Noel Ahern (Dublin North West, Fianna Fail)

This tax incentive scheme was introduced in 2001 and is strictly governed by the statutory requirements of the Finance Acts of 1998 and 2001. This scheme involves certification of compliance with the scheme conditions, as opposed to the issue of a grant.

The main aims of the scheme are as follows: to apply an integrated package of tax relief to secure investment and tackle the problem of vacant upper storey space over commercial premises in certain streets in the five borough areas of Cork, Dublin, Galway, Limerick and Waterford; to provide additional residential units in such areas; to achieve greater economic use of such premises with a view to relieving the pressure on housing supply, particularly for rented residential accommodation; to promote sustainable development patterns and assist in fostering a "living" urban environment in the targeted areas; and to promote more sustainable use of existing building stock and infrastructure and relieve pressure for green-field development. The tax relief is based on expenditure incurred by applicants on the construction or renovation of property which is located in these designated areas.

A certificate of reasonable cost issues where the house meets the conditions and standards specified by my Department which requires, inter alia, that the floor area is not less than 38 sq. m. and not more than 125 sq. m. and the construction complies with the building regulations. Such a certificate alone does not certify that applicants are entitled to tax relief, as entitlement depends on compliance with other requirements of the relevant tax legislation. However, a certificate of reasonable cost or compliance is required as evidence of expenditure by the inspector of taxes where a tax relief application is made.

My Department received an application for a certificate of reasonable cost under the living over the shop scheme, in respect of the property mentioned at Usher's Quay, Dublin 8, on 4 July 2005.