Tony Gregory (Dublin Central, Independent)
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Question 273: To ask the Minister for Finance his views on tax incentives for family owner-occupier purchasers of apartments in areas of the inner city where apartments are currently being purchased exclusively by investors; if he will liaise with Dublin City Council on this matter; and if he will make a statement on the matter. [32844/06]

Brian Cowen (Laois-Offaly, Fianna Fail)
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In general, matters relating to housing and housing policy are a matter for the Minister for the Environment, Heritage and Local Government in the first instance. However, I would like to point out that the following tax incentives/reliefs are available to all owner occupiers when purchasing their homes irrespective of location or property type:

Mortgage interest relief with larger relief for first-time buyers;

Stamp duty exemption and relief for new houses bought by owner-occupiers;

Stamp duty relief for second-hand houses bought and occupied by first-time buyers;

Capital gains tax exemption for a person's principal private residence;

Dwelling house exemption for CAT purposes.

In addition, special tax incentives may still be available for the purchase of properties in certain designated areas under the urban, town and rural renewal schemes. In Budget 2006, following a major review, I announced the termination of a number of schemes including the urban renewal schemes. However, because of transitional provisions announced at the time owner occupiers may still be able to benefit from the urban renewal scheme in a limited number of developments which were already in the pipeline at the time the relief was terminated.

In such cases the owner occupier will still be able to avail of a tax allowance of 100% for expenditure on refurbishment of residential premises, available at 10% per annum for 10 years; 50% allowance for new-build construction expenditure, i.e. 5% per annum over 10 years against all income. Investors in properties located in urban renewal areas can obtain 100% relief only against Irish rental income for the construction or refurbishment of (or the conversion of a property into) rented residential accommodation.