Written answers

Tuesday, 12 December 2006

11:00 am

Photo of Róisín ShortallRóisín Shortall (Dublin North West, Labour)
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Question 222: To ask the Minister for Finance the tax allowances and reliefs currently allowed for the building of park and ride facilities; the maximum allowed per building project; if a rate per parking space applies; the criteria attached to awarding such allowances; the cost to the Exchequer of such allowances in each of the years in this century; the number of parking spaces provided under such allowances in each of these years; the number of projects that availed of these allowances in each of these years; the details of projects by location; and if he will make a statement on the matter. [42263/06]

Photo of Brian CowenBrian Cowen (Laois-Offaly, Fianna Fail)
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A scheme of tax relief in the form of capital allowances has been available since 1 July 1999 aimed at encouraging the establishment of park and ride facilities in larger urban areas. In addition to park and ride facilities, the scheme made provision for allowances in respect of expenditure incurred on certain commercial premises and residential accommodation to be located at park and ride facilities subject to certain limits. Entitlement to relief is dependent on local authority certification that a park and ride development meets detailed requirements set out in Guidelines drawn up by the Minister for the Environment, Heritage and Local Government.

Capital allowances are available for expenditure on the construction or refurbishment of a park and ride facility. The rate at which the expenditure can be written off depends on whether the person claiming the allowances is operating the park and ride facility or leasing the facility to an operator. An owner-operator can claim allowances of up to 100% in a single year while a lessor can claim allowances of up to 50% in a single year. Any remaining expenditure can be written off at the rate of 4% per annum.

Apart from some restrictions on relief applying to commercial premises and residential accommodation at a park and ride facility, there is no limit on the amount of construction or refurbishment expenditure that can qualify for tax relief. There is no provision for a maximum amount per parking space provided. However, the guidelines stipulate that a park and ride facility must provide a certain minimum number of parking spaces if it is to be a qualifying park and ride facility for tax relief purposes.

Although there have been a number of planning approvals granted by local authorities in respect of park and ride facilities, there has been limited take up of this scheme with only two certified projects proceeding since 1999. I have no details available to me about these certified projects.

I am informed by the Revenue Commissioners that for the tax year 2003 and earlier years claims for the relief mentioned in the question were aggregated in tax returns with other claims and could not be distinguished from the reliefs claimed in respect of different schemes. Accordingly, the specific information on costs for 2003 and earlier years is not available to Revenue. Provisions were included in the Finance Act 2004 to allow this data to be obtained separately for the tax years 2004 et seq. Based on the information that has been received and collated to date in respect of the tax year 2004, a total of approximately €0.3 million was included in the relevant income tax returns for that year as claims relating to the park and ride scheme. This figure would correspond to a maximum Exchequer cost for 2004 of some €0.1 million in terms of income tax forgone. These figures are preliminary estimates and may change as further returns are processed.

Data for the tax years 2005 and 2006 is not yet available as the income tax returns for those years are due for filing in October 2006 and October 2007 respectively. The income tax returns for 2005 which have been received since October 2006 have yet to be processed.

Like other property incentive schemes, the park and ride scheme has been extended on a number of occasions but is due to end on 31 July 2008. This extended deadline applies where a valid application for full planning permission was received by the relevant local authority by 31 December 2004 and work to the value of at least 15% of the actual construction or refurbishment costs is carried out by 31 December 2006. Any expenditure incurred up to 31 December 2006 will qualify for full tax relief. However, any expenditure incurred during 2007 or between 1 January 2008 and 31 July 2008 is restricted to 75% and 50% relief, respectively.

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