Construction BUSINESS

Tax breaks for ‘accidental landlords’ to boost supply in rental market

 Breaking News

Tax breaks for ‘accidental landlords’ to boost supply in rental market

Tax breaks for ‘accidental landlords’ to boost supply in rental market
March 21
09:00 2017

The Department of Finance has announced that tax breaks for “accidental landlords” could be applied to keep properties in the rental market and boost supply. These tax breaks would also encourage landlords to remain in, or to enter, the rental market. More towns are also expected to be designated as rent pressure zones in the coming weeks, including Cobh, Maynooth and Greystones.

The public consultation document on the tax treatment of residential landlords also raises the prospect of the property tax liability being transferred from landlords to tenants, following concerns that residential landlords were not treated in a similar fashion to commercial landlords.

The consultation document stated that landlords are an “essential feature of a fully functioning property market”, but said that almost 70% of landlords own just one property, and 91% have three or less. Professional landlords such as real estate investment trusts, corporate vehicles and investment funds, account for just over 2% of tenancies.

While income earned by individuals from the letting of property is liable for income tax under self-assessment, rental income earned by companies is subject to a lower rate of corporation tax.

Additional tax relief for expenses including restoration of 100% relief on mortgage interest, deduction for the time allocated to managing a property and deduction of the Local Property Tax has also been suggested.

VAT relief for construction of rental accommodation and the introduction of “penalty taxes” for vacant property or development land could also be introduced.

About Author

editor

editor

Related Articles

Constrcution Summit

The Magazine – Construction Business

The Magazine – Construction Summit – 2023

The Magazine – Construction Summit – 2024

New Subscriber

    Subscribe Here


    Advertisements