asked the Minister for Finance if he will give figures which indicate the cost to the Exchequer in tax forgone in the current year in respect of section 23 houses and flats; and if he will indicate the number of such dwellings in respect of which relief has been given.
Written Answers. - Section 23 Houses Tax Loss.
65.
Sections 23 and 24 of the Finance Act, 1981, introduced a tax relief which allowed the cost of providing certain rented accommodation to be set off against a person's total rental income. The scope of that relief was restricted by sections 29 and 30 of the Finance Act, 1983, in relation to construction expenditure incurred between 31 March 1984 and 31 March 1987, in that the relief could only be offset against the rental income arising from the actual premises qualifying under section 23. Section 27 of the Finance Act, 1988, reintroduced the relief granted under sections 23 and 24 with effect from 27 January 1988. The relief under the 1988 Act can be set against all rental income and is due to expire on 31 March 1991.
The latest relevant statistics available are in respect of the tax relief allowed under the original sections 23 and 24 during the course of the income tax year 1987-88. In that year claims for relief were allowed in 571 cases at an estimated cost to the Exchequer of £2.9 million. The statistics available do not enable the number of dwellings involved in these claims to be estimated.