Revenue eBrief No. 010/25

15 January 2025

Living City Initiative

Tax and Duty Manual Part 10-13-01 contains guidance on the Living City Initiative (LCI) as provided for in Chapter 13 of Part 10 of the Taxes Consolidation Act 1997. The LCI is a scheme of property tax incentives which provides tax relief for qualifying expenditure incurred on the refurbishment and conversion of both residential and commercial properties located within the historic centres of Cork, Dublin, Galway, Kilkenny, Limerick and Waterford.

Qualifying expenditure incurred on refurbishment or conversion work carried out up to 31 December 2027 may qualify for tax relief under the LCI, subject to certain conditions.

The following updates have been included in the guidance:

• Where an individual making a claim under the Owner-Occupier element of the scheme first occupies the property as their sole or main residence on or after 1 January 2023 relief is available over 7 years at a rate of 15 per cent in the first six years and 10 per cent in the final year. An individual may also carry forward the relief which is unused in the 7 year period for up to 9 years after the year in which the claim is first made.
• Details on the interaction between funding available from local authorities to property owners under the Repair and Leasing Scheme, and relief available under the LCI.
• An update to reflect the revised De Minimis Regulation, Commission Regulation (EU) 2023/2831 of 13 December 2023 on the application of Articles 107 and 108 of the Treaty on the Functioning of the European Union to de minimis aid. The key requirements are that an undertaking may not receive more than €300,000 in State aid, from all sources subject to the de minimis regulations, in any three-year period. A declaration on the de minimis aid is also required by a claimant of the rented residential and commercial elements of the scheme when completing their tax return.