Dan Boyle
Question:61 Mr. Boyle asked the Minister for Finance the numbers who are anticipated to benefit from the continuation of property based tax reliefs; and if he will make a statement on the matter. [30069/03]
Written Answers. - Urban Renewal Schemes.
I announced in budget 2004 the extension of the termination date, subject to certain conditions, to 31 July 2006 for the following property tax incentive schemes:
|
Scheme |
Previousterminationdate |
New termination date |
|
Urban renewal scheme |
31 December 2004 |
31 July 2006 |
|
Multi-storey car parks |
31 December 2004 |
31 July 2006 |
|
Student accommodation scheme |
31 December 2004 |
31 July 2006 |
|
Buildings used for third level purposes |
31 December 2004 |
31 July 2006 |
|
Hotels and holiday camps |
31 December 2004 |
31 July 2006 |
|
Holiday cottages |
31 December 2004 |
31 July 2006 |
|
Rural renewal scheme |
31 December 2004 |
31 July 2006 |
|
Town renewal scheme |
31 December 2004 |
31 July 2006 |
|
Park and ride |
31 December 2004 |
31 July 2006 |
|
Living over the shop |
31 December 2004 |
31 July 2006 |
It is difficult to estimate the number of people benefiting from these schemes generally as this is a factor primarily of the eventual take up of the various reliefs available under the schemes. In addition, information is not captured in the tax forms in a way that allows for a breakdown of capital allowances and thus an assessment of the cost and exact numbers of individuals and companies claiming under the individual schemes is not available.
Apart from this, other issues arise in estimating the numbers that may avail of such schemes. For instance, in the case of the capital allowances for qualifying commercial and industrial buildings which are available under some of the schemes, the nature of the writing down arrangements is such that relief in some cases will be available for up to 14 years after qualifying expenditure is incurred. In such cases if a property is sold within the first 13 years of first use, it is possible for the new owner to qualify for the capital allowances as these will be clawed back from the original owner. Therefore more than one individual, company or group of investors can have qualified for relief in respect of the same project by the time the relief available for that project is finally written off.
Additionally, where reliefs are available for owner-occupiers and lessors of qualifying residential property in relation to an area based tax scheme such as the urban, rural or town renewal schemes, the numbers of individuals availing of the reliefs will depend on the actual numbers purchasing qualifying residential units when such units become available in the market.
The announcement I made in budget 2004 in relation to the extension of the qualifying period for these reliefs to 31 July 2006 is intended to provide for an orderly winding down of the schemes and to relieve pressure on construction resources which was likely to build up as a result of the 31 December 2004 deadline. A number of representations were received from all parts of the country seeking additional time to complete projects which had been delayed for a variety of reasons. While it is true to say that additional individuals and companies may benefit as a result of the extended deadline, all of the schemes now include conditions, such as the receipt by the relevant planning authority of a completed planning application by 31 December 2004, to encourage progress to be made with a view to final completion of projects by the new 31 July 2006 deadline. For the same reasons as apply to estimating the number of individuals who benefit from the schemes generally, it is not possible to estimate the additional numbers who will benefit as a result of the extension of the December 2004 deadline to 31 July 2006.