See details below:
Returns by Lessees and Agents: There has been an amendment made to the provisions which allow Revenue to obtain information on let properties. The new provisions require property agents to include, in a return of information, the tax reference number of each property owner and the Local Property Tax (LPT) number. In addition there is a requirement for Government bodies paying rent or rent supplement to include, in the return of information, the LPT number in respect of each residential property. The commencement of these new provisions is now subject to Ministerial Order.
Interest deduction: Interest deduction on loans to acquire private residential property In computing taxable rental profits, the deduction available for interest incurred on loans to acquire private residential property is restricted to 75%. To incentivise landlords to rent their properties to tenants in receipt of social housing supports, an amendment is made to reinstates the full 100% interest deduction. The landlord must undertake, for a period of at least three years, to provide accommodation to such tenants and must register such undertakings with the Private Residential Tenancies Board within certain time limits. The landlord can avail of the increase in interest deductions from 75% to 100% after the end of the three year period provided other conditions have been fulfilled. The additional annual 25% deduction for the three-year period will be rolled up and allowed as a deduction against rental profits in year four (in addition to the normal 75% interest deduction available in that year.) The new provisions specify 1 January 2016 as the earliest date and 31 December 2019 as the latest date in which a three-year undertaking period to rent to social housing support tenants can commence. In essence, a landlord will be able to avail of the scheme for a maximum period of six years provided the first three-year undertaking is commenced not later than the end of 2016.
Small Benefits Relief: The Bill introduces a new legislative exemption from income tax, PRSI and USC on ‘qualifying incentives’ provided by employers to employees (including directors). ‘Qualifying incentives’ include both vouchers and benefits. A ‘benefit’ is defined as a tangible asset other than cash. Only one voucher or benefit may be given to an employee in any one year, the value of which cannot exceed €500, and a voucher must not be exchangeable in part or in full for cash. The voucher must not be part of any salary sacrifice arrangement between the employer and the employee. This relief builds on an existing Revenue concession whereby employers could provide an employee with a single tax-free non-cash benefit of up to €250 in a year. The new rules are applicable from 22 October 2015.