The 2006 Budget introduced a new section into the 1997 Taxes Consolidation Act which enables donors of properties to the Irish Heritage Trust to avail of a new tax relief of up to €6m each year.
Section 23 amends Schedule 26A to the Taxes Consolidation Act 1997 which is concerned with tax relief for donations to approved bodies. The provision will allow the Trust to be designated for that purpose by the Minister for Finance, so that, subject to the normal requirements of section 848A of the Taxes Consolidation Act 1997, tax relief can be obtained in respect of donations to the Trust without the three-year waiting period for new charities.
Section 73 amends section 606 of the Taxes Consolidation At 1997. Section 606 gives relief from CGT on the disposal of certain works of art where prior to the disposal they were on loan to and displayed in an approved gallery of museum. The minimum period of loan is increased from six to 10 years and the section will also apply to such loans to the Irish Heritage Trust.
Section 115 amends section 77(3) of the Capital Acquisitions Tax Consolidation Act 2003 which provides for a clawback of the exemption granted to heritage objects comprised in a gift or inheritance if sold within six years after the valuation date of the gift or inheritance. The clawback does not apply if the objects are sold by private treaty to a qualifying body. The Irish Heritage Trust is listed as a qualifying body.
Section 122 introduces a new section - section 1003A - into the Taxes Consolidation Act 1997 to provide for a new scheme of tax relief for heritage property donated to the Irish Heritage Trust and will take the form of a payment on account of an amount equal to the value of the property against the person's tax liabilities. The taxes to which the measure will apply are income tax, corporation tax, capital gains tax, gift tax and inheritance tax and may relate to past, present and future liabilities. To qualify for relief, the heritage property will have to be approved by the Minister for the Environment, Heritage and Local Government by reference to the criteria set out in the section.
There will be a ceiling of €6 million on the aggregate value of the heritage properties that can be approved in any one year. The Revenue Commissioners will publish in their annual report each year descriptions and values of the heritage properties in respect of which relief is given under each section.
