Last month saw the launch of the Living City Initiative by the Minister for Finance, Michael Noonan. The incentive focuses on the regeneration of the historic centres of six cities, Cork, Dublin, Galway, Kilkenny, Limerick and Waterford.

The scheme provides for tax relief for qualifying expenditure incurred on both residential and certain commercial refurbishment and conversion work carried out during the qualifying period, 5 years from the commencement of the initiative.

Under the residential element owner-occupiers can claim tax relief by way of a deduction from their total income of 10% per annum of qualifying expenditure over a 10 year period. To claim the relief the property must be the claimant’s sole or main residence.

The commercial element allows for tax relief over a 7 year period by way of an accelerated capital allowance of 15% of qualifying expenditure for each of 6 years and 10% in year 7. This relief only applies to the refurbishment or conversion of premises for the provision of retail and other services within the State. The maximum level of actual tax relief which can be obtained in respect of any individual project is capped at €200,000, and aggregate deductible expenditure on a project is calculated by reference to this amount.

Revenue has published an information leaflet on the scheme which may be helpful if you are advising clients or considering applying for tax relief under the scheme. This information leaflet is published on here.

The scheme is provided for in Part 10, Chapter 13 of the Taxes Consolidation Act 1997.