I propose to take Questions Nos. 150 to 152, inclusive, together.
I am informed by the Revenue Commissioners that for the tax year 2003 and earlier years claims for tax incentive schemes on property were aggregated in tax returns with other claims and could not be distinguished from other reliefs claimed. Accordingly, the specific information on costs for 2003 and earlier years are not available.
Provisions were included in the Finance Act 2004 to allow this data to be obtained separately in subsequent years. The relevant information for 2004-2008 is available from the Revenue Statistical Reports which are accessible on the Revenue website at www.Revenue.ie. The information is located in Table IT6, under the main chapter heading of Income Tax.
I am informed by the Revenue Commissioners that the relevant information in relation to the maximum claim, minimum claim and the tax cost associated with the claims for tax relief allowed in respect of the different types of property related tax schemes for the years 2007 to 2009, the latest year for which this information is available, is as outlined in the following tables. This is based on personal income tax returns filed by non-PAYE taxpayers and corporation tax returns filed by companies for the years in question.
2007
|
Scheme
|
Tax Cost
|
Maximum Claim
|
Minimum Claim
|
|
€m
|
€m
|
€
|
|
Urban Renewal
|
109.3
|
See Note
|
1
|
|
Town Renewal
|
34.6
|
See Note
|
1
|
|
Seaside Resorts
|
8.0
|
0.5
|
1
|
|
Rural Renewal
|
48.6
|
See Note
|
1
|
|
Multi-storey car parks
|
9.6
|
See Note
|
1
|
|
Living over the Shop
|
3.0
|
0.5
|
3
|
|
Enterprise Areas
|
2.8
|
See Note
|
1
|
|
Park & Ride
|
1.4
|
0.6
|
1
|
|
Holiday Cottages
|
12.4
|
See Note
|
8
|
|
Hotels
|
118
|
See Note
|
1
|
|
Nursing Homes
|
18.3
|
See Note
|
531
|
|
Housing for the Elderly/Infirm
|
2.6
|
0.3
|
3,449
|
|
Hostels
|
0.7
|
0.6
|
4,047
|
|
Guest Houses
|
Negligible
|
Negligible
|
1
|
|
Convalescent Homes
|
0.5
|
0.1
|
381
|
|
Qualifying (Private) Hospitals
|
12.1
|
1.2
|
1,253
|
|
Qualifying Sports Injury Clinics
|
1.8
|
0.6
|
19,582
|
|
Buildings Used for Childcare Purposes
|
9.8
|
See Note
|
6
|
|
Mental Health Centres
|
Negligible
|
Negligible
|
See Note
|
|
Student Accommodation
|
42.0
|
See Note
|
1
|
2008
|
Scheme
|
Tax Cost
|
Maximum Claim
|
Minimum Claim
|
|
€m
|
€m
|
€
|
|
Urban Renewal
|
84.5
|
See Note
|
1
|
|
Town Renewal
|
23.7
|
See Note
|
1
|
|
Seaside Resorts
|
5.7
|
0.4
|
1
|
|
Rural Renewal
|
34.2
|
See Note
|
2
|
|
Multi-storey car parks
|
6.6
|
See Note
|
3,657
|
|
Living over the Shop
|
2.5
|
See Note
|
1
|
|
Enterprise Areas
|
2.5
|
0.3
|
1
|
|
Park & Ride
|
0.7
|
0.5
|
1
|
|
Holiday Cottages
|
10.8
|
0.6
|
44
|
|
Hotels
|
114.7
|
See Note
|
1
|
|
Nursing Homes
|
19.4
|
See Note
|
405
|
|
Housing for the Elderly/Infirm
|
3.0
|
0.3
|
134
|
|
Hostels
|
0.7
|
0.6
|
4,047
|
|
Guest Houses
|
0.1
|
0.1
|
7,538
|
|
Convalescent Homes
|
0.5
|
0.1
|
381
|
|
Qualifying (Private) Hospitals
|
12.3
|
0.8
|
11
|
|
Qualifying Sports Injury Clinics
|
1.5
|
0.3
|
5,852
|
|
Buildings Used for Childcare Purposes
|
12.0
|
See Note
|
1
|
|
Mental Health Centres
|
Negligible
|
See Note
|
See Note
|
|
Student Accommodation
|
22.7
|
See Note
|
1
|
2009
|
Scheme
|
Tax Cost
|
Maximum Claim
|
Minimum Claim
|
|
€m
|
€m
|
€
|
|
Urban Renewal
|
93.1
|
See Note
|
1
|
|
Town Renewal
|
18.3
|
0.7
|
1
|
|
Seaside Resorts
|
5.3
|
0.3
|
1
|
|
Rural Renewal
|
28.0
|
See Note
|
1
|
|
Multi-storey car parks
|
5.2
|
See Note
|
69
|
|
Living over the Shop
|
1.7
|
0.5
|
1792
|
|
Enterprise Areas
|
2.1
|
0.3
|
1100
|
|
Park & Ride
|
0.8
|
0.5
|
69
|
|
Holiday Cottages
|
13.9
|
See Note
|
210
|
|
Hotels
|
102.1
|
See Note
|
127
|
|
Nursing Homes
|
21.6
|
See Note
|
1
|
|
Housing for the Elderly/Infirm
|
2.8
|
0.4
|
783
|
|
Hostels
|
0.30
|
0.2
|
7240
|
|
Guest Houses
|
0.10
|
0.1
|
815
|
|
Convalescent Homes
|
0.5
|
0.2
|
381
|
|
Qualifying (Private) Hospitals
|
12.5
|
See Note
|
6418
|
|
Qualifying Sports Injury Clinics
|
1.5
|
0.2
|
14823
|
|
Buildings Used for Childcare Purposes
|
12.5
|
See Note
|
529
|
|
Mental Health Centres
|
Negligible
|
See Note
|
See Note
|
|
Student Accommodation
|
19.1
|
See Note
|
57
|
|
Registered Caravan Parks
|
0.2
|
See Note
|
See Note
|
|
Mid Shannon Corridor
|
0.2
|
0.5
|
15720
|
The estimated relief claimed has assumed tax forgone at the 41% rate in the case of individuals and 12.5% in the case of companies. The figures shown correspond to the maximum Exchequer cost in terms of income tax and corporation tax.
It should be noted that any corresponding data returned by PAYE taxpayers in the income tax return (Form 12) is not captured in the Revenue computer system. However, any PAYE taxpayer with non-PAYE income greater than €3,174 is required to complete an income tax return (Form 11).
Corresponding data cannot yet be provided for 2010 as the tax returns for this year are either not yet due or are still being processed.
The information provided in tax returns on the annual amounts of claims for property-based tax reliefs is not sufficiently detailed to provide a basis for deriving an estimate of the value of outstanding reliefs available under the various tax construction schemes. I am not therefore in a position to provide the information requested by the Deputy in this regard.
My Department produced a detailed Consultation Paper as part of an economic impact assessment of potential changes to the "legacy" property-based tax reliefs, which contains information on the profile of tax payers availing of such schemes. Based on preliminary data provided by the Revenue Commissioners the Paper, which is available on the Department of Finance's Tax Policy website www.taxpolicy.gov.ie, provides an analysis of claims and investor income levels including the table below, which shows the share of claims by tax unit within five income groupings.
|
Income level
|
2007
|
2008
|
|
Less than €100,000
|
43%
|
44%
|
|
€100,000 — €150,000
|
17%
|
18%
|
|
€150,000 — €200,000
|
11%
|
11%
|
|
€200,000 — €275,000
|
9%
|
9%
|
|
Greater than €275,000
|
20%
|
18%
|
Table: Percentage of claimants by income band
It is anticipated that the results of the impact assessment process will be available for consideration in the context of the forthcoming budget.
The Central Bank collates and analyses data on the mortgage market. I have been informed that they do not have this data according to tax relief status. Their Statistics Department does not collect the credit data at that level of breakdown. The only reliable breakdown available is owner-occupier versus buy-to-let (BTL) mortgages, and this is publicly available in the Central Bank's Financial Measures Programme Report published earlier this year and available on their website www.centralbank.ie.
In addition the Deputy might note that a number of these property-based schemes were reviewed by Indecon Economic Consultants and Goodbody Economic Consultants as part of the overall review of property and area based tax incentives in 2005. These reports were published on 6 February 2006 and are available on the Department of Finance's Tax Policy website.
Note:
Because of the Revenue Commissioners' obligation to observe confidentiality in relation to the taxation affairs of individual taxpayers, a figure for the highest and in some cases the lowest amount of relief claimed under some of the schemes is not provided. This is due to the small numbers of returns with amounts exceeding that level.
