Thursday, 17 April 2014

Questions (59)

Pearse Doherty

Question:

59. Deputy Pearse Doherty asked the Minister for Finance if he will list all the measures announced as part of budget 2013 or 2014 that are still awaiting EU approval. [18303/14]

View answer

Written answers (Question to Finance)

The following is a list of measures which were announced in Budget 2013 and Budget 2014 where EU approval has yet to be obtained. The Living City Initiative, announced in Finance Bill 2013, is a pilot project which provides certain tax incentives to make it more attractive for people to live in historic and culturally significant city centre houses. The initiative also offers incentives for retailers and small businesses in those areas. Budget 2014 extended the Living City Initiative to include residential properties constructed up to the end of 1914 in designated areas, and extended it to other cities Cork, Galway, Kilkenny and Dublin. This Initiative is subject to EU State Aid approval and a commencement order.

Finance Act 2013 introduced new provisions to ensure that Film Relief tax reliefs will accrue to the producers rather than investors and result in tax savings for the Exchequer. Budget 2014 extended the definition of 'eligible individual' to include non-EU talent, in conjunction with the introduction of a withholding tax. It is intended to commence this provision once EU State Aid approval has been given.

A capital gains tax relief for entrepreneurs who reinvest the proceeds from the disposal of assets made on or after 1 January 2010 in certain chargeable business assets was announced in Budget 2014 and provided for in Section 45 of Finance (No 2) Act of 2013. The section requires a Commencement Order, which has not been made.

Commencement of the legislative provisions is subject to EU state-aid approval. My Department is liaising with the European Commission to obtain this approval. It is not clear how long this process will take. However, my Department is endeavouring to obtain this approval in as timely a manner as possible.

Budget 2014 - The exemption from stamp duty on any conveyance or transfer of stocks or marketable securities admitted to the Enterprise Securities Market operated by the Irish Stock Exchange plc (S86A of the Stamp Duties Consolidation Act 1999 as inserted by s70 of the Finance (No. 2) Act 2013) is subject to a commencement order pending EU approval.

The tax scheme for the construction or refurbishment of certain aviation services facilities as provided for in Finance Act 2013 is subject to EU approval. We are in discussions with the Commission regarding same.