Tax Reliefs Cost

Tuesday, 6 November 2012

Questions (217)

Seán Kenny

Question:

217. Deputy Seán Kenny asked the Minister for Finance the tax reliefs and breaks that remain open; the savings to the Exchequer if each tax relief and breaks were discounted; the number and savings to the Exchequer of the reliefs and breaks that were discounted in the past two years; and if he will make a statement on the matter. [47549/12]

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Written answers

Minister for Finance

As regards tax reliefs currently available, a comprehensive summary of these was provided recently in my reply to PQ 197 of 23rd October. As the Deputy will be aware, virtually all of the area-based and property tax incentive schemes have ended and this year’s Finance Act provided for a cap on property-based Accelerated Schemes (in line with the tax life of the particular scheme) to be introduced from 1 January 2015. Many reliefs were terminated at a date prior to period to which the Deputy refers, although in some cases transitional arrangements apply. However the reliefs that were terminated in the last two years are set out below along with the estimated annual Exchequer saving:

Relief	Amount
Rent relief (phased abolition)	€97 million
Patent royalty exemption	€50 million
Loans to acquire an interest in certain companies (phased abolition)	€49 million
Consanguinity relief for residential property	-
First time buyer’s relief	-
Low value properties (residential property below	-
€127k and non-residential property below €10k)	-
Purchase of new houses	-
Site to child relief	-
Estimate (combined)	€39 million
Trade Union Subscriptions	€26 million
Exemption that applies to the first 6 weeks of	-
Illness Benefit and Occupational Injury	€13 million
BIK exemption for employer provided childcare	€6 million
BIK (Benefit-in-kind) exemption on certain	-
Professional subscriptions	€5 million
Farm consolidation relief	€1 million
Approved Share Options Schemes	€0.5 million
Purchase of new shares by an employee	€0.3 million