Jim O'Callaghan
Ceist:123. Deputy Jim O'Callaghan asked the Minister for Finance the estimated cost of extending pre-letting expenses tax deductions to 2030. [40264/24]
Amharc ar fhreagraTuesday, 8 October 2024
Ceisteanna (123)
Freagraí scríofa
Section 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.