Taxes Consolidation Act 1997 section 644A

Relief from income tax in respect of income from dealing in residential development land

Section 644A provided a special 20 per cent income tax rate on profits from dealing in or developing residential development land, applying up to and including the tax year 2008 but ceasing to have effect from 2009 onwards.

• Profits from dealing in or developing residential development land were charged to income tax at 20 per cent rather than at the taxpayer's marginal rate, with such profits excluded from total income and ineligible for personal credits or standard rate reliefs.
• Residential development land means land disposed of to a housing authority or approved housing body and certified as required for social housing, land with planning permission for residential development, or land zoned for residential use in the relevant development plan.
• Profits attributable to construction operations on the land were excluded from the 20 per cent rate, except for demolition, site clearance, roadworks, drainage, and other preparatory work short of laying foundations.
• The taxpayer could elect in writing by the return filing date to opt out of the 20 per cent rate for any year, allowing the profits to be taxed under normal income tax rules with access to personal credits and reliefs.