Dáil Éireann debate -
Wednesday, 3 Nov 1993

Vol. 435 No. 4

Written Answers. - Tax Incentives.

Frances Fitzgerald

Question:

30 Ms F. Fitzgerald asked the Minister for Finance if he will have arrangements made to examine the situation in relation to historic houses and taxation relief in this country; and if he will make a statement on the matter.

Frances Fitzgerald

Question:

31 Ms F. Fitzgerald asked the Minister for Finance if he will give tax incentives to owners of listed buildings to continue to maintain them.

Minister for Finance (Mr. B. Ahern)

It is proposed to take Questions Nos. 30 and 31 together.

The tax code already has a number of tax reliefs to encourage the preservation of heritage property. These reliefs are as follows:

(1) Section 19, Finance Act, 1982

Section 19, Finance Act, 1982 provides for relief from income tax or corporation tax to owner/occupiers of approved buildings in the State in respect of certain expenditure incurred by them after 5 April, 1982 on the repair, maintenance or restoration of buildings (or of any land occupied or enjoyed with an approved building as part of its garden or grounds of an ornamental nature in respect of which determination have been made——

*by the Commissioners of Public Works in Ireland that it is a building which is intrinsically of significant scientific, historical, architectural or aesthetic interest, and

*by the Revenue Commissioners that reasonable access is afforded to the public.

(2) Section 29, Finance Act, 1992

Section 19, Finance Act, 1982 was recently extended by the provisions of section 29, Finance Act, 1993 to provide tax relief on expenditure incurred on the maintenance or restoration of gardens which are not attached to significant buildings but which are determined by the Commissioners of Public Works to be of significant horticultural, scientific, historical or aesthetic interest. The rules for granting relief under section 29, Finance Act, 1993 are the same as those for section 19, Finance Act, 1982 and the Revenue Commissioners are also empowered to make determinations in respect of reasonable access.

(3) Residential Property Tax

In addition to granting tax relief on expenditure incurred on the repair, maintenance or restoration of a building, a determination under section 19, Finance Act, 1982 also removes the building from the charge to residential property tax (section 95, Finance Act, 1983).

(4)Section 4, Finance Act, 1989

Section 4, Finance Act, 1989 provides for relief for heritage houses in designated areas as part of the urban renewal reliefs. The section provides for relief from income tax in relation to houses in designated areas which are determined by the Commissioners of Public Works to be of scientific, historical, architectural or aesthetic significance. The relief consists of an income tax deduction in respect of 25 per cent of the relevant expenditure incurred by an individual in the first year of claim with a further deduction of 5 per cent allowable in each of the following five years, i.e. a total of 50 per cent. The expenditure must be in respect of repair, restoration or maintenance which is consistent with the original character or fabric of the building and the house must be used by the individual as his sole or main residence. As this relief is part of the urban renewal reliefs, it is due to terminate with the other such reliefs on 31 July, 1994.

(5)Section 39, Capital Acquisitions Tax Act, 1976

Section 39, Finance Act, 1978 provides that certain heritage houses and gardens situated in the State are exempt from capital acquisitions tax provided that they are not sold within six years from the valuation date.

The requirements for exemptions are

*the house or garden must not be held for the purposes of trading and must be shown to the satisfaction of the Revenue Commissioners to be of national, scientific, historic or artistic interest,

*reasonable facilities for viewing must be allowed to members of the public on a continuous basis and also for the three years immediately prior to the acquisition.

In view of this range of tax reliefs in relation to heritage property, I have no plans to introduce further incentives in this area.