot be transferred. This is the case irrespective of whether the couple has one or two incomes.

Tax Credits, Reliefs and Exemptions

Part 15 of the TCA 1997 provides for a wide range of tax credits, reliefs and exemptions. Whether or not such credits, reliefs and exemptions are available to an individual or couple depends on the circumstances of the specific case and the eligibility criteria for the individual credit, relief or exemption.

One such credit is the basic personal tax credit, which is provided for in section 461 of the TCA 1997. For the 2021 year of assessment, the basic personal tax credit is valued at €1,650 per person. In the case of a married couple or civil partnership, each spouse or civil partner will be entitled to his or her own basic personal tax credit of €1,650. Again, this is the case irrespective of whether the couple has one or two incomes.

The home carer tax credit of €1,600 is available to married couples or civil partners that are jointly assessed, where one spouse or civil partner stays at home to take care of a dependent person. The carer may earn up to €7,200 per year without affecting the amount of the credit awarded. Where the carer’s income exceeds €7,200, the amount of credit available is reduced by one half of the excess over €7,200, subject to a maximum income limit of €10,400.

Further information on the above may be accessed at the following links:

- Revenue website - www.revenue.ie/en/life-events-and-personal-circumstances/marital-status/marriage-and-civil-partnerships/index.aspx

- Tax and Duty Manual Part 44-01-01 - www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-44/44-01-01.pdf.

- Tax and Duty Manual Part 15-01-29 - www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-15/15-01-29.pdf