Wednesday 23 October 2019

'Interest relief welcome - but the damage has been done'

My story: the landlord

Property owner Nigel Tuite
Property owner Nigel Tuite
Ian Begley

Ian Begley

The full restoration of the mortgage interest relief has come as an enormous boost for landlords, but according to property owner Nigel Tuite the damage has already been done.

During the recession, the tax burden on landlords rose significantly when mortgage interest relief was slashed from 100pc to 75pc in 2009.

Mr Tuite, who owns numerous properties in Dublin, said the controversial move drove many landlords into insolvency or out of the country.

"The landlords who were struggling with high loans or those in negative equity were the ones that suffered the most. They were literally paying income tax on money that didn't actually exist, which is why hundreds of landlords went broke or were driven out of the country.

"Of course the 100pc restoration is a huge relief for landlords, but a lot of damage has been done and it's going to take years for the sector to recover."

Mr Tuite, who also owns his own construction business, added that he's disappointed that the Local Property Tax (LPT) is still not a deductible expense for landlords.

"At the moment if your LPT is €500, the landlord won't be allowed to account for it so they will have to pay an additional €250 as income tax. It's unfair and is another burden negatively affecting the market," he said.

Irish Independent

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