Living Cities Initiative

Living Cities Initiative (LCI)

Provided by The Irish Government

Overview of the Living Cities Initiative

The Living City Initiative (LCI) is a tax incentive scheme to encourage people to live in historic inner-city areas of 6 key cities around Ireland. It works by allowing a property owner to claim increased tax relief for refurbishment or conversion of residential property, either as income tax relief (for owner-occupied residences) or capital allowance (for rented residences).

Costs that can be covered as part of this scheme include structural repairs, upgrading internal and external elements such as windows, doors, kitchens and bathrooms as well as the cost of converting existing properties for residential use.

Eligibility Criteria for the Living Cities Initiative

Applicants qualify for the Living Cities Initiative if:

• The property is located within a designated 'Special Regeneration Areas' (SRA). A map of specific SRAs can be found on the Local Council website.
• The property has been built before 1915 (residential).
• Costs of the works being carried out are between €5,000 and €200,000.
• All works to the property comply with the planning and building regulations,
• Works will be completed by 31st December 2027.
• The property, once the works have been completed will be occupied immediately.

Benefits of the Living Cities Initiative

One of the benefits of the Living Cities Initiative is that it makes buying and refurbishing a property more affordable. It also makes urban properties in need of repair more accessible and sustainable. And, for those with sustainability in mind, this scheme promotes the reduction of construction waste as well as the demand for new construction materials.

Important Things to Note

Before intended applicants start the application process, there are a number of important aspects, worth noting. Firstly, the Living Cities Initiative provides tax relief for a set period of time and there is no claw-back of relief if the property is sold within ten years.

Secondly, the scheme is only available for properties within designated inner-city areas of 6 cities and there is a minimum cost of works of €5,000.

Furthermore, relief cannot be claimed on any legal or professional fees, or Stamp Duty. Finally, if a grant application is successful, works to the property must be complete before applying for tax relief.

How to Apply for the Living Cities Initiative:

Many applications fail because the application form hasn't been completed properly. It makes sense for  applicants to take their time and get this right!

There are 5 steps to making a successful application:

1: Before Appling:

• • Before applying for the LCI, make sure you know exactly what work you plan to carried out on the property.
  • If planning permission is required for the works, ensure you apply for and receive planning permission before you submit your application since you will need to quote the Planning Reference Number, on the application form.
  • Prepare and have ready a detailed description and plan for the works along with a full breakdown of costs to complete the works.

2: Preparing Your Application

• • You can apply for The Living Cities Initiative either on line or by post.

3: Begin the Application Process and Apply for a Letter of Certification:

• • The first step in the Living Cities Initiative application process is to apply to the Local Authority for a Letter of Certification.
  • You can access this form on the Local Authority website where you can complete it on line or download and submit it by post.
  • The Local Authority will confirm receipt of the application and provide a Unique Reference Number (URN). You should make sure to include this URN in all correspondence with the Local Authority.
  • Only when you receive the URN should works be started on the property.
  • The Local Authority will issue the Letter of Certification once you notify them that the planned works to the property are complete.

4: Completion of Work:

• • Once the work to the  property is complete, you can request the Letter of Certification by writing to the Local Authority, quoting the URN, confirming completion of the works and their cost.

5: Apply for Tax Relief:

• • Upon receiving the Letter of Certification you will need to confirm that the property is being used as the main residence.
  • When this final step is complete, you can submit the application for your tax relief.

Special Conditions:

There are a number of conditions that applicants need to be aware of:

• The property must be used as the a main residence before claiming the relief.
• Relief can be claimed over ten consecutive years, starting from the year the property is first used as the applicants main residence.
• Moving without selling within the ten-year period can affect the claim.
• Relief does not pass on death or as part of an inheritance.
• Relief is not clawed back if the property is sold within ten years.
• Only the first owner-occupier of a converted or refurbished property can claim relief.
• If the property is sold after works, the new owner must apply for the tax relief.

The Living Cities Initiative is a forward-thinking scheme aimed at promoting urban regeneration, improving housing standards, and preserving architectural heritage. While it has specific conditions, it appeals to those seeking environmentally sustainable solutions and alternatives to new construction, contributing to waste reduction and historic property preservation.

Living City Initiative (LCI)

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