Skip to main content
Normal View

Dáil Éireann debate -
Tuesday, 11 May 1999

Vol. 504 No. 4

Written Answers. - Tax Reliefs.

Joe Higgins

Question:

165 Mr. Higgins (Dublin West) asked the Minister for Finance the tax incentives available to prospective residents under the new rural renewal schemes for the Upper Shannon Region including Longford, Leitrim and parts of Roscommon; the conditions attached to the incentives available; the authority to which they should make application; and if he will make a statement on the matter. [11946/99]

Section 47 of the 1999 Finance Act provides for the granting of a relief in respect of expenditure, incurred by an individual in the period 6 April 1999 to 31 December 2001, on the construction or refurbishment of owner-occupied residential accommodation in a qualifying rural area. The relief consists of an annual deduction from total income for tax purposes of an amount equal to, in the case of construction expenditure, 5 per cent and, in the case of refurbishment expenditure, 10 per cent of the expenditure incurred. The individual incurring the expenditure must be the first owner and occupier of the dwelling after the expenditure has been incurred. The relief available under the section may be claimed in each of the first ten years of the life of the dwelling following construction or refurbishment provided that the dwelling is the sole or main residence of the individual.

Expenditure on a house qualifies for relief provided the following conditions are satisfied: the site is wholly within the designated area; the premises is used solely as a dwelling; the total floor area is not less than 38 square metres and not more than 210 square metres; if it is not a new house provided for sale, there is in force a certificate of reasonable cost; it complies with any conditions laid down by the Minister for the Environment and Local Government in relation to standards of construction and the provision of water, sewage and other services; it complies with any conditions laid down by the Minister for the Environment and Local Government in relation to standards for improvements and the provision for water, sewage and other services.

Persons who wish to claim the relief in respect of qualified expenditure should apply to the Department of the Environment and Local Government for a certificate of reasonable cost in the case of self-build or a certificate of compliance in respect of qualified property purchased from a builder-developer. The application for a certificate of compliance can also be made by the builder-developer which is then passed on to the purchaser of the property. Persons who intend to carry out refurbishment-conversion work on qualified property must inform the Department of the Environment and Local Government prior to the commencement of such refurbishmentconversion work.
Application for the relief should be made to the taxpayer's Inspector of Taxes. Taxpayers who make their returns under self-assessment should claim their relief on their return of income in the appropriate year.
The Revenue Commissioners are in the process of preparing a comprehensive guide to the residential tax elements of the scheme. The guide will also detail the application process to be followed by taxpayers and it will be available in the near future.
Top
Share