Finance minister ignored expert advice against landlord tax breaks

Michael McGrath said the measure was introduced as a way to stop small landlords from leaving the market. Picture: Gareth Chaney/Collins 

It has emerged the finance minister ignored warnings from officials in his department before introducing tax breaks for landlords in the budget.

A freedom of information request by Sinn Féin found Michael McGrath was advised against moves that would see landlords receiving a boost of €1,000 a year by 2026.

Mr McGrath said the measure was introduced as a way to stop small landlords from leaving the market.

As a result of the decision, one in four landlords are set to pay no tax on their rental income.

Sinn Féin's finance spokesperson Pearse Doherty said only 6% of landlords who left the market raised the issue of taxes.

"They drew comparisons to the tax breaks of the past which they said were disastrous in arguing against this," said Mr Doherty.

"But, obviously, the minister dismissed all of that and did his own thing and introduced a tax break to the benefit of landlords that will now cost hundreds of millions of euro."

He accused the Government of providing more support to landlords than renters or mortgage holders and said it was indicative of their priorities.

It is Generation Rent who will actually pay, along with the rest of us, they will shoulder the hundreds of millions of euro of this tax break that Fine Fáil and Fine Gael gave to landlords.

He said there were already €1.66bn worth of tax breaks available to landlords. Mr Doherty said the minister's decision to ignore expert advice shows why there is a housing crisis.

"That is why we need a change of government that actually deals with the problems that Fianna Fáil and Fine Gael have created in the first instance," he said.