James Bannon (Longford-Westmeath, Fine Gael)
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Question 517: To ask the Minister for Finance the reason a person (details supplied) in County Longford has been refused relief under section 23, despite being the first owner-occupier of the property concerned; and if he will make a statement on the matter. [33867/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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The relief to which the Deputy is referring is the owner-occupier relief under the Rural Renewal Scheme. I am advised by the Revenue Commissioners that a person claiming the relief must, among other requirements, be the first owner-occupier of the property in question. The scheme was not intended to be available to purchasers of properties acquired under tenant purchase arrangements with their local authorities.

From the information supplied, the taxpayer initially rented the property in June 2006 from Longford County Council and then subsequently in July 2008 purchased it outright. However, there appears to be no connection between the initial rent agreement and subsequent purchase agreement, other than the fact that one of the parties was common to both. On the basis of the relevant legislation, Longford County Council is regarded as the first owner of the property. Unfortunately, this means that the owner-occupier relief is not available to any subsequent purchaser.