Revenue Tax Briefing

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Revenue Tax Briefing Issue 41, September 2000

Town Renewal Scheme

A total of 100 towns around the country have now been designated as areas for tax incentives under the Town Renewal Scheme. The designations were based on Town Renewal Plans submitted by county councils and in line with recommendations made by a special Expert Advisory Panel. Details of the designated towns are available from the Department of the Environment and Local Government’s website at www.environ.ie

The scheme is being introduced in two phases. The residential tax incentives will apply with effect from 24 July 2000 and the commercial incentives will be introduced following approval by the EU Commission under State Aid rules.

A summary of the residential tax incentives is shown in the chart below. A booklet outlining details of the residential tax incentives will be available in Nov/Dec 2000.

Residential Development

New Construction: 50% of eligible construction costs allowed at the rate of 5% per annum over 10 years against total income

Owner-Occupier

Refurbishment: 100% of eligible construction costs allowed at the rate of 10% per annum over 10 years against total income

Investor/Lessor

“Section 23” relief: 100% of eligible construction refurbishment or conversion costs may be set against Irish rental income (including income from other lettings)