Tax breaks for heritage properties

The new Irish Heritage Trust through which the State will acquire heritage properties in return for significant tax breaks, is to be formally launched by Minister for Environment Dick Roche today.

Mr Roche will also announce the full board membership of the trust which includes representatives of the Irish Georgian Society, the Irish Landmark Trust, bankers, conservationists and developers.

An Taisce which styles itself The National Trust for Ireland is not represented on the board.

Mr Roche will legally establish the trust in Russborough House, Co Wicklow, a mid-18th century Palladian mansion, credited with some of the most exceptional baroque plasterwork in the country.

The new Heritage Trust will have a mandate to acquire heritage properties which are at risk and provide for their preservation, maintenance, enjoyment and appreciation by the public.

The trust will operate as a registered charity and the State will offer tax breaks to donors of properties to the trust. The amount of tax relief available in any year is limited to €6 million.

Funding of €5 million is to be provided this year to enable endowment funds to be set up by the trust. Each property acquired by the trust will be accompanied by an endowment fund to cover its conservation and maintenance costs. A further €0.5 million is being provided to cover the establishment and initial running costs of the trust. The trust is to have a strongly commercial and public service ethos and it is envisaged that each property would generate revenue either to support the endowment or the trust generally.

The trust will have the role of identifying properties for acquisition and the Minister for the Environment will have to be satisfied that the properties acquired are of sufficient heritage value.

A new scheme of tax relief for donated heritage property will apply to a person who makes a gift of heritage property to the trust.

It 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, current and future liabilities.

Tax relief on donations to the trust can be obtained without the usual three-year waiting period for new charities.

Relief from Capital Gains Tax will also be available to owners of certain works of art where those works have been lent to the trust for 10 years prior to sale.

In addition, certain clawbacks arising from exemptions of Capital Acquisitions Tax, which apply when items are sold within six years of acquisition, will not apply where heritage items are sold to the trust.

The Minister will also have to be satisfied, on the basis of independent financial advice, that the endowment and other supports for each property are sufficient to conserve, maintain and present them for public access.

A headquarters of the trust has not yet been decided but it is thought it may be Russborough House, owned by the Beit Foundation. The house has been the beneficiary of multi-million euro grant aid from the department in recent years.

Chairman Sir David Davies: Was also chairman of the steering group to advise the Minister on establishing the trust. Associated with the British Tory party, he is a banker and businessman of international repute. He was instrumental in sponsoring the report: A Future of Irish Historic Houses? A Study of 50 Houses.

Other members of the steering group who have now been appointed directors are:

Desmond FitzGerald, Knight of Glin: Current president of the Irish Georgian Society and one of the authors of the Vanishing Country Houses of Ireland (1988). A noted art historian.

Samantha Leslie: One of the owners and manager of Castle Leslie, Glaslough, Co Monaghan, she reunited the castle and fragmented lands under a family trust.

Seán Mulryan (Ballymore Properties): Guided Ballymore from being a single house builder in Wicklow to an international development company with 28 regeneration projects throughout Europe.

Carmel Naughton: chairwoman of the Board of Governors and Guardians of the National Gallery of Ireland from 1996 to 2002.

Nobby O'Reilly: the chief executive of Pierse Contracting. he is currently president of the Construction Industry Federation.

The following directors have now also been appointed: James Osborne: a consultant solicitor and former managing partner with A&L Goodbody, solicitors, he has served on a number of boards including Bank of Ireland plc, Ryan Holdings plc, and he is chairman of Newcourt Group plc.

Camilla McAleese: Under-treasurer of the Honourable Society of King's Inns and chairwoman of the board of the Irish Landmark Trust.

Vourneen Collins: Secretary/financial director of Bray Royal Cinema Ltd, Co Wicklow. A former president of the Bray and District branch of Soroptimist International.

John Hughes: in charge of business banking in the west for AIB.

Mary Moylan: assistant secretary, Department of the Environment's Heritage and Planning Division.

Anne O'Donoghue: senior executive in the private banking arm of Anglo Irish Bank.

Primrose Wilson, OBE: served as a member of the Heritage Council from 2000-2005.