Thursday, 12 December 2019
Department of Finance
Living City Initiative
The Living City Initiative (LCI) (provided for in Finance Act 2013 and commenced on 5 May 2015) is a tax incentive aimed at the regeneration of the historic inner cities of Dublin, Cork, Galway, Kilkenny, Limerick and Waterford. The scheme provides income or corporation tax relief for qualifying expenditure incurred in refurbishing/converting qualifying buildings which are located within pre-determined 'Special Regeneration Areas' (SRAs).
There are three types of relief available:
1.Owner-occupier residential relief;
2.Rented residential relief; and,
The following table outlines the cost/uptake for all 3 elements of the scheme combined between 2013 and 2017 (the most recent year for which data are available).]
|Year||No. of claimants||Max Tax Cost (€M)*||Amount claimed (€M)|
*assumed at 40% for IT and 12.5% for CT
Finally, as the Deputy may be aware, LCI was due to terminate on 5 May 2020 in accordance with its sunset clause.However, Finance Bill 2019 provides for an extension of the scheme until 31 December 2022. The rationale behind this decision is to allow time for a series of enhancements to the incentive (as provided for in Budget 2017) to take full effect.