Written Answers. - Urban Renewal Tax Incentives.
Richard Bruton
Ceist:
49
Mr. R. Bruton
asked the
Minister for Finance
whether he has satisfied himself that tax concessions under the urban renewal scheme provide sufficient incentive for refurbishment of buildings so as to secure preservation of architectural heritage.
I am satisfied that the current provisions of the tax code, including the urban renewal incentives, are conducive to the preservation of architectural heritage.
A general income tax relief is available, subject to certain conditions, for expenditure by an owner or occupier on the repair or restoration of a building determined by the Office of Public Works to be of intrinsic significant scientific, historical, architectural or aesthetic interest, provided reasonable access to the building is afforded to the public.
Section 4 of the Finance Act, 1989, provides for income tax relief on expenditure on the repair or restoration of houses in designated areas that are determined by the Office of Public Works to be of signficant scientific, historical, architectural, or aesthetic interest. The relief consists of an income tax deduction in respect of 25 per cent of such expenditure incurred in a year of assessment by an individual on such a house which is his sole or main residence, with a further 5 per cent allowable in each of the following five years, that is a total deduction of 50 per cent. I would also point out that mortgage interest relief is, of course, available, subject to the usual conditions, in respect of the purchase or repair of a taxpayer's principal or sole residence.
Expenditure incurred on the upkeep, including refurbishment, of commercial buildings, situated both in designated and non-designated areas, can qualify for tax relief. Under the normal expenses rules such expenditure may be allowable for tax purposes if incurred wholly and exclusively for the purposes of the trade or profession carried on in the building.
The main tax incentive under the urban renewal scheme which is of greatest significance in relation the preservation of architectural heritage is the owner-occupier allowance. This is an allowance for owner occupiers equal to half of the cost of construction or refurbishment of private dwellings.
