Tax relief on rent paid to be done away with in Budget 2010

[minion]

Ive been hearing rumors about this more and more the past few weeks.
Is this true? Whoever though of it is a genius to be fair. Master stroke.

It would raise a lot of money with no cost to the revenue. They can just stop the tax credits. Simple to implement. No need to collect. No need to chase people for it.

Its much easier to do than a property tax. Also it has little no effect on the unemployed or low paid.

 

[DB74]

I presume you don't pay rent then?

 

[minion]

No I dont.
But what has that to do with anything.
I own property. I am happy to pay a property tax, which is definitely coming.
People who pay rent and receive tax credits for nothing, should be happy to do their bit too.

It makes perfect sense.
Not only do you get tax from everyone who owns property.
Now you dont give away money to any tax payer who rents property. This will be a massive increase in the budget.
And the best bit is that it is so easy to do at no cost.

 

[venice]

But what has that to do with anything.

Everything.

I am happy to pay a property tax, which is definitely coming.

No it certainly is not definite. Fact.

People who pay rent and receive tax credits for nothing, should be happy to do their bit too.

Everyone is doing there bit as it is as far as i can see...

 

[minion]

Everything.

No it certainly is not definite. Fact.

Everyone is doing there bit as it is as far as i can see...

Im sure you'll agree that its better to do this straight away and work out how to do the property tax in the most cost effective manner afterwards, so that no more public money has to be spent on new work. We can all carry the burden in the most cost effective way to the state.

Or would you like only house holders to be burdened?

 

[venice]

Im sure you'll agree that its better to do this straight away and work out how to do the property tax in the most cost effective manner afterwards

Wrong, the money it would bring in would be pittance.

Or would you like only house holders to be burdened

Wrong again. I dont agree with a property tax and i think its unlikely to happen. Fianna Fail would be finished for all time not just for the foreseeable futhure. Political madness. Also a lot of people cant afford it.
Money cannot be got from people who have not got it. people are paying enought imo.

Let Anglo go as a starting point......

 

[dereko1969]

The relief on rent paid was a hugely useful tool for Revenue in identifying Landlords who were not declaring their income and probably more than paid for itself through allowing Revenue to target those Landlords not fulfilling their obligations. It still has a role to play for that reason alone. Given all the reliefs available for home owners, is it really that much to have some allowance for renters?

 

[jpd]

The relief on rent paid was a hugely useful tool for Revenue in identifying Landlords who were not declaring their income and probably more than paid for itself through allowing Revenue to target those Landlords not fulfilling their obligations. It still has a role to play for that reason alone. Given all the reliefs available for home owners, is it really that much to have some allowance for renters?

To be fair, reliefs is only available to home owners with a mortgage

 

[elcato]

To be fair, reliefs is only available to home owners with a mortgage

I think you're mixing up this with TRS. This post is dealing with the rent relief tax credit for renters.

 

[jpd]

I was just referring to Dereko1969's post, where he referered to rent relief in relation to reliefs available to home-owners

 

[queenlex]

Ive been hearing rumors about this more and more the past few weeks.
Is this true? Whoever though of it is a genius to be fair. Master stroke.

It would raise a lot of money with no cost to the revenue. They can just stop the tax credits. Simple to implement. No need to collect. No need to chase people for it.

Its much easier to do than a property tax. Also it has little no effect on the unemployed or low paid.

It would certainly alter prices too bc it would bring down rents and yields for buy to let would be less attractive too.

 

[jpd]

And so capital values ie house prices would fall too - exactly what the market needs, more affordable houses

 

[venice]

And so capital values ie house prices would fall too

i think you are getting a bit carried away here. i dont think the small bit of rent relief being taken away influence house prices in any way at all...

 

[queenlex]

And so capital values ie house prices would fall too - exactly what the market needs, more affordable houses

Sorry that was my point and I agree it needs to happen and the sooner the better to get it out of the way really.

 

[queenlex]

i think you are getting a bit carried away here. i dont think the small bit of rent relief being taken away influence house prices in any way at all...

It would bc the prospective landlords would pay less naturally so as to keep their yields higher.

 

[Complainer]

The main value of this tax to the State is the record is provides of who is renting out property.

 

[minion]

The main value of this tax to the State is the record is provides of who is renting out property.

The PRTB fulfills this function now.
Easier than a tax credit to get people to provide details would be to offer a one off payment to report a non compliant landlord.

 

[Berni]

The PRTB fulfills this function now.
Easier than a tax credit to get people to provide details would be to offer a one off payment to report a non compliant landlord.

Not entirely. The PRTB registration is done by the landlord. If he's running a dodgy operation he's not going to put himself on the radar. The tax credits are claimed by the tenant, and therefore provide a useful cross-check.