Maurice Deverell says ‘all legitimate business expenses should be allowable against rental income’
Maurice Deverell, who has been a landlord for the past 26 years, hopes Budget 2023 focuses on meaningful measures to keep landlords and their properties in the market.
The 54-year-old believes this can be done through tax reliefs on inheritance and business expenses.
Mr Deverell currently rents out single units and commercial properties in Dublin and the UK.
His main hope for the Budget is that it provides equitable tax treatment comparable to real estate investment trusts (REITs) – which he says provides the same service as him.
“If I want to sell a unit in Galway for €500,000 and buy a similar unit in Cork for €500,000, I will be charged capital gains tax (CGT) at 33pc,” he said.
“So I would like CGT rollover relief where the Cork unit can offset the CGT liability of the Galway unit.”
Mr Deverell also wants to see the rent tax credit reinstated.
Under this credit, which ran from 2010 to 2017, tenants could claim tax credits if they paid for a private rented accommodation.
This included flats, apartments or houses.
“All legitimate business expenses should be allowable against rental income,” he said.
“For example, Local Property Tax is not allowable.
“I bought a couch for €1,000 in 2022. Over the next eight years, I will get tax relief at 12.5pc, but not Universal Social Charge relief, so the couch actually costs me out of my net income.
“In the UK I would get full tax relief for the couch in 2022, like most business expenses.”
As for what can be done in the Budget to help keep property in the rental market and tenants in their homes, Mr Deverell suggests a reduction in capital gains tax.
“When I die, the heir pays based on the value of the property, which often means selling the property,” he said.
“It would be beneficial if the value was treated like other farming or other business assets which are reduced by 90pc.”
Continuing on the theme of landlords and properties leaving the market, Mr Deverell said he would be disappointed if “nothing was done to stop the exodus”.
“The number of landlords leaving has doubled in the last year,” he added.
“Unsustainable 2pc rent controls and the six changes to legislation so far this year have not helped either.”
To stop this alarming exodus from the market, he believes rent-control laws need to change.
He also believes housing is the sector in need of the biggest contribution from the Budget.
“Everyone needs a roof over their head – energy only affects people who are housed.
“We cannot continue with more than 10,000 people homeless.”