13/10/2016 – IRISH TIMES

Budget 2017: Landlords ‘disappointed’ despite longed-for tax break

Landlords will get some relief on their 2017 tax bills thanks to the budget, in which Minister for Finance Michael Noonan signalled an increase in tax relief on mortgage interest in 2017 and a full restoration by 2021.

Landlords will be able to deduct 80 per cent of the interest paid on borrowings on a rental property next year, up from 75 per cent previously, with “full interest deductibility” expected by 2021.

Mr Noonan said it is “an appropriate time” to revisit this measure in the context of the housing crisis.

“In light of the incentive I introduced last year to support landlords who let their property to social housing tenants for a minimum period of three years, I am going to restore full interest deductibility for other landlords on a phased basis and my first step is to increase the level from 75 per cent to 80 per cent in 2017. I will increase it by instalments of 5 per cent until the full 100 per cent deductibility is restored,” he said.