If you are looking for a cottage in the upper Shannon region, the latest rural renewal scheme may ease some of the financial burden if it is a long-term investment. Under the scheme, tax relief is available for owner-occupied and rented residential accommodation in all of Leitrim and Longford and designated areas in Cavan, Roscommon and Sligo.

Two types of tax relief are available for costs related to construction, refurbishment and conversion of residential property located in these areas. Owner-occupier relief allows an individual to submit all or part of the expenditure on his/her main residence as an additional tax-free allowance. Rented residential accommodation relief allows the owner to deduct all or part of the expenditure in calculating his/her rental income. The house must be let for terms of at least three months during a period of 10 years from the first letting.

The Department of Finance is preparing a booklet on the scheme which outlines the particular requirements. When completed, it may be obtained from Revenue Forms and Leaflets Service, (01) 878 0100.