Eoin Ó Broin (Dublin Mid West, Sinn Fein)
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221. To ask the Minister for Finance the tax treatment of rental income from local authority and approved housing body social tenancies and rental income from local authority, approved housing body and Land Development Agency rental tenancies. [4840/24]

Michael McGrath (Cork South Central, Fianna Fail)
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I understand the Deputy is asking how rental income is treated in the hands of local authorities, approved housing bodies and the Land Development Agency.

I am advised by Revenue that there is no difference in the treatment of income from “social tenancies” and “rental tenancies” – income from both sources is regarded as rental income and taxable under what is known as Case V of Schedule D. The gross rent taxable in a tax year is based on the rent receivable in that year, irrespective of whether that rent has been received. Each rental property must have a separate tax computation in which the allowable rental expenses (as set out in section 97 Taxes Consolidation Act 1997 (TCA)) are deducted from the rental income from the same property to arrive at a profit (where income is greater than expenses) or a loss (where expenses are greater than income) for the property. The total of profits and losses are then aggregated to arrive at the taxpayer’s Case V profits or gains arising in the year.

Local authorities are exempt from income tax, including tax on rental income, by virtue of section 214 TCA.

Revenue is unable to outline the tax position of the other bodies because of its obligation under section 851A TCA to ensure confidentiality of taxpayer information. However, if an approved housing body has the charitable tax exemption, section 207 TCA exempts from tax rental income “vested in trustees for charitable purposes” to the extent that the income is applied solely for charitable purposes.

Michael McGrath (Cork South Central, Fianna Fail)
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I am advised by Revenue that traders are not required to identify the VAT yield generated from the supply of specific goods and services on their VAT returns. Therefore, it is not possible to provide the VAT yield on specific products and / or services using taxpayer information alone. Consequently , a number of third-party data sources are used to compile tentative estimate of the cost of reducing the VAT from 13.5% to 9%, however many of these are in aggregated form and it is not possible to disaggregate e.g. hot take away food and tea/ coffee from these data. The details are set out in the table below.