Coalition considers new tax relief for landlords

Officials to discuss package for renters who accept tenants from the social housing list

Minister for Finance Michael Noonan at the National Ploughing Championships. Photograph: Eric Luke/The Irish Times
Minister for Finance Michael Noonan at the National Ploughing Championships. Photograph: Eric Luke/The Irish Times

The Government is considering introducing a new tax relief for landlords who take people off the social housing list.

Officials from the Department of the Environment and Finance are to meet today to finalise details of a package aimed at tackling the housing crisis.

Minister for the Environment Alan Kelly is pushing for a tax break for private landlords who assist the 90,000 people on the social housing list.

His officials are also due to bring forward a “rent certainty” package to be unveiled in next month’s Budget.

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Government sources said the plans to link rent to the consumer price index are at an “advanced stage”.

The package would allow for tenants to have their rents fixed for three years and linked to the rate of inflation.

However, there is some resistance within the Department of Finance to the move and the issues are to be discussed at today’s meeting.

Department of Finance officials are eager to deal with the issue of supply and are proposing a reduction in development levies, which are paid to local authorities by developers purchasing a site.

Minister for Finance Michael Noonan is also to press for Nama, the National Asset Management Agency, to initiate more building of homes.

The two Ministers are eager for the plans to be announced in the Budget.

Mr Noonan will also use the Budget to outline his proposals to phase out the Universal Social Charge over the lifetime of the next government.

Speaking yesterday, he said personal taxes in this country were too high and were costing jobs.

He confirmed self-employed people would receive a “significant” tax break in the Budget, believed to be €150.

This would be the first attempt to bridge the gap between PAYE workers and the self-employed with a view to equalisation over the next three years.

PAYE workers receive an additional tax credit of up to €1,650 but self-employed people cannot claim it.

Airbnb controversy

Mr Noonan ruled out any changes in the taxation of Airbnb income.

He said: “They should be taxed because that is the business they are in. It is a matter for Revenue, and Revenue ruled on it. It is a matter of taxable income. I am not going to change that in the Finance Bill.”

Controversy developed in the summer when the accommodation rental site told users it had given the Revenue Commissioners details of their income.

A number of Ministers as well as the Taoiseach have contacted Mr Noonan asking for the tax treatment of Airbnb income to be changed.

Speaking at the National Ploughing Championships, Mr Noonan said he was “very surprised” the Health Service Executive had requested an extra €1.9 billion in the Budget.

He said the organisation was present at a two-day consultation with interested groups where everyone agreed on the €1.5 billion parameters set out for tax cuts and spending increases.

The Minister said he found it “incredible” the HSE wanted to “grab it all and €400 million more”.

He said this was an attempt to create a scenario where the HSE could not be blamed if there was a problem later in the year.