2% Health Contrib. on Section 23 Income?

[Bizzy]

I have rental income from a Section 23 property. I have filed paper returns for past 5 years approx. I have always declared income as NIL and carried forward loss (unused S.23 relief). I note this year the Return is different. I also signed up for ROS, I thought it might help confirm my calculations. I've just completed the return off-line and found the nice rebate I was expecting of €280 approx is reduced to only €80 approx. due to 2% Health levy on S.23 Rental Income. Is this new, changed, or should I have been paying this all along?

 

[Kitty Kat]

Not new at all. Section 23 releif only counts as a Capital Allowance in the first year. Thereafter it is carried forward as losses and is fully subject to PRSI. Strictly speaking you are liable to PRSI at 5% which is the Class which is applicable to rental income.