Dáil Éireann díospóireacht -
Thursday, 24 Jun 1999

Vol. 507 No. 1

Written Answers. - Tax Reliefs.

Ivor Callely

Ceist:

21 Mr. Callely asked the Minister for Finance the value of the tax concessions afforded to stately homes in private ownership under the tax reliefs provided over the period 1988 to 1998; the inspection procedures involved; and if he will make a statement on the matter. [16092/99]

Minister for Finance (Mr. McCreevy)

I am assuming that the Deputy is referring to the reliefs in respect of income tax or corporation tax provided by section 482 of the Taxes Consolidation Act, 1997 and in respect of capital acquisitions tax provided by section 39 of the Finance Act, 1978. A determination for the purposes of relief under section 482 also secured exemption for individual taxpayers from all the requirements of the residential property tax, including the requirement to make a return, for all years when the tax was in force.

I have been advised by the Revenue Commissioners that statistics in respect of the amount of income tax, corporation and residential property tax foregone under section 482 are not available in a manner which would enable a soundly based estimate of the costs of these reliefs. However, the Deputy will appreciate that the number of properties involved is small as only 118 determinations have been made by Revenue since the relief was introduced in 1982. I have been further advised that the volume of capital acquisitions tax foregone under section 39 of the Finance Act, 1978, in the period 1994-98 was £181,800. Prior to 1994, records in relation to section 39 were not maintained in a manner which would allow easy access to the specific information required.

Taxpayers are entitled to claim relief under section 482 when they have received determinations from both the Minister for Arts, Heritage, Gaeltacht and the Islands and the Revenue Commissioners. The determination to be made by that Minister is that the building is intrinsically of significant scientific, historical, architectural or aesthetic interest and the Revenue has to determine that the building either affords reasonable access to the public or is in use as a tourist accommodation facility.

The Minister for Arts, Heritage, Gaeltacht and the Islands has advised me that determinations are made by her under section 482 on the basis of an inspection of the building usually carried out by an architect. The Revenue Commissioners have indicated that they subject such cases to detailed examination before making a determination in respect of reasonable access. The availability of reasonable access on an ongoing basis is subject to examination under Revenue's audit programme and within the past two years Revenue has initiated a specific programme of audit inspections of these buildings.

Similarly, I have been advised that, before making a determination under section 39 of the Finance Act, 1978, in relation to capital acquisitions tax, the Revenue Commissioners seek written confirmation that the conditions for granting the relief are fully satisfied and also monitor public access by means of inspections under the specific capital acquisitions tax audit programme.

In general, on the basis of the information available to me I am satisfied that the legislation has been operating in accordance with the intention of the Oireachtas and has provided important assistance to the preservation of stately homes and to allowing public access to them.