Investment funds: Sinn Féin decides to end “tax benefits and exemptions”

Sinn Féin is calling for an end to what it says are tax advantages and exemptions granted to investment funds in the residential property market.

The party would later tell the Dáil that tax increases were needed to meet the bulk house purchase funds at the expense of ordinary individuals and families.

Last year, the funds bought 4,900 private rental properties at 32% above average asking prices, according to a recent report.

Party finance spokesman Pearse Doherty says they are having a negative impact on the Irish property market.

“They don’t pay any rental income tax when they rent out this property.

“And any gains made, any increases in value at the time they sell them, they also don’t have to pay tax on those gains that materialize.

“This allows these institutional funds to unleash enormous firepower in terms of outbidding and driving up house prices across Dublin city – but also further afield.”

He says the government must act.

“We want to make the fact that they don’t pay taxes come to an end, we want to make the fact that they are exempt from CGT – Capital Gains Tax – come to an end.

“We want to ensure that the government provides adequate resources to local authorities to fund the eventual purchase of an apartment complex, where needed.

“And we want to make sure that an appropriate level of stamp duty is applied to these institutional investors.”

During a debate on the cost of living to Newstalk breakfast, Sinn Féin housing spokesman Eoin Ó Broin said renting is more expensive now than it was in the days of the Celtic Tiger.

“€1,500 statewide is the average cost of a rental right now, €2,000 in Dublin.

“We have cried for years for the government to stop rent increases.

“We are supposed to have a 2% rent cap – every county, according to the latest reports from Daft and the Residential Tenancies Board, has rents well above that.

“All West Coast counties have rent inflation of 20% or more.

“And Dublin, despite some flattening during COVID, is now seeing rent increases of 8-14%.

“The reality is that he is far too expensive to rent – he is now more expensive to rent than he was in the heyday of the Celtic Tiger.”

Sinn Féin decides to end the “firepower” of investment funds in the residential property market

00:00:00 / 00:00:00

Additional reporting: Adrian Harmon

Main image: Sinn Féin’s Pearse Doherty (centre) speaks to the media at Leinster House in February 2020. Photo by: Leah Farrell/RollingNews.ie

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