Bernard J. Durkan
Ceist:173 Mr. Durkan asked the Minister for Finance the number of locations for which section 23 incentives are available; and if he will make a statement on the matter. [5653/98]
Written Answers - Section 23 Reliefs.
Bernard J. Durkan
Ceist:174 Mr. Durkan asked the Minister for Finance whether it is proposed to extend section 23 or similar incentives to any further towns or villages; and if he will make a statement on the matter. [5654/98]
Bernard J. Durkan
Ceist:176 Mr. Durkan asked the Minister for Finance the number and location of towns and villages throughout Leinster which have previously benefited from or are benefiting from section 23 or other similar incentives; and if he will make a statement on the matter. [5656/98]
Bernard J. Durkan
Ceist:177 Mr. Durkan asked the Minister for Finance whether he proposes to extend section 23 or other similar benefits or incentives to any town or village in Leinster in the foreseeable future; and if he will make a statement on the matter. [5657/98]
I propose to take Questions Nos. 173, 174, 176 and 177 together.
Section 23 of the Finance Act, 1981 introduced reliefs which allowed a deduction from rental income of a portion of the capital cost incurred on the construction, conversion or refurbishment of a rental property by a person assessable under Case V. The purpose of the relief was to encourage the provision of reasonably priced rental residential accommodation. The reliefs were available nationwide until 31 March 1984 and in a restricted form until 31 March 1987. The section 23 reliefs were re-introduced by section 27 Finance Act, 1988 until end July 1992 in certain circumstances since when the reliefs have only been available within designated urban renewal areas, designated resort areas and certain off-shore islands.
The areas throughout the country where tax reliefs for the provision of rented residential accommodation (section 23 reliefs) are available are the Temple Bar and the Custom House Docks Area, areas designated under the 1994 urban renewal scheme (35 centres) and under the 1995 scheme of reliefs for the renewal and improvement of residential accommodation on certain islands (23 islands). In addition, these reliefs are available in designated resort areas under the pilot scheme for the renewal and improvement of certain resort areas (15 areas) provided,inter alia, that the accommodation is primarily used for letting to tourists and is occupied for no other purposes from April to October each year.
The centres designated under these schemes where the section 23 reliefs apply are set out in the attached Appendix. The 20 centres in Leinster where tax reliefs for the provision of rented residential accommodation are available are marked with an asterisk. * A separate list shows those 12 centres in Leinster where certain areas benefited from section 23 reliefs under the 1986 urban renewal scheme.
A new urban renewal scheme will be introduced with effect from 1 August 1998 under which the Minister for the Environment and Local Government will designate areas. The taxation details of the scheme are the subject of a Committee Stage amendment. In addition, a pilot rural renewal scheme will be introduced on Committee Stage of the Finance Bill for the upper Shannon region, including all of County Longford. Both of these schemes will have section 23 type incentives.
Appendix
The areas designated under the 1994 Urban Renewal Scheme where section 23 reliefs are available are in the following 35 centres (Asterisk denotes an area in Leinster):
Certain areas of the five county boroughs—
Dublin* (including the Temple Bar Area and the Custom House Docks Area), Cork, Limerick, Waterford and Galway.
In addition, parts of the following towns have been designated:
|
Athlone* |
Drogheda* |
Longford* |
Roscommon |
|
Ballina |
Dundalk* |
Mallow |
Sligo |
|
Ballinasloe |
Dungarvan |
Monaghan |
Tralee |
|
Bray* |
Ennis |
Mullingar* |
Tullamore* |
|
Carlow* |
Enniscorthy* |
Navan* |
Wexford* |
|
Castlebar |
Kilkenny* |
Nenagh |
Wicklow* |
|
Clonmel |
Killarney |
Newbridge* |
|
|
Cobh |
Letterkenny |
Portlaoise* |
Section 23 reliefs are available on 23 islands designated under the 1995 Scheme of Reliefs for the Renewal and Improvement of Residential Accommodation on Certain Islands:
In the administrative county of Cork: Bere, Clear, Dursey, Hare, Long, Sherkin, Whiddy.
In the administrative county of Donegal: Arranmore, Inishbofin, Inishfree, Tory.
In the administrative county of Galway: Inisbofin, Inisheer, Inishmaan, Inishmore.
In the administrative county of Limerick: Foynes.
In the administrative county of Mayo: Claggan, Clare, Inishbiggle, Inishcottle, Inishlyre, Inishturk.
In the administrative county of Sligo: Coney.
Section 23 type reliefs for tourist accommodation are available in 15 Areas Designated under the Pilot Renewal Scheme for the Renewal and Improvement of Certain Resort Areas:
|
Achill, County Mayo |
Courtown,* County Wexford |
|
Arklow,* County Wicklow |
Enniscrone, County Sligo |
|
Ballybunion, County Kerry |
Kilkee, County Clare |
|
Bettystown, Laytown and Mosney,* County Meath |
Lahinch, County Clare |
|
Salthill, County Galway |
|
|
Bundoran, County Donegal |
Tramore, County Waterford |
|
Clogherhead,* County Louth |
Westport, County Mayo |
|
Clonakilty, County Cork |
Youghal, County Cork |
Areas in Leinster designated under the 1986 Urban Renewal Scheme which qualified for Section 23 reliefs:
|
Carlow |
Tullamore |
|
Dublin (including Temple Bar and the Custom House Docks) |
Athlone |
|
Wexford |
|
|
Portlaoise |
Bray |
|
Longford |
Ballymun |
|
Drogheda |
Tallaght |
|
Dundalk |