Living City Initiative

The Living City Initiative is a scheme of property tax incentives which applies to certain "special regeneration areas" in the centres of Dublin, Cork, Limerick, Galway, Waterford and Kilkenny. These areas have been designated by Order of the Minister for Finance. The scheme provides for tax relief for qualifying expenditure incurred on both residential and certain commercial refurbishment and conversion work that is carried out during the qualifying period (5 years from the day this provision was commenced by Order of the Minister for Finance).

The residential element provides tax relief for owner-occupiers, by way of a deduction from their total income, of 10% per annum of qualifying expenditure over a 10 year period and is only available where the property is the claimant’s only or main residence.

The commercial element provides for tax relief over a 7 year period by way of an accelerated capital allowance of 15% of qualifying expenditure for each of 6 years and 10% in year 7. This element of the relief applies only to the refurbishment or conversion of premises for the provision of retail or other services within the State. The maximum level of actual tax relief which can be obtained in respect of any individual project is capped at €200,000, in accordance with EU State Aid rules.

A new Living City Initiative leaflet which sets out details of the scheme is available on the Revenue website. A new Tax and Duty manual Part 10-12-02 also refers.

05 May 2015