So. Want to make a fortune? Why not invest your money in beautiful downtown Ballaghaderreen (Co Roscommon)? On the main Dublin-Ballina route (N4), wide streets, beautiful people (1,200), capital of the Western Development Commission, and soon to be seat of the new Objective 1 Assembly. Sure where would you be going?

Well, Killshandra (Co Cavan) maybe. Or Tubbercurry (Co Sligo), or Granard (Co Longford). They are all in areas covered by the Rural Renewal Scheme introduced in the 1998 and 1999 Finance Acts as part of Government efforts to ensure a better geographic spread of economic activity in the State.

It is also hoped the scheme will end, or certainly slow the movement of people from rural to urban areas.

And at a time when city property is becoming increasingly expensive, the scheme is expected to attract a lot of favourable attention.

The new scheme is based on a similar one introduced in some urban and resort areas over recent years.

Built around tax reliefs, it will now apply to all of Co Leitrim, all of Co Longford, as well as parts of counties Cavan, Sligo, and Roscommon.

Essentially, the scheme can be divided into two main area, tax relief for business occupation and tax relief for residential accommodation.

Where industrial buildings are concerned, capital allowances are now available for capital spending on the building or refurbishment of specified industrial buildings. In the first year, these allowances are 50 per cent for owner-occupiers with the remaining 50 per cent written off at 4 per cent per annum over 13 years.

These allowances may be clawed back if the building is sold within 13 years of the date it was first used or when the spending on renovation took place.

No relief is available for businesses with more than 250 employees.

The same capital allowances are available for commercial buildings (offices, shops etc.) on the cost of construction or for the refurbishment of specified buildings. Again, no reliefs are available where the number of employees is above 250.

Investors providing rented accommodation will be able to claim Section 23 tax relief, whether they build that accommodation or convert/renovate existing property into residential accommodation.

Section 23 provides for a deduction of 100 per cent of construction, conversion or refurbishment expenditure on specified rented accommodation. This relief is available against all rental income, whether from the qualifying units or other lettings.

These reliefs may also be clawed back where the property is let for less than 10 years, excluding periods of temporary disuse.

Leases in such cases must be for a minimum period of three months and the accommodation must also be the main residence of the tenant in the relevant period.

Restrictions imposed by the Bacon Report on the deductability of mortgage interest relief against rental income on certain rented residential accommodation does not apply where such accommodation in these rural renewal areas are concerned.

Where owner-occupiers are concerned, tax relief is available at five per cent for construction and 10 per cent for renovation.

The property must be the applicant's main residence for 10 years to avoid clawback.

The allowances for industrial and commercial buildings came into effect on July 1st this year and continue to December, 2002. For investors in residential property, they came into effect on June 1st and continue to December, 2002, while relief for owner-occupiers have been available since April 6th, 1999, and will continue to December, 2002.

The Government hopes this scheme will encourage job creation in the designated areas while also enhancing the quality of life in the towns and townlands concerned.

Allied Irish Banks has launched a £50 million loan fund and guide to the scheme. The fund is intended to help part-finance personal/business investment in the designated areas.

Repayment schedules are flexible, including a moratorium on capital repayments of up to two years for new projects, with a minimum borrowing amount of £10,000.

Fixed or variable interest rates are available, and the borrower may switch from a variable to a fixed ate during the loan term.