Ciarán Lynch (Cork South Central, Labour)
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61. To ask the Minister for Finance if he has considered offering tax relief incentives to encourage householders and business owners to undertake flood prevention works to protect their premises from future weather events; and if he will make a statement on the matter. [7168/14]

Michael Noonan (Limerick City, Fine Gael)
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While there are no existing "direct" tax incentive schemes specifically relating to expenditure by property-owners on flood prevention works, there are a number of provisions in the Tax Acts which might, depending on the owner's circumstances and the nature of the work on which the expenditure is incurred, provide a measure of relief in respect of such expenditure.

The Home Renovation Incentive, introduced in the recent Finance Act, provides for tax relief for homeowners by way of a tax credit at 13.5% of qualifying expenditure incurred on repair, renovation or improvement work carried out on a homeowner's only or main residence. The Incentive runs to the end of 2015. However, where planning permission for qualifying works is required and is in place before 31 December 2015, any work carried out between 1 January 2016 and 31 March 2016 will qualify for the relief. Expenditure of a revenue nature and interest on borrowings incurred for the purposes of a trade may be deductible in computing taxable trading profits.

In relation to rental property, section 97(2)(e) of the TCA 1997 provides for a deduction in computing taxable rent in respect of interest incurred on borrowed money used to improve the property. (In the case of residential property, the deduction is restricted to 75% of the interest). Wear and tear allowances (generally 12.5% over 8 years) may be due in respect of capital expenditure incurred on the provision of machinery or plant for the purposes of a trade or in relation to the letting of furnished residential property.

I have no plans to introduce any specific measures in respect of flood prevention works.