The Living City Initiative (LCI), as outlined in the Tax and Duty Manual Part 10-13-01, offers valuable property tax incentives for refurbishing and converting residential and commercial properties in historic areas of Cork, Dublin, Galway, Kilkenny, Limerick, and Waterford. This initiative, detailed in Chapter 13 of Part 10 of the Taxes Consolidation Act 1997, is designed to encourage revitalization in these key urban centers.
Eligibility and Relief
Property owners can benefit from tax relief on qualifying expenses incurred for refurbishment or conversion projects that are completed by December 31, 2027, provided they meet specific criteria outlined in the guidance.
Recent Updates to the Initiative
Several important updates have been made to the LCI guidance, which property owners should note:
- Owner-Occupier Relief:
For individuals claiming under the Owner-Occupier element of the initiative, if they occupy the property as their primary residence after January 1, 2023, they can receive relief for a total of seven years. This relief is structured at a rate of 15% for the first six years and 10% in the final year. Notably, any unused relief within this period can be carried forward for up to nine years after the initial claim. - Local Authority Funding Interaction:
Clarifications have been provided regarding how local authority funding under the Repair and Leasing Scheme interacts with relief available under the LCI. This information is crucial for property owners looking to maximize their financial benefits. - De Minimis Regulation Update:
The guidance has been updated to include revisions to the De Minimis Regulation (Commission Regulation (EU) 2023/2831) effective as of December 13, 2023. Under these regulations, no entity can receive more than €300,000 in State aid from all sources over a three-year period. Claimants for the rented residential and commercial components of the scheme must also declare any de minimis aid received when filing their tax returns.
Conclusion
The Living City Initiative represents a significant opportunity for property owners looking to invest in the restoration and revitalization of historic urban areas. With the recent updates, property owners can now navigate the available relief measures more effectively, ensuring they maximize their investment and contribute to the heritage and economic vitality of their communities. For more information on the Living City Initiative and its benefits, property owners are encouraged to consult the detailed guidance provided through the Tax and Duty Manual.
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