Pearse Doherty (Donegal, Sinn Fein)
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310. To ask the Minister for Finance the estimated cost to the Exchequer of capital allowances on the purchase of residential property broken down by investment company, trade company and individual landlord; and if he will make a statement on the matter. [57150/25]

Paschal Donohoe (Dublin Central, Fine Gael)
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I am advised by Revenue that, in general, the capital expenditure incurred on the purchase of a residential property is not allowable for the purposes of capital allowances.

Previously, relief was available where a residential property came within the scope of the schemes collectively known as ‘Section 23 relief’. Section 23 relief was a tax relief that applied to rented residential property in a tax incentive area. It was available to a person who incurred expenditure on the purchase, construction, conversion or refurbishment of a qualifying property and who let that property, having complied with certain other conditions.

Section 23 type schemes were phased out throughout the 1990s and were terminated in 2008. Expenditure qualifying for relief under certain schemes could be incurred up to 31 July 2008, provided that certain conditions were fulfilled. While the period during which qualifying expenditure had to be incurred has ended Section 23 relief may still be applicable in relation to properties in these areas depending on when the properties were first let.

Further details on the terminated schemes for Section 23 reliefs are available on the Revenue website at:

www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-10/10-11-01.pdf.

The costs of Section 23 reliefs are available in the Cost of Tax Expenditures document:

www.revenue.ie/en/corporate/documents/statistics/tax-expenditures/costs-tax-expenditures.pdf.

I am advised by Revenue that, in relation to claims under these schemes, it is not possible to identify separately the amounts of individual claims which relate to the purchase of properties from the amounts of the claims which relate to other activities.

In relation to whether relief is claimed by a company or a natural person (Corporation Tax or Income Tax), I am further advised by Revenue that due to the low numbers of claimants and the requirement to protect taxpayer confidentiality, it is not possible to further break down the information in the Cost of Tax Expenditures document by tax head or claimant type.