Ciarán Lynch (Cork South Central, Labour)
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Question 75: To ask the Minister for Finance the tax reliefs currently applicable to housing and property; the amount of tax that has been forgone in each year since the introduction of each relief; and if he will make a statement on the matter. [37010/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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I assume what the Deputy had in mind in his question refers primarily to the various area and sectoral property based tax incentive schemes provided for in the tax code.

There are only 2 such schemes still remaining; relief for Qualifying Specialist Palliative Care Units (subject to a Commencement Order) and the Mid-Shannon Corridor Tourism Infrastructure Scheme. Tax relief in respect of investment in Convalescent Homes, Qualifying (Private) Hospitals, Qualifying Mental Health Centres, Registered Nursing Homes and Qualifying (Nursing Home) Residential Units was abolished in the Supplementary Budget and Finance Bill 2009. Tax relief in respect of investment in buildings used for childcare purposes was terminated in the Finance Bill 2010. Apart from these schemes, all other property based tax incentive schemes have been terminated on, or before, 31 July 2008.

I am informed by the Revenue Commissioners that the relevant information available on the cost to the Exchequer of each of the property based tax reliefs is based on personal income tax returns filed by non-PAYE taxpayers and corporation tax returns filed by companies for the years 2004 to 2008, the latest year for which this information is available. These are set out in the following table. The figures are composite costs for both commercial and residential property reliefs.

Costs to the Exchequer of each Property based Tax reliefs

I am informed by the Revenue Commissioners that for the tax year 2003 and earlier years claims for tax incentive schemes on property were aggregated in tax returns with other claims and could not be distinguished from other reliefs claimed. Accordingly, the specific information on costs for 2003 and earlier years are not available.

I should also point out that the provisions of section 23 Finance Act 2010 severely curtails the amount of tax reliefs that can be used to reduce the income tax liability of those on high incomes. These provisions ensure that, in addition to the income levy, those with high incomes and using reliefs will have an effective income tax rate of about 30%. This measure applies to a list of specified reliefs, including most of the area and sectoral based property incentive schemes, the use of all of which has been curtailed as a result of this change.