Vol. 554 No. 5
437 Mr. Cregan asked the Minister for Finance the situation in relation to a family buying a house which is lying empty for a reported 25 years and which needs extensive upgrading; and if there is tax relief for such expenditure. [16972/02]
Tax relief is available on interest paid in respect of any loan used to fund the purchase, improvement or repair of an individual's principal private residence. As of 1 January 2002 the relief is given at source by the various financial institutions.
Where the property is situated in an area designated for special incentives, such as the urban renewal, town renewal or the rural renewal schemes – upper Shannon region – and the individual is an owner occupier, certain tax relief is allowable in respect of eligible expenditure incurred on refurbishment.
The property must comply with the requirements relating to floor area applicable to the relevant scheme and be in receipt of a certificate of reasonable cost from the Department of the Environment and Local Government in relation to the expenditure on refurbishment. The relief applies to qualifying expenditure incurred on work carried out during the qualifying period in relation to the particular incentive area. The rural renewal scheme is due to expire on 31 December 2004 and the town renewal scheme on 31 December 2003. The urban renewal scheme expires on 31 December 2002 but can be extended in certain circumstances to 31 December 2004. To qualify for the extended period for the urban renewal scheme the relevant local authority must issue a certificate to the person refurbishing the property on or before 30 April 2003 certifying that the authority is satisfied that at least 15% of the expenditure on refurbishment was incurred by 31 December 2002.
In the case of refurbishment expenditure, the relief is 100% of the allowable expenditure allowed at the rate of 10% per annum for ten years.
