Written Answers Nos. 341-360
341. Deputy Pearse Doherty asked the Minister for Finance the estimated revenue that would be raised by introducing a 3% income tax surcharge, levied through the USC, on individual incomes with respect to the portion above €140,000, in first- and full-year terms; and the estimated revenue that would be raised in each of the years 2025, 2026, 2027, 2028 and 2029, respectively. [31972/24]
Amharc ar fhreagra342. Deputy Pearse Doherty asked the Minister for Finance the estimated revenue that would be raised by introducing a 2% income tax surcharge, levied through the USC, on individual incomes with respect to the portion above €140,000, in first- and full-year terms; and the estimated revenue that would be raised in each of the years 2025, 2026, 2027, 2028 and 2029, respectively. [31973/24]
Amharc ar fhreagra343. Deputy Pearse Doherty asked the Minister for Finance the revenue raised by introducing a 1% income tax surcharge, levied through the USC, on individual incomes with respect to the portion above €140,000, in first- and full-year terms; and the estimated revenue raised in each of the years 2025, 2026, 2027, 2028 and 2029, respectively. [31983/24]
Amharc ar fhreagraI propose to take Questions Nos. 341 to 343, inclusive, together.
It is assumed that the measures proposed by the Deputy are in addition to the existing surcharge of 3% on non-PAYE income in excess of €100,000, meaning that the total surcharge on such income in excess of €140,000 would be 6%, 5% and 4% for the 3%, 2% and 1% surcharge proposals respectively.
The estimated first and full year yields to the Exchequer for the suggested surcharges across all incomes are shown in the below table.
|
Proposal |
First Year €m |
Full Year €m |
|
1% surcharge for income levels above €140,000. |
130 |
165 |
|
2% surcharge for income levels above €140,000. |
260 |
325 |
|
3% surcharge for income levels above €140,000. |
385 |
490 |
Note: Estimates are rounded to the nearest €5m.
I am further advised that Revenue cannot provide estimates for later years due to the unknown nature of the future tax base and future economic behaviour.
It is important to be aware that estimates of tax policy changes to USC are provided on the basis of the current Budget year (2024) rather than the next Budget year (2025). The Budget year costings for 2025 are prepared for the party costings service and are used to feed into costings requested by the Department of Finance in advance of the Budget. The Revenue Pre-Budget Ready Reckoner (published end August) will also be on the basis of Budget year 2025.
345. Deputy Sorca Clarke asked the Minister for Finance the number of employment-related permanent injury compensation schemes for civil and public servants; and the total budget for each of the years 2021, 2022 and 2023, in tabular form. [32063/24]
Amharc ar fhreagraI refer to the answer to PQ No. 233 given by the Minister for Public Expenditure, NDP Delivery and Reform on 9 July last in which the Deputy was advised that this information would be collated by the State Claims Agency (SCA)/National Treasury Management Agency (NTMA).
In answering the current question I wish to set out for the Deputy the SCA's actual role in managing claims on behalf of the State.
The NTMA is known as the SCA when managing personal injury and third-party property damage claims against the State and certain State authorities, as delegated to it, and in providing related risk advice.
Under the Clinical Indemnity Scheme, the SCA manages clinical negligence claims taken against healthcare enterprises, hospitals, and clinical, nursing and allied healthcare practitioners covered by the scheme.
Under the General Indemnity Scheme, the SCA manages personal injury and third-party property damage claims taken against State bodies covered by the scheme.
Any personal injury claims made by staff of a State authority, whose claims are delegated to the SCA for management, against a State authority, would be managed under the General Indemnity Scheme.
The SCA also administers the Garda Compensation Scheme. This Scheme provides for compensation for personal injuries inflicted on a current, or former, member of An Garda Síochána, as a result of a malicious incident.
347. Deputy Pearse Doherty asked the Minister for Finance the projected annual revenue, in first- and full-year terms, of scheduled increases in the carbon tax in each of the years 2025, 2026, 2027, 2028 and 2029, relative to the carbon tax in the previous year, for example, the projected annual revenue in 2028 from scheduled increases in the carbon tax relative to 2027. [32085/24]
Amharc ar fhreagra404. Deputy Pearse Doherty asked the Minister for Finance the estimated additional revenue of scheduled increases in the carbon tax in 2025, 2026, 2027, 2028, 2029 and 2030, respectively, with reference to 2024. [33235/24]
Amharc ar fhreagraI propose to take Questions Nos. 347 and 404 together.
I am advised by Revenue that its Ready Reckoner for calculating the impact of potential changes in rates of taxation can be used to estimate the effect of changes to the carbon tax rate by extrapolating from the information on page 23. The Ready Reckoner is available on the Revenue website at: www.revenue.ie/en/corporate/information-about-revenue/statistics/ready-reckoner/index.aspx. An update of the Ready Reckoner is due to issue in the coming weeks. These estimates assume no behavioural change as a result of the additional price increases.
I am further advised that Revenue cannot provide estimates for later years due to the unknown nature of the future tax base and future economic behaviour.
With regard to multiannual projections, as the Deputy will be aware in July 2023 my Department published a paper examining the Potential Fiscal Impacts of the Transition to a Lower Carbon Economy in Ireland. The paper examined the potential fiscal impacts of current domestic climate action policies including commitments in the Climate Action Plan 2023 and the Programme for Government and is available online: www.gov.ie/en/publication/dd671-potential-fiscal-impacts-of-the-transition-to-a-lower-carbon-economy-in-ireland/
The analysis provides an overview of the potential exchequer revenue which may be impacted either negatively or positively by current domestic climate action policies. The paper builds on previous work on green budgeting published in 2022 and uses a scenario analysis of policy measures on exchequer revenues between 2023 and 2030.
As set out in previous responses to the Deputy, the Department of Finance analysis is a point in time exercise and it is anticipated that updated energy use and excise data will be available in the coming weeks which the Department will use for further updated analysis on potential fiscal impacts arising from the climate transition.
348. Deputy Mary Lou McDonald asked the Minister for Finance to provide an update on any potential resolutions to a matter raised by a group (details supplied) based in County Dublin; and if he will make a statement on the matter. [32088/24]
Amharc ar fhreagra375. Deputy Róisín Shortall asked the Minister for Finance if he will meet with a charity regarding the tax treatment of its general practice model (details supplied); and if he will make a statement on the matter. [32776/24]
Amharc ar fhreagraI propose to take Questions Nos. 348 and 375 together.
My Department, the Department of Health and Revenue have, for some time, been aware of issues which arose from contractual arrangements within the General Practitioner (GP) community whereby some GPs treat income under their General Medical Services (GMS) contract as income of a GP practice in which they are a partner or an employee, rather than income of that individual GP.
To clarify the correct tax treatment of GMS income under tax legislation, Revenue issued a guidance note to tax practitioners through the Tax Administration Liaison Committee in July 2023. That guidance confirmed there would be a transitional period until 31 December 2023 for compliance with existing tax law. That period has not been extended. Revenue published supplementary guidance on this matter on 10 November 2023, which is available at the following link: www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-04/04-01-15.pdf
Although the guidance was widely reported as a tax change, it did not, in fact, introduce a change to the tax treatment of GPs. Instead, it simply clarified the existing legal and administrative position.
In accordance with Section 58 of the Health Act 1970, a GMS contract is between the HSE and an individual GP. This means that, as a matter of law, income under a GMS contract belongs to the GP who entered into the contract with the HSE. The position does not change because a GP treats their GMS income as income of a medical practice.
Following on from that fact, under the legislation, there is no legal basis for Revenue to treat income arising under a GMS contract entered into between an individual GP and the HSE as if it were income arising under a contract between the HSE and the medical practice in which the GP is a partner or an employee.
A GP who holds a GMS contract is, under tax legislation, a chargeable person as regards income arising under the GMS contract and should report that income under the self-assessment system. The GP is also the specified person for the purposes of Professional Services Withholding Tax (PSWT), which means they are entitled to claim a credit for PSWT deducted by the HSE on GMS payments.
However, as part of Finance (No. 2) Act 2023, section 1008A was introduced to the Taxes Consolidation Act 1997 (TCA). This new section provides that where individual GPs enter into contracts with the HSE to provide certain medical services and provide those services in the conduct of a partnership profession with other individual GPs, the income from those services can be treated for income tax purposes, to be that of the partnership, where a joint election is made.
Section 1008A TCA has been effective since 1 January 2024. However, it only applies in the case of individual doctors who operate in partnerships with other individual doctors. It does not apply to, or change, the tax situation for doctors who are employees of a corporation or other arrangement, such as in respect of the business referenced by the Deputies. It is also limited only to income arising from GMS and certain ancillary medical services income.
When the provision was introduced in the Dáil during Report Stage of the Finance (No. 2) Act 2023, the then Minister for Finance noted that it is expected to resolve some, but not all, of the issues arising. For example, in respect of the situation referenced by the business in the details supplied by Deputy Shortall, the Department of Health have confirmed that the nomination of a bank account other than that of the contracted GP for payment of income under the GMS contract does not change the contractual relationship in any way. As such, the legal position remains that the individual GP is the person being contracted and therefore paid for the GMS contract, regardless of who owns the bank account into which they have nominated to receive the GMS income.
It should be noted that because there are a number of business arrangements and models in the GP sector, including partnerships, companies, employees and employers, it would not be appropriate for tax legislation to seek to accommodate all contracts and business practices in the sector. While I am conscious of the difficulties being experienced by GP practices, I must be cognisant of existing legislation, contract law and the Minister for Health’s remit in respect of the surrounding policy.
In response to Deputy Shortall's question, it would not be appropriate for me to meet with the business in question as the core issue concerns the contractual arrangements between individual GPs and the HSE. As such, I have referred the matter to the Minister for Health for his consideration. I would note that the Minister for Health has confirmed that the Strategic Review of General Practice, which is underway, will examine the relevant HSE contracts and propose measures necessary to modernise them.
349. Deputy Aengus Ó Snodaigh asked the Minister for Finance the amount of local property tax that has been collected by the Revenue Commissioners annually since its introduction, in each county. [32119/24]
Amharc ar fhreagraI am advised by Revenue that the table below provides the Local Property Tax collection amounts for the years 2013-2023 by county. The data refer to collections for a given LPT year rather than a calendar year.
Local Property Tax Collection Amounts (€m)
|
- |
2013 |
2014 |
2015 |
2016 |
2017 |
2018 |
2019 |
2020 |
2021 |
2022 |
2023 |
|
Carlow County Council |
2.1 |
4.1 |
3.9 |
3.9 |
3.8 |
3.9 |
3.8 |
3.9 |
3.8 |
4.1 |
4.1 |
|
Cavan County Council |
2.4 |
4.6 |
4.3 |
4.3 |
4.4 |
4.3 |
4.3 |
4.2 |
4.8 |
4.6 |
4.6 |
|
Clare County Council |
5.4 |
10.5 |
8.3 |
9.8 |
9.9 |
9.9 |
9.7 |
10.9 |
10.9 |
11.0 |
11.1 |
|
Cork City Council |
6.2 |
11.9 |
10.2 |
11.4 |
11.7 |
11.0 |
20.8 |
19.9 |
21.4 |
23.9 |
24.4 |
|
Cork County Council |
21.6 |
42.2 |
35.6 |
39.8 |
41.1 |
40.4 |
29.7 |
31.5 |
32.1 |
35.2 |
35.8 |
|
Donegal County Council |
5.9 |
11.4 |
10.7 |
10.6 |
11.1 |
10.6 |
10.9 |
12.2 |
12.1 |
10.4 |
10.4 |
|
Dublin City Council |
42.9 |
83.6 |
66.2 |
66.8 |
69.8 |
67.4 |
67.6 |
67.0 |
66.5 |
81.6 |
83.2 |
|
Dún Laoghaire-Rathdown CC |
27.3 |
53.0 |
42.2 |
42.6 |
45.3 |
43.6 |
43.4 |
43.0 |
50.8 |
49.8 |
51.1 |
|
Fingal County Council |
20.2 |
39.4 |
31.2 |
31.3 |
31.6 |
33.8 |
31.6 |
31.3 |
31.3 |
38.1 |
40.1 |
|
Galway City Council |
4.4 |
8.5 |
8.0 |
8.0 |
8.3 |
8.1 |
8.1 |
8.1 |
8.1 |
8.8 |
8.9 |
|
Galway County Council |
7.7 |
15.0 |
14.1 |
15.4 |
15.6 |
14.4 |
13.9 |
13.7 |
13.6 |
15.1 |
15.3 |
|
Kerry County Council |
7.4 |
14.6 |
13.8 |
13.8 |
14.3 |
14.5 |
14.0 |
15.1 |
14.7 |
14.2 |
14.6 |
|
Kildare County Council |
11.4 |
22.3 |
19.2 |
20.9 |
21.2 |
21.2 |
19.8 |
21.0 |
20.9 |
26.8 |
27.6 |
|
Kilkenny County Council |
4.0 |
7.7 |
7.3 |
7.3 |
7.4 |
7.3 |
7.1 |
8.0 |
8.0 |
8.6 |
8.7 |
|
Laois County Council |
2.7 |
5.1 |
4.8 |
4.8 |
4.7 |
5.3 |
5.0 |
4.9 |
4.9 |
5.6 |
5.7 |
|
Leitrim County Council |
1.2 |
2.3 |
2.1 |
2.1 |
2.1 |
2.1 |
2.1 |
2.4 |
2.3 |
2.2 |
2.2 |
|
Limerick City and County Council |
8.2 |
16.2 |
14.8 |
16.9 |
17.2 |
16.5 |
15.9 |
16.8 |
16.8 |
17.2 |
17.4 |
|
Longford County Council |
1.2 |
2.3 |
2.1 |
2.1 |
2.1 |
2.1 |
2.5 |
2.4 |
2.4 |
2.4 |
2.4 |
|
Louth County Council |
5.1 |
10.0 |
9.2 |
9.3 |
9.1 |
9.3 |
8.8 |
8.7 |
8.7 |
9.9 |
10.0 |
|
Mayo County Council |
5.5 |
10.8 |
9.8 |
10.0 |
10.5 |
10.2 |
10.2 |
10.0 |
10.9 |
10.0 |
10.0 |
|
Meath County Council |
9.2 |
18.0 |
16.7 |
16.8 |
16.1 |
17.1 |
15.8 |
15.6 |
15.6 |
19.8 |
20.2 |
|
Monaghan County Council |
2.0 |
4.0 |
3.7 |
3.7 |
3.8 |
3.7 |
3.7 |
4.2 |
4.1 |
3.7 |
3.7 |
|
Offaly County Council |
2.6 |
5.1 |
4.8 |
4.8 |
4.7 |
4.8 |
4.6 |
5.2 |
5.1 |
5.4 |
5.5 |
|
Roscommon County Council |
2.1 |
4.2 |
3.9 |
3.9 |
3.9 |
3.9 |
3.9 |
4.4 |
4.3 |
4.4 |
4.4 |
|
Sligo County Council |
2.8 |
5.5 |
5.2 |
5.1 |
5.2 |
5.1 |
5.1 |
5.8 |
5.8 |
5.4 |
5.4 |
|
South Dublin County Council |
16.5 |
32.5 |
26.0 |
26.2 |
26.4 |
26.3 |
24.9 |
24.6 |
24.6 |
28.6 |
29.1 |
|
Tipperary County Council |
6.2 |
12.2 |
11.6 |
11.6 |
11.8 |
12.7 |
11.5 |
12.4 |
12.3 |
12.0 |
12.0 |
|
Waterford City & County Council |
5.0 |
9.9 |
9.5 |
9.5 |
9.5 |
9.6 |
9.5 |
9.4 |
10.1 |
11.0 |
11.3 |
|
Westmeath County Council |
3.4 |
6.7 |
6.0 |
6.2 |
6.2 |
6.2 |
6.0 |
5.9 |
6.8 |
6.5 |
6.6 |
|
Wexford County Council |
6.4 |
12.5 |
11.9 |
12.5 |
12.6 |
13.1 |
12.9 |
12.7 |
12.6 |
13.3 |
14.1 |
|
Wicklow County Council |
9.0 |
17.7 |
14.0 |
16.6 |
17.3 |
16.8 |
16.4 |
17.9 |
16.3 |
20.4 |
20.9 |
|
Total |
258 |
504 |
431 |
448 |
459 |
455 |
443.5 |
453 |
463 |
510 |
520.8 |
350. Deputy Eoin Ó Broin asked the Minister for Finance the number of landlords who have to date claimed the new rented residential relief introduced in budget 2024; and the number of these landlords, by local authority area. [32122/24]
Amharc ar fhreagraBudget 2024 contained a suite of measures in the context of housing policy including the introduction of a new tax relief known as Residential Premises Rental Income Relief (RPRIR). RPRIR will provide relief, at the standard rate, on a portion of a landlord’s residential rental income. The relief will be €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.
I am advised by Revenue that as RPRIR applies to income from the tax year 2024 onwards and given that there are qualifying conditions as at 31 December 2024 that need to be satisfied, no claims have been received to date and are not expected to be received until 2025.
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
351. Deputy Pearse Doherty asked the Minister for Finance the estimated revenue that would be raised by reducing the standard fund threshold from €2 million to €1.8 million, €1.75 million and €1.5 million, respectively. [32131/24]
Amharc ar fhreagraThe Standard Fund Threshold (SFT) is the maximum allowable pension fund on retirement for tax purposes which was introduced in Budget and Finance Act 2006 to prevent over-funding of pensions through tax-relieved arrangements.
I am informed by Revenue that they are unable provide a costing for this. Information on the numbers and values of individual pension funds or on individual accrued benefits in pension schemes are not generally required to be supplied to Revenue. Therefore, currently there is no readily available underlying data or methodology on which to base reliable estimates of any possible yields which be realised arise from the reductions in the Standard Fund Threshold as outlined by the Deputy.
As the Deputy will be aware, there is an examination of the Standard Fund Threshold underway and in the context of this examination my officials are examining the issue of estimating the impact of changes to the SFT. The work on this is ongoing, and I hope I will be able to share the outcome in the future.
352. Deputy Pearse Doherty asked the Minister for Finance the estimated revenue that would be raised by introducing a second home charge of €100 and €400, respectively, in each of the years 2025, 2026, 2027, 2028 and 2029, with respect to every non-principal private residence, excluding residences owned by local authorities or AHBs. [32132/24]
Amharc ar fhreagraI am advised by Revenue that the table below sets out the estimated yield from the introduction of an additional charge of €100 and €400 on properties liable to Local Property Tax, excluding the first property for each liable person and also excluding all other properties owned by Local Authorities and Approved Housing Bodies. Revenue does not hold adequate information to distinguish between principal and non-principal private residences for the purpose of this costing.
|
Proposed Charge |
Estimated yield €m |
|
€100 |
37 |
|
€400 |
149 |
I am further advised that Revenue cannot provide estimates for later years due to the unknown nature of the future tax base and future economic behaviour.
353. Deputy Pearse Doherty asked the Minister for Finance the estimated revenue raised by introducing a 25% or 50% cap, respectively, on corporation tax relief utilised in a single year by NAMA-participating banks, in first- and full-year terms, and had it been introduced in the years 2022 and 2023. [32138/24]
Amharc ar fhreagra354. Deputy Pearse Doherty asked the Minister for Finance the estimated revenue raised by introducing a 25% or 50% cap, respectively, on corporation tax relief utilised in a single year by all banks, in first- and full-year terms, and had it been introduced in the years 2022 and 2023. [32139/24]
Amharc ar fhreagraI propose to take Questions Nos. 353 and 354 together.
As the Deputy is aware, loss relief for corporation tax is a long-standing feature of the Irish corporate tax system and a standard feature of corporation tax systems in most OECD countries. It recognises the fact that a business cycle runs over several years and that it would be unfair to tax income earned in one year and not allow relief for losses incurred in another. Loss relief works by allowing a deduction for losses incurred in one accounting period against profits earned in another period.
The value of these tax losses to the State is realised through share sales. The banks’ share prices recognise a certain value for the tax losses and, as such, the State receives value for the balance of tax losses as share sales are completed.
I am advised by Revenue the estimated revenue raised by introducing a 25 percent and 50 percent cap, respectively, on corporation tax loss relief utilised in a single year by NAMA participating banks and all banks would be dependent on the profitability of the banks in any particular year and the amount of losses available to the banks. Having regard to its confidentiality obligations under section 851A of the Taxes Consolidation Act, 1997, Revenue is not able to provide a breakdown between NAMA participating banks and all banks.
The estimated amount that would have been raised in 2022 is presented in the table below:
|
All Banks |
||
|
Year |
25% |
50% |
|
2022 |
€89m |
€178m |
It is not possible to provide data for 2023 as most banks have not yet submitted their tax returns, which for most are due on 23rd September 2024.
In 2018, Department of Finance officials produced a detailed technical note for the Committee on Finance, Public Expenditure and Reform and Taoiseach on the subject of both bank losses and corporation tax losses more generally (see www.gov.ie/en/publication/436ff7-technical-note-on-the-potential-consequences-of-changes-to-the-treat/). The technical note considered in some detail the potential implications of restricting the use of losses carried forward, or the introduction of a specific time limit or “sunset clause” on loss relief, for Irish banks, for the wider banking sector, or for the corporate sector as a whole.
355. Deputy Leo Varadkar asked the Minister for Finance the stated cost for each of the main tax reductions in budgets 2022 and 2023; and the actual outturn cost for each, for both years. [32143/24]
Amharc ar fhreagraThe main tax reductions as announced in Budget 2022 and 2023 related to the personal income tax package.
Budget 2022 included an income tax package with a first year cost of €0.54 billion and a full year cost of €0.62 billion, which included a broad range of income tax and USC measures.
The single standard rate income tax band was increased by 4.3% from €35,300 to €36,800, with commensurate increases for persons who are married or in civil partnerships. In addition, the main tax credits (personal, employee and earned income tax credits) were also increased, by just over 3%, or €50 each, from €1,650 to €1,700.
The 2% band ceiling for USC was also increased by €608, from €20,687 to €21,295, in line with the increase in the National Minimum Wage to ensure that a full-time adult worker who benefitted from the increase in the hourly minimum wage rate would remain outside the top rates of USC.
In Budget 2023, an income tax package was introduced with a first year cost of €1.13 billion and a full year cost of €1.30 billion.
The single standard rate income tax band was increased by 8.7% from €36,800 to €40,000, with commensurate increases for persons who are married or in civil partnerships. In addition, the main tax credits (personal, employee and earned income tax credits) were also increased by just over 4.4%, or €75 each, from €1,700 to €1,775.
The USC ceiling of the band for the 2% rate was also increased by €1,625, from €21,295 to €22,920, in line with the increase to the National Minimum Wage. This continued to keep full-time adult workers on the hourly minimum wage rate outside the top rates of USC.
The Home Carer Tax Credit was increased by €100 from €1,600 to €1,700, which equated to a 6.3% increase.
In addition, Budget 2023 introduced the Rent Tax Credit of up to €500 per year (or up to €1,000 for jointly assessed couples) in respect of qualifying rent paid in 2022 and subsequent years to end-2025.
I am advised by Revenue that information on the aggregate cost of tax credits for 2022 will be available later in Q3 of 2024 on the Revenue website at: revenue.ie/en/corporate/information-about-revenue/statistics/tax-expenditures/costs-expenditures.aspx.
I am also advised by Revenue that information on the cost of tax credits for 2023 will be available in 2025, as the deadline for submission of Form 11 tax return is November 2024.
I am further advised by Revenue that it is not possible to attribute an actual cost associated with changes to the standard rate income tax band in Budget 2022 and 2023, as the pre-Budget standard rate band structure is not subsequently applied to taxpayers, and as such no calculation of tax liabilities under the previous standard rate income tax band structure takes place.
The Tax Policy Changes document, which is part of the overall Budget documentation, includes a breakdown of each tax measures announced in the Budgets 2022 and 2023. It also provides explanations regarding the different costs and their impact on the tax base. The relevant documents are available at the following links:
assets.gov.ie/201244/2bb2e8d2-5220-4c05-be1b-41cb546df6e4.pdf and assets.gov.ie/235689/d0f4387c-47d7-459a-a9e4-c9fa190ea8f9.pdf
356. Deputy Niamh Smyth asked the Minister for Finance the way State pensioners can apply for the rent tax credit, as announced in budget 2024; and if he will make a statement on the matter. [32154/24]
Amharc ar fhreagraThe Rent Tax Credit, as provided for in section 473B of the Taxes Consolidation Act 1997 (TCA 1997), was introduced by the Finance Act 2022 and may be claimed in respect of qualifying rent paid in 2022 and subsequent years to end-2025.
Claims for the Rent Tax Credit in respect of the 2022 and 2023 years of assessment can be made by PAYE taxpayers by submitting an Income Tax return for that year. Self-assessed taxpayers can submit their claim for the credit in their annual tax returns also.
For claims relating to 2024, PAYE taxpayers have the option of claiming the rent tax credit due to them either throughout the year as rent is incurred or at the end of the year through their Income Tax return.
It is a general principle that in order to avail of income tax reliefs a person must pay income tax. The amount of Rent Tax Credit that can claimed will depend on the amount of rent paid and the amount of income tax paid by the claimant.
A State pensioner who pays rent in Ireland will be entitled to claim the Rent Tax Credit if they pay income tax in Ireland and satisfy the conditions which must be met in order for a claimant to qualify for the credit.
In the case of a single person, the amount of tax that must be paid to fully avail of the Rent Tax Credit is €3,900 in 2022, €4,050 in 2023 and €4,500 in 2024. Where the amount of tax paid is less than these amounts, the maximum relief is, in effect, limited by the amount of tax paid; the Rent Tax Credit is a non-refundable tax credit.
Full details of how to claim the tax credit and the conditions that apply are set out on the Revenue website.
357. Deputy Niamh Smyth asked the Minister for Finance the number of applications and the number of applications approved, respectively, for the help-to-buy scheme, by county, in each of the years since the introduction of the scheme, to date, in tabular form; and if he will make a statement on the matter. [32155/24]
Amharc ar fhreagraI am advised by Revenue that 115,241 Help-to-Buy (HTB) applications have been made to-date since the inception of the scheme. This excludes cancelled applications.
Applications for HTB may be made on a provisional basis as first time buyers will want to have certainty as to their entitlements in advance of commencing the purchase of a property.
An application will only progress to the “claim” stage if and when the applicant decides to purchase a property that is eligible for the scheme.
Where an application does not proceed to claim stage, it may be cancelled at the end of the year in which it is made, or at the end of March of the subsequent year for applications made in the final quarter of a year. Taxpayers may re-submit a cancelled application.
I am advised by Revenue that county information is only available for applications that proceed to claim stage, since the information on the property address is only captured at the claim stage.
The table below provides a county breakdown of fully approved claims by year since the introduction of the HTB, based on the date the application advanced to claim stage.
Where there are fewer than ten cases in a county, the exact number is not provided due to Revenue's obligation to protect taxpayer confidentiality.
|
County |
2017 |
2018 |
2019 |
2020 |
2021 |
2022 |
2023 |
Jan – June 2024 |
|
Carlow |
35 |
36 |
60 |
60 |
105 |
59 |
84 |
56 |
|
Cavan |
34 |
40 |
60 |
69 |
87 |
69 |
60 |
48 |
|
Clare |
60 |
74 |
126 |
104 |
166 |
93 |
134 |
69 |
|
Cork |
509 |
563 |
804 |
804 |
1,101 |
965 |
1,026 |
660 |
|
Donegal |
43 |
49 |
88 |
114 |
148 |
179 |
151 |
68 |
|
Dublin |
1,976 |
1,581 |
1,679 |
1,144 |
1,110 |
1,057 |
757 |
547 |
|
Galway |
201 |
218 |
290 |
331 |
417 |
330 |
376 |
165 |
|
Kerry |
45 |
41 |
81 |
98 |
104 |
117 |
80 |
30 |
|
Kildare |
514 |
475 |
682 |
781 |
1,012 |
1,049 |
1,079 |
357 |
|
Kilkenny |
36 |
48 |
85 |
141 |
122 |
120 |
159 |
80 |
|
Laois |
63 |
88 |
85 |
142 |
218 |
144 |
247 |
146 |
|
Leitrim |
12 |
16 |
<10 |
19 |
29 |
17 |
20 |
<10 |
|
Limerick |
162 |
151 |
210 |
213 |
256 |
177 |
214 |
151 |
|
Longford |
19 |
18 |
34 |
22 |
29 |
25 |
N/A |
<10 |
|
Louth |
130 |
185 |
218 |
189 |
341 |
311 |
326 |
185 |
|
Mayo |
64 |
78 |
144 |
131 |
160 |
167 |
145 |
45 |
|
Meath |
599 |
585 |
845 |
745 |
864 |
630 |
730 |
355 |
|
Monaghan |
30 |
43 |
67 |
66 |
100 |
81 |
72 |
38 |
|
Offaly |
55 |
34 |
59 |
78 |
134 |
155 |
130 |
88 |
|
Roscommon |
32 |
31 |
63 |
61 |
79 |
63 |
52 |
35 |
|
Sligo |
26 |
39 |
54 |
37 |
74 |
65 |
61 |
33 |
|
Tipperary |
83 |
84 |
112 |
96 |
133 |
115 |
107 |
53 |
|
Waterford |
127 |
113 |
145 |
161 |
192 |
162 |
220 |
138 |
|
Westmeath |
60 |
70 |
80 |
94 |
95 |
104 |
141 |
92 |
|
Wexford |
64 |
98 |
191 |
168 |
296 |
287 |
297 |
173 |
|
Wicklow |
258 |
211 |
305 |
224 |
304 |
252 |
437 |
229 |
Note: Data as of 16 July 2024.
358. Deputy Alan Dillon asked the Minister for Finance to consider making changes to the VRT for crew carrier vehicles and jeeps in the upcoming budget; and if he will make a statement on the matter. [32245/24]
Amharc ar fhreagraUnder the Finance Act 1992, Vehicle Registration Tax (VRT) is assessed on a vehicle at the time of its registration, and the tax payable depends on the VRT category of vehicle involved. VRT categories are linked to the vehicle’s technical categorisation under EU type-approval rules.
VRT category A is for passenger vehicles and vehicles in this category are generally EU category M1. Also included in this category are certain EU category N1 vehicles which have four or more seats. The amount of VRT on a category A vehicle has two components based on the vehicle’s carbon dioxide (CO2) and nitrogen oxide (NOx) emission levels. The CO2 component of the VRT charge is a percentage of the vehicle’s Open Market Selling Price (OMSP), ranging from 7% for a vehicle which has low CO2 emissions, up to 41% of the OMSP for vehicles with the highest emission levels. The NOx component of VRT is calculated using a progressive scale, starting with €5 and up to €25 per mg/km of the vehicle’s NOx emission levels. As a result of these calculations the total VRT charge for category A passenger vehicles increases according to the emissions of the vehicle involved and its market value.
Category B vehicles includes EU category N1. These vehicles are commercial vehicles, designed and constructed for the carriage of goods and not exceeding 3.5 tonnes. They generally have 3 seats or less, or, have more than 3 seats, but were assigned a BE bodywork code, meaning they have distinct passenger and cargo compartments in completely separate units. The VRT on category B vehicles is calculated at 13.3% of the OMSP of the vehicle.
Jeeps are classified as EU category M1 and are included in VRT category A. Crew carriers are EU category N1 and can be categorised as category A or category B for VRT purposes. Their VRT categorisation depends on the details of the vehicle’s technical specification, including whether the cargo and passenger areas are separate. If the vehicle’s cargo space is completely separate from the passenger space it will qualify for category B, due to the distinct cargo compartment. The category B VRT rate of 13.3%, for which crew carriers generally qualify, will typically result in a lower VRT charge than the vehicle would otherwise attract as a category A passenger vehicle.
As the Deputy will be aware, it is a long-standing practice of the Minister for Finance not to comment, in advance of the Budget, on any tax matters that might be the subject of Budget decisions.
359. Deputy Darren O'Rourke asked the Minister for Finance the capital budget allocation for the Revenue Commissioners in 2022, 2023 and 2024; the percentage of the 2022 and 2023 allocation spent; and if any unspent capital budget allocation was automatically transferred over to the next year in question. [32292/24]
Amharc ar fhreagraThe capital budget allocation for the Revenue Commissioners in the years 2022 2023 and 2024, and the percentage of that capital funding that was actually spent in 2022 and 2023, is outlined in the table below:
|
Vote 09 - Revenue Commissioners |
2022 Allocation€m |
2022 Expenditure€m |
% spent in 2022 |
2023 Allocation€m |
2023 Expenditure€m |
% spent in 2023 |
2024 Allocation€m |
|
V09 Gross Capital |
21.5* |
20.5 |
95 |
75.7** |
74.9 |
99 |
33.9 |
* Includes Deferred Surrender of Capital from 2021 of €0.493 million
** includes Supplementary Estimate
Revenue have confirmed to me that no indicative statement of proposed capital carryover by way of "deferred surrender" was submitted by the Office of the Revenue Commissioners for consideration by the Minister for Public Expenditure, National Development Plan Delivery and Reform for the years in question.
360. Deputy Imelda Munster asked the Minister for Finance if he plans to introduce an 8% VFX uplift to the current section 481 legislation; and if he will make a statement on the matter. [32299/24]
Amharc ar fhreagraThe section 481 film tax credit provides relief in the form of a corporation tax credit related to the cost of production of certain audio-visual productions, including costs incurred on visual effects (VFX). The scheme is intended to act as a stimulus to the creation of an indigenous film industry in the State, creating quality employment opportunities and supporting the expression of Irish and European culture.
Currently, the credit is granted at a rate of 32% of the lowest of:
• eligible expenditure,
• 80% of the total cost of production of the film, and
• €125 million
My predecessor, former Minister McGrath, provided for the increase in the section 481 project cap as part of Budget 2024 to support the competitiveness of our audio-visual sector in terms of attracting high value productions to Ireland and to further enhance Ireland’s reputation as a centre of excellence for screen production.
In relation to any plans to amend the section 481 legislation as part of Budget 2025, the Deputy will be aware that it is a long-standing practice of the Minister for Finance not to comment, in advance of the Budget, on any tax matters that might be the subject of Budget decisions.
