The Finance Bill has introduced changes in the tax incentives available to owner-occupiers in the Rural Renewal tax area, which includes Longford, Leitrim, parts of Cavan, Roscommon and Sligo. The amendments allow expenditure on the refurbishment of owner-occupied housing to be set off against the home-owner's total income at a rate of 10 per cent a year. A similar relief for construction expenditure at the rate of 5 per cent per annum over 10 years has also been introduced. The minimum lease period for rented residential relief has been reduced from 12 to three months. The maximum size area for accommodation has been increased to 140 sq mtrs for newly built properties and to 150 sq mtrs for refurbishment. The Bill also includes jetties and moorings as qualifying structures for capital allowance purposes.

The residential tax reliefs for the Rural Renewal area were introduced last June and the amendments have to be notified to the EU Commission.

Capital expenditure on commercial and industrial buildings at Dublin's Custom House Docks area will qualify for capital allowances where the expenditure is incurred before December 31st next.

The Finance Bill also allows that where 51 per cent of the capital expenditure on such a project is incurred by the end of the year, capital allowances can also apply to expenditure on buildings up to June 30th, 2000. The normal urban renewal reliefs for the construction or refurbishment of owner-occupied and rented residential housing will apply to such expenditure incurred up to the end of 1999. EU approval is not needed for these reliefs.