Most of these ideas are far too complicated.Sliding scale of Tax relief depending on period of lease might suit some landlords, like CGT relief introduced.
Fully agree. Tax and tenancy law are too difficult to align closely and forever. A CGT relief with the basic obligation on the vendor to prove that the property was let to a paying tenant or tenants for a sustained period would be simple enough to demonstrate and hard to fake.Most of these ideas are far too complicated.
The abolition of indexation relief by McCreevy was a de facto wealth tax once inflation is >0% which it usually is. It is long past time to bring back indexation relief.The fact is that, in the absence of Indexation Relief for the last 20 years (!),
I think you're unconsciously contradicting yourself there. Any CGT relief contingent on the property being continuously let to paying tenants for a set period would present a lot of difficulties, particularly if there are unanticipated breaks in the lettings. The precedent of CGT retirement relief where the asset must be in continuous business use throughout a ten year period sounds simple but in practice can get notoriously complicated.Fully agree. Tax and tenancy law are too difficult to align closely and forever. A CGT relief with the basic obligation on the vendor to prove that the property was let to a paying tenant or tenants for a sustained period would be simple enough to demonstrate and hard to fake.
You are of course correct. The final indexation rate (for 2002 expenditure disposed of in 2003 or later) was a suprisingly high 4.9%.The abolition of indexation relief by McCreevy was a de facto wealth tax once inflation is >0% which it usually is. It is long past time to bring back indexation relief.
Amen to the above.Agree with the "too complicated" post.
Make it simple; align the tax rates of corporate landlords and smaller landlords so everyone pays 25% tax on rental income.
In return ditch the whole notion of off-setting expenses against tax.
Long term leases of 10 years to avail of 25% tax rate. Five year leases pay 35%. Shorter leases pay 50%.
Market rent applies at the start of each lease.
Annual rent reviews are done by RTB & they email owner & tenant.
Speedy eviction - within 3 months - for non-payment; otherwise tenant has right of residency for the full term of the lease.
Why have low income tax for one sector?Agree with the "too complicated" post.
Make it simple; align the tax rates of corporate landlords and smaller landlords so everyone pays 25% tax on rental income.
In return ditch the whole notion of off-setting expenses against tax.
Long term leases of 10 years to avail of 25% tax rate. Five year leases pay 35%. Shorter leases pay 50%.
Market rent applies at the start of each lease.
Annual rent reviews are done by RTB & they email owner & tenant.
Speedy eviction - within 3 months - for non-payment; otherwise tenant has right of residency for the full term of the lease.
we're trying to solve a problem.low income tax for one sector?
Make it simple;
Long term leases of 10 years to avail of 25% tax rate. Five year leases pay 35%. Shorter leases pay 50%.
Tenants always have the option to move out. The point being they have security of tenure for ten years if they want it. The only reason they can be evicted is for non-payment of rent.not ....much demand for ten-year rental contracts at all
But CGT relief only comes in to play when the property is sold.CGT relief
Yes, the only way to solve the problem is to let the market function. What we have now is essentially a command economy within the housing sector. Command Economies don't work. Ever.we're trying to solve a problem.
The whole conversation around housing is extremely economically illiterate and emotive. The Mrs. Lovejoy "Will someone please think of the children" type reporting in most of the media doesn't help. For most politicians and commentators the "solution" has to fit inside their ideological envelope. That's a big part of the problem.Finland had a similar problem until they abolished rent controls and made it a free market. A lot to be learned.
Rent controls are an act of desperation. They destroy the rental market and encourage landlords to sell up. Eviction bans just compound the failure of rent control and failed housing policies
Something has to change in Ireland