Dáil Éireann Debate, Thursday - 2 October 2014
62. Deputy Arthur Spring asked the Minister for Finance if there is any tax relief available for coastal protection work to be carried out for persons to protect a private dwelling home; or his plans for it to be put in place. [37471/14]
Amharc ar fhreagraWhile there are no existing "direct" tax incentive schemes specifically relating to expenditure by property-owners on coastal protection works, there are a number of provisions in the Tax Acts which might, depending on the owner's circumstances and the nature of the work on which the expenditure is incurred, provide a measure of relief in respect of such expenditure.
The Home Renovation Incentive, was introduced in Finance Act (No 2) 2013. The Incentive came into operation on 25 October 2013 and will run until 31 December 2015. It provides for tax relief for homeowners by way of a tax credit at 13.5% of qualifying expenditure incurred on repair, renovation or improvement work, carried out by tax compliant contractors, on a homeowner's only or main residence. The tax credit is granted over the two years following the year the work is carried out and paid for.
Expenditure of a revenue nature and interest on borrowings incurred for the purposes of a trade may be deductible in computing taxable trading profits.
In relation to rental property, section 97(2)(e) of the TCA 1997 provides for a deduction in computing taxable rent in respect of interest incurred on borrowed money used to improve the property. (In the case of residential property, the deduction is restricted to 75% of the interest).
Wear and tear allowances (generally 12.5% over 8 years) may be due in respect of capital expenditure incurred on the provision of machinery or plant for the purposes of a trade or in relation to the letting of furnished residential property.
I have no plans to introduce any specific measures in respect of coastal protection works.
