Written answers

Thursday, 2 October 2014

Photo of Arthur SpringArthur Spring (Kerry North-West Limerick, Labour)
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63. To ask the Minister for Finance if he will provide a system of tax relief for homes that purchase house protection barriers to protect from flooding. [37477/14]

Photo of Michael NoonanMichael 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 protection barriers, 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 flood prevention works.

The Home Renovation Incentive, was introduced in Finance Act (No 2) 2013.  The Incentive came into operation on 25 October 2013 and will run until 31 December 2015.  It 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 by tax compliant contractors, on a homeowner's only or main residence.  The tax credit is granted over the two years following the year the work is carried out and paid for.

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 protection barriers.

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