Jim O'Keeffe (Cork South West, Fine Gael)
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Question 142: To ask the Minister for Finance the property based tax reliefs for which no termination date has been set; and if he has requested any reviews of these or other reliefs by the Revenue Commissioners in the context of the forth coming Budget and Finance Bill. [33154/06]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I presume that the Deputy is referring to the special property-based tax reliefs such as the area-based schemes and those covering various social facilities in areas such as health and education. In Budget 2006, following a major review of existing tax reliefs involving both internal reviews and the employment of outside consultants I announced the termination, subject to certain transitional provisions, of the following reliefs; the urban renewal, town renewal and rural renewal schemes, and the special reliefs for hotels, holiday cottages, student accommodation, multi-storey car parks, third-level educational buildings, sports injuries clinics, developments associated with park and ride facilities and the general rental refurbishment scheme.

In line with the recommendations of the consultants, I retained the tax reliefs available for private hospitals, convalescent homes, registered nursing homes and childcare facilities. Finance Act 2006 introduced a new scheme for mental health centres but this has not yet been commenced.

In addition to the special property-based tax schemes covered by last year's reviews, Section 268 of the Taxes Consolidation Act 1997 provides for capital allowances for a range of types of buildings, e.g. factories, market gardening, airports, dock facilities. However, these should be regarded as normal for the buildings or structures involved and not as a special incentive scheme with a specified termination date.

The operation and impact of all tax reliefs are monitored and/or subject to review on an ongoing basis as part of the normal work of my Department and the Revenue Commissioners. For example, the Revenue Commissioners have been carrying out a review of the operation of VAT on property and my Department, in conjunction with the Revenue Commissioners, is examining the operation of the BES and Seed Capital schemes, which terminate this year unless renewed. However, given the recent completion of a major review of existing tax relief schemes I have not, at this stage, requested the Revenue Commissioners to carry out any reviews of the continuing or other property-based schemes in the context of the forthcoming Budget and Finance Bill.