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.