Frances Fitzgerald
Ceist:244 Ms Fitzgerald asked the Minister for Finance the tax incentives and allowances available to investors in the Dublin docklands area; and if he will make a statement on the matter. [22691/98]
Written Answers. - Tax Incentives and Allowances.
Section 367 of the Taxes Consolidation Act 1997 provides for the designation of areas of the Dublin docklands area by order of the Minister for Finance for the purposes of some or all of the following tax incentives. Section 368 of the Taxes Consolidation Act 1997 provides for accelerated capital allowances for the construction or refurbishment of industrial buildings. The allowances consist of an initial allowance of 50 per cent and accelerated annual allowances up to 100 per cent. Section 369 of the Taxes Consolidation Act 1997 provides for accelerated capital allowances for the construction or refurbishment of commercial premises. The allowances are similar to those for industrial buildings. However, there is a provision to reduce them to a half in any case where a ministerial order designating an area as a qualifying area so specifies. Section 370 provides for double rent relief for the first ten years to lessees of such commercial or industrial buildings in qualifying areas. Section 371 provides for tax relief in respect of expenditure incurred by owner-occupiers on the construction or refurbishment of certain residential dwellings in qualifying areas. The relief consists of an annual allowance of 5 per cent for ten years in respect of construction expenditure and 10 per cent for ten years in respect of refurbishment expenditure.
However, section 30 of the 1998 Finance Act inserted as section 409A into the Taxes Consolidation Act 1997, limits the amount of capital allowances on industrial or commercial buildings that an individual passive investor can set off against non-rental income to £25,000 in any one year. This provision does not apply to owner-operators and corporate investors.