Written Answers Nos. 113-132
113. Deputy Ged Nash asked the Minister for Finance further to his reply to Parliamentary Question No. 133 of 26 September 2024, the number of persons it is anticipated that stand to benefit from the changes announced in Budget 2025 in regard to the capital gains tax retirement relief regime, based on the assessment contained in his reply to the referenced Parliamentary Question; and if he will make a statement on the matter. [40248/24]
View answerSection 599 of the Taxes Consolidation Act 1997 (‘TCA 1997’) provides for relief from Capital Gains Tax (‘CGT’) on the disposal of qualifying assets by individuals aged 55 years or more to a child, as defined in the section.
Following the enactment of Finance (No.2) Act 2023, where an individual aged 55 to 69 years, inclusive, transfers qualifying assets to a child on or after 1 January 2025, a €10 million lifetime limit applies to the value of the qualifying assets which may be relieved from CGT in full under section 599 TCA 1997.
In delivering Budget 2025 on 1 October last, I confirmed that, as part of Finance Bill 2024, should a CGT liability arise on the transfer, on or after 1 January 2025, of qualifying assets, the value of which exceeds this lifetime limit, such CGT liability may be deferred by the individual making the disposal on the basis that the child to whom the qualifying assets transfer continues to hold the qualifying assets for a period of 12 years. Should the child dispose of the qualifying assets prior to the end of this retention period, the child becomes liable for the individual’s deferred CGT liability, as well as any CGT liability which arises in respect of any chargeable gain accruing to the child on their disposal of the assets. Should the child retain ownership of the assets for the whole of the retention period, they may claim an abatement of the deferred CGT on the expiry of the retention period.
As the proposed deferral and potential abatement of CGT liabilities arising in the circumstances outlined above will only apply to transfers of qualifying assets which take place on or after 1 January 2025, the number of persons who may, in the future, benefit from the proposed amendment cannot be quantified based on current data.
114. Deputy Jim O'Callaghan asked the Minister for Finance the estimated first and full-year cost of increasing the help to buy maximum grant by increments of €5,000 up to €50,000, in tabular form. [40255/24]
View answer115. Deputy Jim O'Callaghan asked the Minister for Finance the estimated first and full-year cost of increasing the help to buy home cap from €500,000 to €600,000 in conjunction with a maximum grant amount increase to €50,000. [40256/24]
View answer116. Deputy Jim O'Callaghan asked the Minister for Finance the estimated first- and full-year cost of expanding the eligible criteria for the assessment of the help to buy grant to include rent paid in the previous three years. [40257/24]
View answerI propose to take Questions Nos. 114, 115 and 116 together.
In relation to the Deputy's question on increasing the maximum relief available under Help to Buy by increments of €5,000 up to €50,000, I am advised by Revenue that there is no information available to it to provide an estimate of this proposal, as the tax paid by potential future applicants is unknown.
In relation to the question of increasing the cap, I am advised by Revenue that there is no information available to it to provide an estimate of this proposal, as house values above the €500,000 threshold are not currently eligible to claim Help to Buy and consequently Revenue has no information on potential applicants falling into the €500,000 to €600,000 range identified in this proposal.
In relation to the question regarding rent already paid for inclusion of receiving the relief, I am advised by Revenue that, as rent paid by actual or potential Help to Buy applicants is not collected on its systems, there is no data on Revenue records from which to estimate the potential cost of this proposal.
117. Deputy Jim O'Callaghan asked the Minister for Finance the estimated first- and full-year revenue raised by an increase of the vacant property tax rate by increments of one additional multiple of the Local Property Tax, in tabular form. [40258/24]
View answerThe Vacant Homes Tax (VHT) is a self-assessed tax, and the number of properties in scope and the amount of tax payable, depend on the returns submitted by property owners, the number of properties declared as liable, and the number of property owners entitled to claim available exemptions from the tax.
The first chargeable period for VHT commenced on 1 November 2022 and ended on 31 October 2023. VHT for the first chargeable period was charged at a rate equal to three times the property’s existing base Local Property Tax (LPT) charge and was payable in addition to LPT. As of July 2024, approximately 6,000 properties have been declared as vacant for the first chargeable period, with exemptions claimed in respect of approximately 2,500 of these properties. Approximately 3,500 properties have a liability to VHT, amounting to €2 million.
The second chargeable period commenced on 1 November 2023 and will end on 31 October 2024. VHT for this period will be charged at a rate of five times the property’s existing base LPT charge. Returns in respect of this chargeable period will be due on 7 November 2024, with the associated tax due for payment on 1 January 2025. The yield for the second chargeable period will depend on the number of properties declared as liable for the tax.
As the Deputy will be aware, in Budget 2025 I announced an increase in the rate at which the VHT is levied from five times to seven times the base LPT charge. This will apply from the next chargeable period, commencing on 1 November 2024.
I am advised by Revenue that a tentative estimate of the additional yield raised by an increase in the VHT rate, from 7 times the base LPT charge to 8 times the LPT charge, would be in the region of €0.7 million. The same estimate would apply to each further increment to the multiplier to the LPT rate.
It should be noted that VHT returns reflect the position at a particular point in time, and the estimated additional yield does not take into account of any behavioural change.
118. Deputy Jim O'Callaghan asked the Minister for Finance the estimated first- and full-year cost of eliminating capital gains tax on landlord selling units to their tenants.. [40259/24]
View answerI am advised by Revenue that, as landlord and tenant status is not captured on the tax return in respect of vendors and purchasers, there is no data from which Revenue can estimate the cost of this proposal.
119. Deputy Jim O'Callaghan asked the Minister for Finance to provide the first- and full-year cost of increasing the rent tax credit by €100 increments, in tabular form. [40260/24]
View answerI am advised by Revenue that as the amount of rent tax credit available to a taxpayer is dependent on the rent paid, it is not possible to provide a precise estimate for each €100 increase in the value of the credit.
Revenue has provided the data in the table below setting out estimated additional costs associated with a range of potential increases in the value of the credit.
It should be noted that these costs are calculated on a post-Budget 2025 basis.
|
Proposed Credit Value in 2025 |
Estimated Additional Cost €m |
|
€1,100/€2,200 |
20 |
|
€1,200/€2,400 |
45 |
|
€1,300/€2,600 |
60 |
|
€1,400/€2,800 |
80 |
|
€1,500/€3,000 |
95 |
Note: figures are rounded to the nearest €5m.
120. Deputy Jim O'Callaghan asked the Minister for Finance the estimated first- and full-year cost of abolishing stamp duty for first time buyers. [40261/24]
View answerI am advised by Revenue that, based on stamp duty returns for 2023, the latest year for which fully analysed data are available, the estimated cost of abolishing stamp duty for first-time buyers is in the order of €55 million.
This estimate is arrived at by taking the stamp duty returns for residential property purchases made by persons identifying themselves as first-time buyers, and taking the associated tax liability as the potential cost of exempting them from the duty.
The Deputy may wish to note that this costing does not take into account the changes announced in Budget 2025 in respect of a new Stamp Duty rate on residential property valued above €1.5 million.
121. Deputy Jim O'Callaghan asked the Minister for Finance the estimated cost of extending the residential premises rental income relief to 2030. [40262/24]
View answerThe Residential Premises Rental Income Relief (RPRIR) provides relief, at the standard rate, on a portion of a landlord’s residential rental income. The relief is €3,000 in the tax year 2024, €4,000 in the tax year 2025 and €5,000 in the tax years 2026 and 2027, which is equivalent to a tax credit of up to €600, €800 and €1,000 respectively.
At the time of its introduction, the estimated cost of the RPRIR for 2025 was €111 million, for 2026 it was €143 million and for 2027 it was €160 million. On that basis, the estimated cost of extending the relief to 2030, at the €1,000 rate, is €160 million for each additional year, 2028 to 2030.
Further information on RPRIR is available at the following link:
www.revenue.ie/en/personal-tax-credits-reliefs-and-exemptions/land-and-property/rprir/index.aspx.
122. Deputy Jim O'Callaghan asked the Minister for Finance the estimated cost of extending the eligible period for expenses incurred under the tax deduction for expenditure on retrofitting for landlords measure to 2030. [40263/24]
View answerSection 97B of the Taxes Consolidation Act 1997 which provides a deduction from rental income for expenses incurred by landlords in retrofitting residential rental properties. The deduction was introduced in Finance Bill 2022 to incentivise retrofitting of residential rental properties and to encourage landlords to retain these properties in the rental market.
The estimated cost of the scheme in 2024 is €20.8m. As such, it is estimated the cost of extending the relief to 2030 would be of the order of €20.8 million for each additional year it applies.
123. Deputy Jim O'Callaghan asked the Minister for Finance the estimated cost of extending pre-letting expenses tax deductions to 2030. [40264/24]
View answerSection 97A Taxes Consolidation Act 1997, introduced in Finance Act 2017, allows a deduction (capped at €10,000 per premises) from rental income for certain pre-letting expenditure on properties which have been vacant for at least six months and are subsequently let. To qualify, the expenditure must be incurred in the twelve months immediately prior to the letting.
Finance Act 2022 increased the maximum allowable deduction from €5,000 to €10,000 and decreased the vacancy period from 12 months to six months, in accordance with a commitment in the Housing for All Action Plan.
The purpose of the measure is to encourage owners of vacant residential property to bring that property into the rental market, for a minimum of four years. The expenditure must be such as would be allowed against rental income as if it had been incurred during the period of letting.
The estimated cost for this relief in 2025 is €2 million. As such, it is estimated the cost of extending the relief to 2030 would be of the order of €2 million for each additional year in respect of which it applies.
124. Deputy Jim O'Callaghan asked the Minister for Finance the estimated first- and full-year cost of applying a 5% to 15% VAT rate at 1% increments under the supply and construction of new social and affordable housing, as part of a social policy as per the EU VAT directive, in tabular form. [40265/24]
View answerWhile most Member states apply the standard rate to construction services, Ireland historically has applied a 13.5% reduced rate of VAT to all construction services (residential and non –residential) under a derogation from the EU VAT Directive. This derogation however has significant restrictions including that the rate cannot be reduced below 12%.
Since April 2022, under Annex III of the VAT Directive, it is now possible for Ireland to apply a reduced rate of VAT e.g. a 9% rate to the supply and construction of housing, as part of a social policy and to the repair and renovation of residential housing (non-residential construction is not within scope of this reduced rate).
I am advised by Revenue that traders are not required to identify the VAT yield generated from the supply of specific goods or services on their periodic VAT returns. Therefore, Revenue does not have the necessary data using information provided on tax returns to provide an accurate estimate of the VAT yield arising from social and affordable housing construction.
However, using third-party sources, for each 1% change to the VAT rate the full year cost is estimated at €55m. First year estimates are not available for this proposal but in general, because VAT is collected in the VAT period following the payment, the first year cost will be five sixths of the total year cost. As an example, the full year cost of moving the VAT rate for social housing from the 13.5% VAT rate to the 9% VAT rate is estimated to be €247.5m and the first year cost is estimated to be €206.25m.
It should be noted that the VAT treatment of goods and services is subject to EU VAT law, with which Irish VAT law must comply. The Directive only allows Member States to apply two reduced rates of VAT between 5% and 15%. Ireland currently applies a 13.5% reduced VAT rate and 9% reduced VAT rate. The estimate provided does not reflect the cost of moving other items currently applying the 13.5% and 9% VAT rate to other rates.
125. Deputy Jim O'Callaghan asked the Minister for Finance the estimated revenue from the residential zoned land tax per annum. [40266/24]
View answerThe Residential Zoned Land Tax (RZLT) is a new tax introduced in Finance Act 2021 which seeks to increase housing supply by encouraging the activation of development on lands which are suitably zoned and appropriately serviced. It aims to bring those lands which have benefitted from investment in services and are capable of being developed forward for housing, rather than to raise revenue.
The tax measure is a key pillar of the Government’s response to address the urgent need to increase housing supply in suitable locations. However, it is important that affected landowners have sufficient opportunity to engage with the mapping process and that a fair and transparent process is applied when local authorities consider what land should be placed on the RZLT maps. Therefore, as part of Budget 2024, it was decided to extend the initial liability date of the tax by one year, from February 2024 to February 2025.
The purpose of this deferral was to allow for the annual mapping cycle to complete and afford landowners another opportunity to make submissions if their land is included on the maps prepared by local authorities.
In relation to the Deputy's question regarding the estimated revenue from the residential zoned land tax per annum, it is not possible to estimate a projected revenue at this time.
Revised final maps will be published by the local authorities on 31 January 2025. Once landowners register for the liability in May 2025, I will be in a better position to provide an estimate of the projected revenue from the RZLT per annum.
126. Deputy Marc Ó Cathasaigh asked the Minister for Public Expenditure, National Development Plan Delivery and Reform to provide a response to Parliamentary Question Nos. 98 and 99 of 20 June 2024 with regard to the OPW preferred contractors list, following two granted requests for additional time to reply; and if he will make a statement on the matter. [39624/24]
View answerI regret the delay in responding to the Deputy’s questions. The information requested is being finalised and a direct response will issue to the Deputy shortly.
127. Deputy Paul Murphy asked the Minister for Public Expenditure, National Development Plan Delivery and Reform further to Parliamentary Question No. 439 of 9 September 2024, if he will reconsider the response issued, given the further information supplied (details supplied). [39631/24]
View answerAdditional time is needed to collate the information requested by the Deputy. OPW will respond directly to the Deputy on this matter.
128. Deputy Catherine Murphy asked the Minister for Public Expenditure, National Development Plan Delivery and Reform the number of candidates that are currently on a panel for principal officer grade within the Civil Service from the most recent principal officer recruitment campaign. [39694/24]
View answerI am informed by Public Appointments Service (PAS) that they panelled 159 candidates in total from the most recent principal officer grade competition. There are currently 38 people remaining on the panel.
129. Deputy Carol Nolan asked the Minister for Public Expenditure, National Development Plan Delivery and Reform the details of contracts of €25,000 or more that have been awarded by the Office of Public Works that were non-compliant with procurement guidelines in each year from 2017 to date in 2024; and if he will make a statement on the matter. [39789/24]
View answerAdditional time is needed to collate the information requested by the Deputy. OPW will respond directly to the Deputy on this matter.
130. Deputy Patrick Costello asked the Minister for Public Expenditure, National Development Plan Delivery and Reform if he will publish the Office of Public Works-commissioned report from September 2018 to investigate solutions to the issues of gull control at the Jamestown Road site; and if he will make a statement on the matter. [39792/24]
View answerThe Office of Public Works, in compliance with the Irish Wildlife Act 1976 and the Irish Wildlife (Amendment) Act 2000, is monitoring the situation in relation to gull control at the OPW Jamestown Road premises.
In relation to the 2018 Report referenced, I will request my officials to forward this directly to the Deputy.
131. Deputy David Stanton asked the Minister for Public Expenditure, National Development Plan Delivery and Reform the reason the Water Rock area near Midleton, County Cork was not included in the proposed Midleton flood relief scheme, given that the area has experienced severe flooding in recent times; his plans, if any, to address this situation; and if he will make a statement on the matter. [39889/24]
View answerCork County Council is leading the delivery of the Midleton Flood Relief Scheme Midleton has proven to be one of the most complex schemes with flood risks from four sources; fluvial, tidal, groundwater and pluvial. The preferred option is now identified and, following Storm Babet, an assessment of the scheme design is complete, so that the community can be confident that the designed scheme will meet the standard of protection required by the insurance industry. Work is now ongoing on the environmental assessments that will support planning consent application for the scheme to be made by Cork County Council.
The options to manage the flood risk at Water Rock have formed part of the work on the scheme design for Midleton. While an economically viable option for Water Rock has not been identified, to be included as part of the overall scheme at this time, the scheme’s consultants are currently conducting further investigations into potential flood risk management measures that might provide flood mitigation in the Water Rock area. These investigations are ongoing and subject to review by the Scheme Steering Group.
On 4 October I announced that the OPW was allocating some €5.8m to Cork County Council for the introduction of Individual Property Scheme for those homes and businesses in Midleton and East Cork that flooded during Storm Babet in October 2023. This scheme is open to Water Rock area and the details of the scheme are available on Cork County Councils website. Applications for this scheme close on 11th November 2024.
132. Deputy Michael Healy-Rae asked the Minister for Public Expenditure, National Development Plan Delivery and Reform if work on a river in County Kerry will be expedited (details supplied); and if he will make a statement on the matter. [39988/24]
View answerThe Office of Public Works (OPW) is responsible for the maintenance of Arterial Drainage Schemes and Flood Relief schemes completed under the Arterial Drainage Acts, 1945 and 1995 as amended. The area in question does not form part of an Arterial Drainage Scheme, therefore the OPW has no responsibility for the maintenance of the channel, nor any authority to carry out any works there.
Local flooding issues are a matter, in the first instance, for each Local Authority to investigate and address, and Kerry County Council may carry out flood mitigation works using its own resources.
The Council may also apply to the OPW for funding of flood mitigation works under the Minor Flood Mitigation Works and Coastal Protection Scheme. The purpose of this scheme is to provide funding to Local Authorities to undertake minor flood mitigation works or studies to address localised flooding and coastal protection problems within their administrative areas.
The scheme generally applies to relatively straightforward cases where a solution can be readily identified and achieved in a short time frame. Under the scheme, applications are considered for projects that are estimated to cost not more than €750,000 in each instance. Funding of up to 90% of the cost is available for approved projects, with the balance being funded by the Local Authority concerned. Any application received will be considered in accordance with the scheme eligibility criteria, which comprise economic, social and environmental criteria including a requirement that any measures are cost beneficial, and having regard to the overall availability of resources for flood risk management.
The OPW welcome applications under this scheme and is happy to engage with Local Authorities in this regard.
