New figures have revealed that a now-scrapped tax rate, applicable to property developers, cost the Irish Exchequer €800m.

The 'Special Incentive Tax Rate' was introduced in 2000 to encourage the release of land for residential development. It was abandoned in January 2009.

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While land that is sold for development purposes is liable for income tax, it does not incur capital gains tax charges.

The special incentive rate was 20%, compared to the higher rate of tax of 42% and a later reduction to 41%.

According to the figures from the Revenue Commissioners, the tax was applied to 10,000 cases between 2000 and 2007.

The incentive meant that money from the sale of land was not liable to the health levy or Pay Related Social Insurance (PRSI).

(NS/BMcC)