Relief for Expenditure on Approved Buildings and Gardens in the State - IT 30

Introduction

Tax relief is available to the owner/occupier of:

  • an approved building (including surrounding garden)
  • an approved garden existing independently
  • an approved building existing indepenently

in respect of expenditure incurred on the repair, maintenance or restoration of the approved building or garden.

Quailfying expenditure is treated for tax purposes as if it were a loss in a separate trade carried on by that owner/occupier and the normal rules for giving loss relief apply. Unrelieved qualifying expenditure incurred in a particular year can be carried forward for a two year period.

Relief in respect of qualifying expenditure incurred in a chargeable period will be limited to the amount of the expenditure attributable to the actual work carried out during that chargeable period.

Structure of Relief

As outlined above, relief is provided from income tax and corporation tax to the owner/occupier of:

  • an approved building (including surrounding garden),
  • an approved garden existing independently, and
  • approved buildings in use as guest houses subject to certain conditions.

Additional relief up to an aggregate of €6,350 is provided in respect of the following items:

  • the repair, maintenance or restoration of approved objects in an approved building/garden provided the objects are on display for a period of at least two years from the year in which the expenditure is claimed (a separate leaflet IT56 - 'Relief for Expenditure on Approved Objects on display in an approved Building or Garden' , sets out the detailed rules in relation to approved objects)
  • the installation, maintenance or replacement of a security alarm system in the approved house/garden, and
  • the provision of public liability insurance for the approved building/garden.

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Approved Building/Garden

An approved building is one in respect of which determinations have been made:

  • by the Minister for Arts, Heritage and the Gaeltacht - that it is a building which is intrinsically of significant scientific, historical, architectural or aesthetic interest, and
  • by the Revenue Commissioners - that reasonable access to the building is afforded to the public.

An approved garden is one in respect of which determinations have been made:

  • by the Minister for Arts, Heritage and the Gaeltacht - that it is a garden which is intrinsically of significant horticultural, scientific,
  • by the Revenue Commissioners - that reasonable access to the garden is afforded to the public.

Reasonable access in the case of an approved building/garden

Revenue examine each individual case by reference to the criteria which must be met with regard to reasonable access. Reasonable access should be afforded to the public at reasonable times and in a reasonable manner, subject to any temporary closure necessary for repair, maintenance or restoration work.

Before making a determination in respect of public access the Revenue Commissioners must be satisfied that the following minimum requirements are met:

  • access to the whole or a substantial part of the building/garden must be available at the same time,
  • access is afforded for a period of at least 60 days in any one year including not less than 40 days (of which 10 days must be Saturdays or Sundays) during the period 1 May - 30 September inclusive, at reasonable times and in a reasonable manner, subject to any temporary closures necessary for repair, maintenance and restoration work,
  • the daily viewing times must be at least four hours,
  • the admission price, if any, must be reasonable so as not to preclude the public from seeking access to the building/garden,
  • opening times must be advertised in local or national papers, and
  • a sign must be erected outside the building indicating opening times.

In addition to meeting the Revenue Commissioners requirement regarding reasonable access set out above, claimants for tax relief must also advise Fáilte Ireland regarding access to the approved building/garden. This information is given to Fáilte Ireland on the understanding that it may be published by Fáilte Ireland or by another tourism body The information must be given to Fáilte Ireland by 1 November in the chargeable period in respect of which the claim is made and for the five subsequent chargeable periods.

After the determination is made, the Revenue Commissioners carry out checks annually to ensure that the level of public access indicated when the determination was made is continuing.

Also, the public access to buildings in respect of which relief has been claimed can be examined as part of a Revenue audit on the owner/ occupier of those buildings.

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Approved building in use as a guest house

The following conditions apply where the approved building is in use as a guest house:

  • the approved building must be in use as a guest house for at least six months of the calendar year - of which four months must be in the period 1 May - 30 September inclusive,
  • the owner/occupier must prove that he/she incurred the expenditure in respect of which the relief is being claimed,
  • the building must be registered or listed with Fáilte Ireland as a guest house, and
  • Fáilte Ireland must have been notified regarding the opening times of the guest house.

There is also provision whereby approved buildings can switch from qualification for relief under "reasonable access" to qualification under "guest-house" and vice versa without any clawback of relief.

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Claiming tax relief in respect of an approved building/garden

In order to qualify for relief in respect of an approved building, including where the building is in use as a guest house, the expenditure must be incurred on the repair, maintenance or restoration of the building or on the maintenance or restoration of any garden or grounds of an ornamental nature occupied or enjoyed with that building.

In order to qualify for relief in respect of an approved garden the expenditure must be incurred on the maintenance or restoration of the garden.

Tax relief is not available, however, where any such expenditure is otherwise allowable for tax purposes or in respect of sums recoverable by a claimant by a grant or reimbursement from any source.

A claimant is obliged to afford facilities at any reasonable time to authorised officers of the Department of Arts, Heritage and the Gaeltacht and of the Revenue Commissioners to inspect the approved building/garden or to examine the work in respect of which the expenditure to which the claim relates was incurred.

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Restriction of relief in the case of a passive investment scheme

This scheme whereby tax relief of up to €31,750 was available to individuals who incurred qualifying expenditure on an approved building, through participating in a passive investment scheme has been abolished with effect from the tax year 2010. Transitional arrangement are provided to ensure that relief will continue to be available for 2010 and 2011 in respect of work, which began after that date, but only where such work is carried out under a written contract, which was entered into on or before 4th February 2010.

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Limit to Relief for High Earners

Section 17 of the Finance Act 2006 introduced a new measure to limit the use of tax incentive schemes by high income individuals. Section 482 is one of the specified relief effected by this measure

Section 482 and Repayments

Section 137 Finance Act 2008 introduced a new measure to ensure that repayments arising as a result of claims for Section 482 relief for periods falling outside the general 4 year time limit for repayments may be allowed.

Clawback of the Relief

There is provision for either the Revenue Commissioners or the Minister for Arts, Heritage and the Gaeltacht to revoke a determination made where the conditions for granting such a determination cease to exist. Any relief granted to a claimant in the five year period immediately before the determination is revoked by the Revenue Commissioners will be clawed back.

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Further Information

Application forms for a determination by the Minister for Arts, Heritage and the Gaeltacht may be obtained from:

Department of Arts, Heritage and the Gaelacht,
Architectural Policy Unit,
Built Heritage & Architectural Policy Section ,
Newtown Road,
Wexford.

Telephone: 053 - 9117511/9117387
Fax: 053-9117603

Application for a determination that reasonable access is afforded to the public should be made to:

Office of the Revenue Commissioners,
Income & Capital Taxes Division,
1st Floor Stamping Building,
Dublin Castle,
Dublin 2.

Telephone: 01-6748011/7024101
Fax: 01-6799287

Application Forms:

Revenue: September 2011

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