Thursday, 12 December 2019

Questions (62)

Pat Deering

Question:

62. Deputy Pat Deering asked the Minister for Finance the cost in tax forgone of the living cities initiative. [52494/19]

View answer

Written answers (Question to Finance)

The Living City Initiative (LCI) (provided for in Finance Act 2013 and commenced on 5 May 2015) is a tax incentive aimed at the regeneration of the historic inner cities of Dublin, Cork, Galway, Kilkenny, Limerick and Waterford. The scheme provides income or corporation tax relief for qualifying expenditure incurred in refurbishing/converting qualifying buildings which are located within pre-determined 'Special Regeneration Areas' (SRAs).

There are three types of relief available:

1. Owner-occupier residential relief;

2. Rented residential relief; and,

3. Commercial/Retail relief.

The following table outlines the cost/uptake for all 3 elements of the scheme combined between 2013 and 2017 (the most recent year for which data are available).]

Year

No. of claimants

Max Tax Cost (€M)*

Amount claimed (€M)

2017

20

0.1

0.4

2016

15

0.2

0.5

2015

13

0.2

0.5

2014

N/A

0.1

0.2

2013

N/A

0.05

0.1

*assumed at 40% for IT and 12.5% for CT

Finally, as the Deputy may be aware, LCI was due to terminate on 5 May 2020 in accordance with its sunset clause. However, Finance Bill 2019 provides for an extension of the scheme until 31 December 2022. The rationale behind this decision is to allow time for a series of enhancements to the incentive (as provided for in Budget 2017) to take full effect.