Minister says tax measures may be needed to keep landlords from exiting the rental market,

That would mean an effective tax increase on many recipients of rental income
It could be easily calibrated to make it less of a burden on average. It also makes the tax treatment neutral with respect to the source of finance used - the tax system shouldn't encourage debt over equity.

Finally it has the huge advantage of simplicity which means less work for accountants :)
 
It could be easily calibrated to make it less of a burden on average.
Not if it's a flat rate.

It also makes the tax treatment neutral with respect to the source of finance used - the tax system shouldn't encourage debt over equity.
It makes no sense, when there's a shortage of investment, to discourage new and predominantly leveraged investment.
Finally it has the huge advantage of simplicity which means less work for accountants :)
Nonsense on both counts. (The 12.5% flat Corporation Tax has been an absolute bonanza for employment of accountants and accounts staff generally.)
 
Not if it's a flat rate.
"on average" - most tax changes have winners and losers


Nonsense on both counts. (The 12.5% flat Corporation Tax has been an absolute bonanza for employment of accountants and accounts staff generally.)
A tax rate of 25% on all cash received from your tenant is remarkably simple to calculate compared to the current system.

I know a lot of small-time landlords who aren't able to do it themselves.
 
"on average" - most tax changes have winners and losers
Yes, of course there's no way of calibrating it to ensure you won't have winners and losers.
A tax rate of 25% on all cash received from your tenant is remarkably simple to calculate compared to the current system.

I know a lot of small-time landlords who aren't able to do it themselves.
The issue isn't doing the calculations in a relatively simple P&L account. Anyone with a half an hour and a calculator can do those.

The issue is ensuring that people don't pay tax on non-existent profits. Once that becomes a significant risk (it already is a marginal risk in the current tax code and it would be inherent in any system of paying tax on the basis of turnover) it would of course scare landlords who fear they'd end up even worse off under it.
 
I've always thought a site value tax would discourage institutional investors, land hoarding, vacant sites and premises and the practice of holding finished units off the market but since people don't understand the real impact of such taxes they are against it.
 
It's a nice article that sets out all the options. I think policymakers need to decide whether they want to keep fiddling or do something radical.

Fiddling
  1. Allow LPT deducibility
  2. Full relief on mortgage interest
  3. Section 23-type reliefs
  4. Making rental profits eligible for pension contributions
  5. Reduce CGT rate

Radical
Tax all rental income at a flat rate of something like 25%. completely separately from other income. No deductions for anything except perhaps major renovations with the relief spread over several years. No CGT.

My guess is that they will go for a lot of superficial fiddling in favour of landlords that will leave the system more or less the same.
I think the flat rate makes some sense. Though one of the issues right now is that there is no reward for socially beneficial behaviour like keeping rents low. An alternative could be a sliding scale that depends on the individual rent charged - so someone renting out a single property at 2k per month is charged a higher rate of tax than another landlord renting out 2x properties at 1k per month each.
 
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I think the flat rate makes some sense. Though one of the issues right now is that there is no reward for socially beneficial behaviour like keeping rents low. An alternative could be a sliding scale that depends on the individual rent charged - so someone renting out a single property at 2k per month is charged a higher rate of tax than another landlord renting out 2x properties at 1k per month each.
I understand what you're trying to achieve, but it's too difficult. Wouldn't take into account location, finish or any number of other variables why one house is worth 1k and another is worth 2k, even if they're both 3 bed semi-d's.

Flat rate of tax & making rental profits eligible for pension contributions would be a win.
 
Flat rate of tax & making rental profits eligible for pension contributions would be a win.
Once the flat rate would be on profits less capital allowances and not on rents received/turnover I'd be all for it, and for the eligibility for pension contributions. I'd also add abolishing the ludicrous close company surcharge for "unearned" investment income that (ironically) only applies to mom & pop corporate landlords, not to the big guns.
 
Once the flat rate would be on profits less capital allowances and not on rents received/turnover I'd be all for it,
The problem is that rental income is taxed as trading income when it is largely passive income.

The most conscientious landlord in the world will not make much more than a lazy landlord with the identical property next door. The property is doing most of the work, not the landlord.

Rental property is wealth and is most simply taxed as a % of said wealth.
 
The problem is that rental income is taxed as trading income when it is largely passive income.

The most conscientious landlord in the world will not make much more than a lazy landlord with the identical property next door. The property is doing most of the work, not the landlord.
With respect that's utter nonsense. A professional landlord who devotes time and energy to their rentals and who has strong skills in both negotiation and in screening timewasters and troublemakers will make far more money longterm than an amateur who lacks those skills and who doesn't bother working on it.

Rental property is wealth
Any income stream including a secure job or pension is a form of wealth.
and is most simply taxed as a % of said wealth.
Simplicity has nothing to do with logic, fairness or efficacy. Killing every first-born would be a very simple way to quell a housing shortage but nobody sane would argue for it.
 
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Rental property is wealth and is most simply taxed as a % of said wealth.
All property is a form of wealth. I'd tax all property (more specifically the site value of the property). In fact there's an argument for lower taxed on properties that are rented out since they provide a social good and the income generated from them is taxed anyway.
If you own a house you don't have the cost of a mortgage or rent. That has a material impact on your net income. Why should a landlord who uses their property asset to generate an income stream be punished when if they use that same property to avoid a cost by living in it and not paying rent or a mortgage they are a good guy?
 
As an aside, there are new notice periods coming in to protect tenancies. The information is on the Threshold website - increased notice days and 90 days now required for tenancies of 6 months or less. Other notice periods also increased. Announced by the minister for housing at the launch of a tenant sentiment survey earlier today.
 
As an aside, there are new notice periods coming in to protect tenancies. The information is on the Threshold website - increased notice days and 90 days now required for tenancies of 6 months or less. Other notice periods also increased. Announced by the minister for housing at the launch of a tenant sentiment survey earlier today.
The minister should do a landlord sentiment and ask reason why landlords are leaving the market. Messages here show the many reasons and not because of increase in house prices. They should include landlords that have exited the market.
 
You need lower tax rates on landlords (small landlords with one or two properties).

This point of view, especially if adopted by government greatly concerns me.
I am a PAYE worker who has invested in 6 rental properties over the last 20 years.
I am not quite sure how “professional landlord” is defined in Ireland, but I have also heard that professional landlords should not be allowed to benefit from any potential tax advantages.

WHY?

As a PAYE worker (professional landlord or not) with no business set up and not part of any corporation to shelter tax, why shouldn’t I benefit from any potential tax advantages.
Surely if a landlord has 1 property or 100 and is not benefitting from any other tax shelter, he/she should then benefit from any government scheme incentivising holding on to your rental properties. The same principle goes for a potential investor looking to buy 1 or 100 properties.
We currently have a housing crisis/emergency here in Ireland in relation to a shortage of rental properties due landlords selling up so it makes no sense to me not to extend any tax incentives to multi owner landlords who are not currently availing of any other tax shelters.
 
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