Parliamentary Question for the Minister for Finance (Michael Noonan TD)
For WRITTEN ANSWER on 18th June 2014
To ask the Minister for Finance if he will consider amending section 97 of the Tax Consolidation Act 1997 to allow local property tax to be deductible against rental income; and if he will make a statement on the matter.
The Thornhill Group, the inter-departmental group chaired by Dr Don Thornhill established to consider the structures and modalities of a property tax, recommended that Local Property Tax (LPT) paid by the owner in respect of a rented property should be deductible for income tax or corporation tax purposes, in a similar manner to commercial rates. The group recognised the considerable pressures on the public finances and the need to bridge the gap between expenditure and revenue, and, for this reason, suggested that consideration be given to phasing in deductibility over a period of years. The group also considered that it was for Government, having regard to the prevailing budgetary situation, to decide on the time span for phasing-in deductibility and on what percentage of LPT to allow as a deduction from gross rents for tax purposes. The Government has agreed in principle to accept this recommendation but has not considered the manner or the timing in which this will happen.