Landlords are set to miss out on any additional tax breaks in the Finance Bill this year, dashing hopes that measures would be put in place.
With landlords complaining over he impact of an evictions ban this winter, as well as budget day measures, it had been expected some benefit beyond what had already been announced would be included.
The budget allowed for an increase in the amount a landlord could shelter from tax that had been paid out on pre-letting expenses, which was doubled to €10,000.
However, following a backlash after the budget from landlords who said the measures were insufficient, the Government let it be known that further measures were being considered, including more tax breaks, for the Finance Bill. This is the piece of legislation which gives effect to the budget, and it is due to be published on Thursday.
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But two sources with knowledge of the situation have now said that there will be no further tax breaks for landlords beyond what was announced in the budget. The lack of action is likely to stoke resentment among landlords, who have been warning of an exodus from the market amid a tightening of rental supply.
It is thought that there was resistance among officials in the Department of Finance who were wary of creating a new tax treatment for landlords, and that doing so would have been both expensive and logistically challenging, as well as raising equity issues — especially if it was levied on income tax.
There may be further efforts to strengthen tax breaks as the bill makes its way through the legislative process
Elsewhere, the bill is expected to broaden eligibility for the government’s €1.25 billion Temporary Business Energy Support Scheme (TBESS), which was announced in last month’s budget.
The eligibility is now expected to include those involved in the professions, known as “Case 2″ earners by the Revenue Commissioners, which includes doctors, accountants, solicitors and dentists.
The TBESS allows for the State to cover up to 40 per cent of the increase in energy bills, up to a maximum of €10,000 per month. When a business operates in more than one location, the cap will be €30,000.
