Peter Burke (Longford-Westmeath, Fine Gael)
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213. To ask the Minister for Finance the position regarding the eligibility of a house for section 23 relief (details supplied); and if he will make a statement on the matter. [41070/16]

Michael Noonan (Limerick City, Fine Gael)
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Rented residential relief, referred to as Section 23 relief, is available to a person who has incurred expenditure on the purchase, construction, conversion or refurbishment of a qualifying property and who lets that property under a qualifying lease, having complied with certain conditions. Relief for expenditure incurred can be set against the rent received from that property and other Irish rental income so that the amount of a person's taxable income is reduced.

The administrative county of Longford is a qualifying area under the Rural Renewal Scheme for the purposes of section 23 relief.  Relief is only available for expenditure on construction, refurbishment or conversion work that is carried out during the qualifying period for the scheme.  The qualifying period for the Rural Renewal Scheme originally was extended to 31 December 2006 (from the end of 2004), where a valid application for full planning permission was submitted to the relevant local authority by 31 December 2004.  The qualifying period was further extended to 31 July 2008, subject to an additional requirement that work to the value of at least 15% of the actual construction, refurbishment or conversion costs must have been carried out by 31 December 2006.

Based on the information supplied, work on the construction of this property only commenced in 2007. Therefore, the additional requirement that work to the value of at least 15% of the actual construction costs must have been carried out by 31 December 2006 can not  be met.  In the circumstances  expenditure incurred on the property cannot qualify for section 23 relief.

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