Property Allowance Issues

Table of Contents

TAXES CONSOLIDATION ACT

Part 9

Principal Provisions Relating to Relief for Capital Expenditure (ss. 268-321)

Chapter 1

Industrial buildings or structures: industrial building allowances, writing-down allowances, balancing allowances and balancing charges (ss. 268-282)

268.

Meaning of “industrial building or structure”.

(1)In this Part, “industrial building or structure” means a building or structure in use –
(a)for the purposes of a trade carried on in –
(i)a mill, factory or other similar premises, or
(ii)a laboratory the sole or main function of which is the analysis of minerals (including oil and natural gas) in connection with the exploration for, or the extraction of, such minerals,
(b)for the purposes of a dock undertaking,
(c)for the purposes of growing fruit, vegetables or other produce in the course of a trade of market gardening within the meaning of section 654,
(d)for the purposes of the trade of hotel-keeping,
(e)for the purposes of the intensive production of cattle, sheep, pigs, poultry or eggs in the course of a trade other than the trade of farming within the meaning of section 654,
(f)for the purposes of a trade which consists of the operation or management of an airport and which is an airport runway or an airport apron used solely or mainly by aircraft carrying passengers or cargo for hire or reward,
(g)for the purposes of a trade which consists of the operation or management of a nursing home (in this section referred to as a ‘registered nursing home’) within the meaning of section 2 of the Health (Nursing Homes) Act, 1990, being a nursing home which is registered under section 4 of that Act,
(h)for the purposes of a trade which consists of the operation or management of an airport, other than a building or structure to which paragraph (f) relates,
(i)for the purposes of a trade which consists of the operation or management of a convalescent home for the provision of medical and nursing care for persons recovering from treatment in a hospital, being a hospital that provides treatment for acutely ill patients, and in respect of which convalescent home the Health Service Executive, is satisfied that the convalescent home satisfies the requirements of sections 4 and 6 of the Health (Nursing Homes) Act, 1990, and any regulations made under section 6 of that Act as if it were a nursing home within the meaning of section 2 of that Act,
(j)for the purposes of a trade which consists of the operation or management of a qualifying hospital,
(k)for the purposes of a trade which consists of the operation or management of a qualifying sports injuries clinic,
(l)for the purposes of a trade which consists of the operation or management of a qualifying mental health centre,
(n)for the purposes of a trade which consists of –
(i)the maintenance, repair or overhaul of aircraft used to carry passengers or cargo for hire or reward, or
(ii)the dismantling of aircraft of the kind referred to in subparagraph (i), for the purposes of the salvaging or recycling of parts or materials,
and in particular, in relation to capital expenditure incurred on or after the 6th day of April, 1969, includes any building or structure provided by the person carrying on such a trade or undertaking for the recreation or welfare of workers employed in that trade or undertaking and in use for that purpose.

(1A)Where the relevant interest in relation to capital expenditure incurred on the construction of a building or structure in use for the purposes specified in subsection (1)(j) is held by –

(a)a company,

(b)the trustees of a trust,

(c)an individual who is involved in the operation or management of the qualifying hospital concerned either as an employee or director or in any other capacity, or

(d)a property developer (within the meaning of section 843A) or a person who is connected with the property developer, in the case where either of such persons incurred the capital expenditure on the construction of that building or structure, or such expenditure was incurred by any other person connected with the property developer,

then, notwithstanding that subsection, that building or structure shall not, as regards a claim for any allowance under this Part by any such person, be regarded as an industrial building or structure for the purposes of this Part, irrespective of whether that relevant interest is held by the person referred to in paragraph (a), (b), (c) or (d), as the case may be, in a sole capacity or jointly or in partnership with another person or persons.

(1B)Where the relevant interest in relation to capital expenditure incurred on the construction of a building or structure in use for the purposes specified in subsection (1)(k) is held by –

(a)a company,

(b)the trustees of a trust,

(c)an individual who is involved in the operation or management of the qualifying sports injuries clinic concerned either as an employee or director or in any other capacity, or

(d)a property developer (within the meaning of section 372A), in the case where either such property developer or a person connected with such property developer incurred the capital expenditure on the construction of that building or structure,

(1C)In this section “qualifying mental health centre” means a centre (within the meaning of section 62 of the Mental Health Act 2001) which –

(a)is an approved centre for the purposes of the Mental Health Act 2001,

(b)has the capacity to provide day-patient and out-patient services and accommodation on an overnight basis of not less than 20 in-patient beds,

(c)provides to the Health Service Executive relevant data, for onward transmission to the Minister for Health and Children and the Minister for Finance, in relation to –

(i)the amount of the capital expenditure actually incurred on the construction or refurbishment of the centre,

(ii)the number and nature of the investors that are investing in the centre,

(iii)the amount to be invested by each investor, and

(iv)the nature of the structures which are being put in place to facilitate the investment in the centre,

together with such other information as may be specified by the Minister for Finance, in consultation with the Minister for Health and Children, as being of assistance in evaluating the costs, including but not limited to exchequer costs, and the benefits arising from the operation of tax relief under this Part for qualifying mental health centres,

(d)undertakes to the Health Service Executive –

(i)to make available annually, for the treatment of persons who have been awaiting day-patient, in-patient or out-patient services as public patients, not less than 20 per cent of its capacity, subject to service requirements to be specified by the Health Service Executive in advance and to the proviso that nothing in this subparagraph shall require the Health Service Executive to take up all or any part of the capacity made available to the Health Service Executive by the centre, and

(ii)in relation to the fees to be charged in respect of the treatment afforded to any such person, that such fees shall not be more than 90 per cent of the fees which would be charged in respect of similar treatment afforded to a person who has private medical insurance,

and

(e)in respect of which the Health Service Executive, in consultation with the Minister for Health and Children and with the consent of the Minister for Finance, gives an annual certificate in writing during the period of –

(i)15 years beginning with the time when the centre was first used, or

(ii)where capital expenditure on the refurbishment of the centre is incurred, 15 years beginning with the time when the centre was first used subsequent to the incurring of that expenditure,

stating that it is satisfied that the centre complies with the conditions mentioned in paragraphs (a), (b), (c) and (d),

and –

(I)subject to paragraph (II), includes any part of the centre which consists of rooms used exclusively for the assessment or treatment of patients, but

(II)does not include any part of the centre which consists of consultants’ rooms or offices.

(1D)Where the relevant interest in relation to capital expenditure incurred on the construction of a building or structure in use for the purposes specified in subsection (1)(l) is held by –

(a)a company,

(b)the trustees of a trust,

(c)an individual who is involved in the operation or management of the centre concerned either as an employee or director or in any other capacity, or

(1F)Where the relevant interest in relation to capital expenditure incurred on the construction of a building or structure in use for the purposes specified in subsection (1)(n) is held by a property developer (within the meaning of section 843A) or a person who is connected with the property developer, in the case where either of such persons incurred the capital expenditure on the construction of that building or structure, or such expenditure was incurred by any other person connected with the property developer, then, notwithstanding that subsection, that capital expenditure shall not, as regards a claim for any allowance under this Part by any such person, be regarded as specified capital expenditure for the purposes of this Part, irrespective of whether that relevant interest is held by the person in a sole capacity or jointly or in partnership with another person or persons.

(2)In this section, “dock” includes any harbour, wharf, pier or jetty or other works in or at which vessels can ship or unship merchandise or passengers, not being a pier or jetty primarily used for recreation, and “dock undertaking” shall be construed accordingly.

(2A)In this section –

“qualifying hospital” means a hospital which –

(a)is a private hospital (within the meaning of the Health Insurance Act, 1994 (Minimum Benefits) Regulations, 1996 (S.I. No. 83 of 1996)),

(b)[deleted]

(c)has the capacity to provide and normally provides medical and surgical services to persons every day of the year,

(d)has the capacity to provide –

(i)out-patient services and accommodation on an overnight basis of not less than 70 in-patient beds, or

(ii)day-case and out-patient medical and surgical services and accommodation for such services of not less than 40 beds,

(e)contains an operating theatre or theatres and related on-site diagnostic and therapeutic facilities,

(f)contains facilities to provide not less than 5 of the following services:

(i)accident and emergency,

(ii)cardiology and vascular,

(iii)eye, ear, nose and throat,

(iv)gastroenterology,

(v)geriatrics,

(vi)haematology,

(vii)maternity,

(viii)medical,

(ix)neurology,

(x)oncology,

(xi)orthopaedic,

(xii)respiratory,

(xiii)rheumatology,

(xiv)paediatric, and

(xv)mental health services (within the meaning of the Mental Health Act 2001),

(fa)in the case of a building or structure which –

(i)is first used on or after 1 February 2007, or

(ii)where capital expenditure on the refurbishment of the building or structure is incurred, is, subsequent to the incurring of that expenditure, first used on or after 1 February 2007,

provides to the Health Service Executive relevant data, for onward transmission to the Minister for Health and Children and the Minister for Finance, in relation to –

(I)the amount of the capital expenditure actually incurred on the construction or refurbishment of the building or structure,

(II)the number and nature of the investors that are investing in the building or structure,

(III)the amount to be invested by each investor, and

(IV)the nature of the structures which are being put in place to facilitate the investment in the building or structure,

(g)undertakes to the Health Service Executive-

(i)to make available annually, for the treatment of persons who have been awaiting in-patient or out-patient hospital services as public patients, not less than 20 per cent of its capacity, subject to service requirements to be specified by the Health Service Executive in advance and to the proviso that nothing in this subparagraph shall require the Health Service Executive to take up all or any part of the capacity made available to the Health Service Executive by the hospital, and

and

(h)in respect of which the Health Service Executive, in consultation with the Minister for Health and Children and with the consent of the Minister for Finance, gives an annual certificate in writing during the period of –

(i)10 years beginning with the time referred to in section 272(4)(ga)(i), or

(ii)as respects a building or structure which is first used on or after 1 February 2007, 15 years beginning with the time when the building or structure was first used, or

(iii)where capital expenditure on the refurbishment of a building or structure is incurred and, subsequent to the incurring of that expenditure, the building or structure is first used on or after 1 February 2007, 15 years beginning with the time when the building or structure was first used subsequent to the incurring of that expenditure,

stating that it is satisfied that the hospital complies with the conditions mentioned in paragraphs (a), (c), (d), (e), (f), (fa) and (g),

and

(I)subject to paragraph (II), includes any part of the hospital which consists of rooms used exclusively for the assessment or treatment of patients, but

(II)does not include any part of the hospital which consists of consultants’ rooms or offices.

(2B)In this section “qualifying sports injuries clinic” means a medical clinic –

(a)which does not (other than by virtue of paragraph (e)) provide health care services to a person pursuant to his or her entitlements under Chapter II of Part IV of the Health Act, 1970,

(b)in which the sole or main business carried on is the provision, by or under the control of medical or surgical specialists, of health care consisting of the diagnosis, alleviation and treatment of physical injuries sustained by persons in participating, or in training for participation, in athletic games or sports,

(c)which has the capacity to provide day-patient, in-patient and out-patient medical and surgical services and in-patient accommodation of not less than 20 beds,

(d)which contains an operating theatre or theatres and related on-site diagnostic and therapeutic facilities,

(e)which undertakes to the Health Service Executive-

(i)to make available annually, for the treatment of persons who have been awaiting day-patient, in-patient or out-patient hospital services as public patients, not less than 20 per cent of its capacity, subject to service requirements to be specified by the Health Service Executive in advance and to the condition that nothing in this subparagraph shall require the Health Service Executive to take up all or any part of the capacity made available to the health board by the medical clinic, and

and

(f)in respect of which the Health Service Executived, in consultation with the Minister for Health and Children and with the consent of the Minister for Finance, gives, during the period of 10 years beginning with the time referred to in section 272(4)(h), an annual certificate in writing stating that it is satisfied that the medical clinic complies with the conditions mentioned in paragraph (a) to (e),

and –

(I)subject to paragraph (II), includes any part of the clinic which consists of rooms used exclusively for the assessment or treatment of patients, but

(II)does not include any part of the clinic which consists of consultants’ rooms or offices.

(2C)For the purposes of this Part, a building or structure (other than a building or structure which is in use for the purposes of the trade of hotel-keeping) which is in use as –

(a)a guest house and is registered in the register of guest houses kept under the Tourist Traffic Acts 1939 to 2003, or

(b)a holiday hostel and is registered in the register of holiday hostels kept under the Tourist Traffic Acts 1939 to 2003,

shall, as respects capital expenditure incurred on or after 3 February 2005 on its construction (within the meaning of section 270), be deemed to be a building or structure in use for the purposes of the trade of hotel-keeping.

(2D)For the purposes of this Part, a building or structure which is comprised in, and is in use as part of, premises which are registered in the register of caravan sites and camping sites kept under the Tourist Traffic Acts 1939 to 2003 shall, as respects capital expenditure incurred on or after 1 January 2008 on its construction (within the meaning of section 270), be deemed to be a building or structure in use for the purposes of the trade of hotel-keeping.

(3)For the purpose of this Part, a building or structure in use as a holiday camp registered in the register of holiday camps kept under the Tourist Traffic Acts 1939 to 2003 or, in relation to capital expenditure incurred on or after the 1st day of July, 1968, a building or structure in use as a holiday cottage and comprised in premises registered in any register of holiday cottages established by the National Tourism Development Authority under any Act of the Oireachtas passed on or after the 29th day of July, 1969, shall, subject to subsection (13), be deemed to be a building or structure in use for the purposes of the trade of hotel-keeping.

(3A)Subject to subsections (3B) to (3E), in this section “qualifying residential unit” means a house which –

(a)is constructed on the site of, or on a site which is immediately adjacent to the site of, a registered nursing home,

(b)is –

(i)a single storey house, or

(ii)a house that is comprised in a building of one or more storeys in relation to which building a fire safety certificate under Part III of the Building Control Regulations 1997 (S.I. No. 496 of 1997) (as amended from time to time) is required, and prior to the commencement of the construction works on the building, is granted by the building control authority (within the meaning of section 2 of the Building Control Act 1990, as amended by the Local Government (Dublin) Act 1993 and the Local Government Act 2001) in whose functional area the building is situated,

where –

(I)the house is, or (as the case may be) the house and the building in which it is comprised are, designed and constructed to meet the needs of persons with disabilities, including in particular the needs of persons who are confined to wheelchairs, and

(II)the house consists of 1 or 2 bedrooms, a kitchen, a living room, bath or shower facilities, toilet facilities and a nurse call system linked to the registered nursing home,

(c)is comprised in a development of not less than 10 qualifying residential units where –

(i)that development also includes a day-care centre,

(ii)those units are operated or managed by the registered nursing home and an on-site caretaker is provided,

(iii)back-up medical care, including nursing care, is provided by the registered nursing home to the occupants of those units when required by those occupants,

(iv)not less than 20 per cent of those units are made available for renting to persons who are eligible for a rent subsidy from the Health Service Executive, subject to service requirements to be specified by the Health Service Executive in advance and to the condition that nothing in this subparagraph shall require the Health Service Executive to take up all or any of the units so made available, and

(v)the rent to be charged in respect of any such unit made available in accordance with subparagraph (iv) is not more than 90 per cent of the rent which would be charged if that unit were rented to a person who is not in receipt of a subsidy referred to in that subparagraph,

and

(d)

(i)is leased to a person and, as the case may be, the spouse or civil partner of that person-

(I)who is or, as the case may be, are not connected (within the meaning of section 10) with the lessor,

(II)who has or have been selected as the occupant or occupants of the house by the registered nursing home, and

(III)either the person or the spouse of that person has been certified by a person, who is registered in the General Register of Medical Practitioners, as requiring such accommodation by reason of old age or infirmity,

(ii)is leased to the registered nursing home on condition that it will be subsequently leased to a person or persons referred to in subparagraph (i) and which is subsequently used for no other purpose other than use by such person or persons.

(3B)

(a)For the purposes of this section “house”, in relation to a qualifying residential unit, has the same meaning as in section 372AK.

(b)For the purposes only of the making of allowances and charges under this Part but subject to subsection (3C) and sections 270 and 316 (as amended by the Finance Act 2007), as respects capital expenditure incurred in the period commencing on 25 March 2002 and ending on 30 April 2010, a house in use as a qualifying residential unit shall be deemed to be a building in use for the purposes of a trade referred to in subsection (1)(g).

(3C)Subsection (3B) shall not apply in respect of expenditure incurred on the construction of a qualifying residential unit where any part of that expenditure has been or is to be met, directly or indirectly, by grant assistance or any other assistance which is granted by or through the State, any board established by statute, any public or local authority or any other agency of the State.

(3D)Where the relevant interest in relation to capital expenditure incurred on the construction or refurbishment of all qualifying residential units in a development is held by a company (within the meaning of section 4(1)) then subsection (3A) shall apply as if subparagraphs (iv) and (v) of paragraph (c) of that subsection were deleted.

(3E)A house shall not be a qualifying residential unit for the purposes of this section unless-

(a)the following information has been provided to the Health Service Executive, by the person who is entitled to the relevant interest in relation to the capital expenditure incurred on the construction or refurbishment of the house, for onward transmission to the Minister for Health and Children and the Minister for Finance:

(i)the amount of the capital expenditure actually incurred on the construction or refurbishment of the house;

(ii)the number and nature of the investors that are investing in the house;

(iii)the amount to be invested by each investor; and

(iv)the nature of the structures which are being put in place to facilitate the investment in the house,

(b)the Health Service Executive, in consultation with the Minister for Health and Children, gives a certificate in writing after the house is first leased or, where capital expenditure is incurred on the refurbishment of a house, first leased subsequent to the incurring of that expenditure stating that it is satisfied that-

(i)the house and the development in which it is comprised complies with all the conditions mentioned in paragraphs (a), (b), (c) and (d) of subsection (3A), and

(ii)the information required in accordance with paragraph (a) of this subsection has been provided,

and

(c)an annual report in writing is provided, by the person who is entitled to the relevant interest in relation to the capital expenditure incurred on the construction or refurbishment of the house, to the Health Service Executive, for onward transmission to the Minister for Health and Children and the Minister for Finance, by the end of each year in the 20 year period referred to in section 272(4)(fa) (inserted by the Finance Act 2007), which-

(i)confirms whether the house and the development in which it is comprised continue to comply with all the conditions mentioned in paragraphs (a), (b), (c) and (d) of subsection (3A), and

(ii)provides details of the level of occupation of the house for the previous year including the age of and, as the case may be, the nature of the infirmity of the occupants.

(4)Where capital expenditure is incurred on preparing, cutting, tunnelling or levelling land for the purposes of preparing the land as a site for the installation of machinery or plant, the machinery or plant shall, as regards that expenditure, be treated for the purposes of this Chapter as a building or structure.

(5)For the purposes of this Part, expenditure incurred by a person on or after the 23rd day of April, 1996, either on the construction of, or on the acquisition of the relevant interest in, a building or structure not situated in the State shall not be treated as expenditure on a building or structure within the meaning of this section unless, being a building or structure not situated in the State –

(a)it is a building or structure which is to be constructed or which is in the course of construction and in respect of which it can be shown that –

(i)the person has either entered into a binding contract in writing for the acquisition of the site for the building or structure or has entered into an agreement in writing in relation to an option to acquire that site on or before the 23rd day of April, 1996,

(ii)the person has entered into a binding contract in writing for the construction of the building or structure on or before the 1st day of July, 1996, and

(iii)the construction of the building or structure had commenced on or before the 1st day of July, 1996, and had been completed before the 30th day of September, 1998,

and

(b)it is a building or structure to be constructed or which is being constructed which will be used for the purposes of a trade the profits or gains from which are taxable in the State.

(5A)Subject to subsection (5C), expenditure incurred by a person on the construction of an industrial building or structure (within the meaning of subsection (1)(n)) shall be treated as specified capital expenditure for the purposes of this Part –

(a)only to the extent that the aggregate of such expenditure does not exceed –

(i)€5,000,000, where the person concerned is a company, and

(ii)€1,250,000, where the person concerned is an individual,

and

(b)where the following information has been provided to the Revenue Commissioners before the first claim for a writing-down allowance is made, in accordance with section 272, by the person:

(i)the name, address and tax reference number (within the meaning of section 477B(1)) of the person making the claim;

(ii)the address of the building or structure in respect of which the expenditure was incurred or deemed to have been incurred;

(iii)details of the aggregate of the amount of such expenditure which has been incurred or deemed to have been incurred by the person making the claim.

(5B)Notwithstanding any obligation to the contrary imposed on them by section 851A, the Revenue Commissioners may furnish to one or more persons such information as is referred to in subsection (5A)(b) where the Revenue Commissioners are satisfied that doing so is necessary to ensure compliance with the provisions of this Part and any European Commission guidelines, regulations or other reporting requirements, as the case may be, that may be relevant.

(5C)Where capital expenditure has been incurred, or deemed to have been incurred, on the construction of an industrial building or structure (within the meaning of subsection (1)(n)) by 2 or more persons, being either individuals or companies, or both, the amount of such expenditure which is to be treated as specified capital expenditure for the purposes of this Part shall, if necessary and notwithstanding section 279, be reduced such that the amount determined by the formula –

(A x 50 per cent) + (B x 12½ per cent)

does not exceed €625,000, where –

Ais the aggregate of all such specified capital expenditure which has been incurred, or deemed to have been incurred, by the individual or individuals concerned, and

Bis the aggregate of all such specified capital expenditure which has been incurred, or deemed to have been incurred, by the company or companies concerned.

(5D)[deleted]

(5E)[deleted]

(6)Subsection (1) shall apply in relation to a part of a trade as it applies in relation to a trade but, where part only of a trade complies with the conditions set out in that subsection, a building or structure shall not by virtue of this subsection be an industrial building or structure unless it is in use for the purposes of that part of that trade.

(7)

(a)In this subsection, “retail shop” includes any premises of a similar character where retail trade or business (including repair work) is carried on.

(b)Notwithstanding anything in subsections (1) to (6) but subject to subsection (8), in this Part, “industrial building or structure” does not include any building or structure in use as, or as part of, a dwelling house (other than a holiday cottage referred to in subsection (3) or a qualifying residential unit), retail shop, showroom or office or for any purpose ancillary to the purposes of a dwelling house (other than a holiday cottage referred to in subsection (3) or a qualifying residential unit), retail shop, showroom or office.

(8)Where part of the whole of a building or structure is, and part of the whole of the building or structure is not, an industrial building or structure, and the capital expenditure incurred on the construction of the second-mentioned part is not more than 10 per cent of the total capital expenditure incurred on the construction of the whole building or structure, the whole building or structure and every part of the whole of the building or structure shall be treated as an industrial building or structure.

(9)Subsection (1) shall apply –

(a)by reference to paragraph (a)(ii), as respects capital expenditure incurred on or after the 25th day of January, 1984,

(b)by reference to paragraph (e), as respects capital expenditure incurred on or after the 6th day of April, 1971,

(c)by reference to paragraph (f), as respects capital expenditure incurred on or after the 24th day of April, 1992,

(d)by reference to paragraph (g), as respects capital expenditure incurred in the period commencing on 3 December 1997 and ending –

(i)on 31 December 2009, or

(ii)where subsection (17)(a) applies, on 30 June 2010, or

(iii)where subsection (17)(b) applies, on 30 June 2011,

(e)by reference to paragraph (h), as respects capital expenditure incurred –

(i)by Dublin Airport Authority on or after the vesting day, and

(ii)by any other person on or after the date of the passing of the Finance Act, 1998,

(f)by reference to paragraph (i), as respects capital expenditure incurred in the period commencing on 2 December 1998 and ending –

(i)on 31 December 2009, or

(ii)where subsection (17)(a) applies, on 30 June 2010, or

(iii)where subsection (17)(b) applies, on 30 June 2011,

(g)by reference to paragraph (j), as respects capital expenditure incurred in the period commencing –

(i)where subsection (2A)(d)(i) applies, on 15 May 2002, or

(ii)where subsection (2A)(d)(ii) applies, on 28 March 2003,

and ending –

(I)on 31 December 2009, or

(II)where subsection (17)(a) applies, on 30 June 2010, or

(III)where subsection (17)(b) applies, on 31 December 2013,

(h)by reference to paragraph (k), as respects capital expenditure incurred in the period commencing on 15 May 2002 and ending on 31 December 2006 or, where subsection (16) applies, ending on 31 July 2008, and

(i)by reference to paragraph (l), as respects capital expenditure incurred in the period commencing on 23 January 2007 and ending –

(i)on 31 December 2009, or

(ii)where subsection (17)(a) applies, on 30 June 2010, or

(iii)where subsection (17)(b) applies, on 30 June 2011,

(k)by reference to paragraph (n), as respects –

(i)specified capital expenditure incurred in the period commencing on the date of the coming into operation of section 31 of the Finance Act 2013 and ending on the fifth anniversary of that date, and

(ii)capital expenditure other than specified capital expenditure incurred on or after the date of the coming into operation of section 31 of the Finance Act 2013.

(10)For the purposes of this Part-

“Dublin Airport Authority” means the Dublin Airport Authority, public limited company, and includes-

(a)where a day has been appointed under section 5 of the State Airports Act 2004 in respect of the Cork Airport Authority, public limited company, that company, and

(b)where a day has been appointed under the said section 5 in respect of the Shannon Airport Authority, public limited company, that company;

“vesting day” means the day appointed by order under section 9(6) of the State Airports Act 2004 in respect of the Dublin Airport Authority and such other day or days as may be appointed by order or orders under section 5 of the State Airports Act 2004 in respect of the Cork Airport Authority, public limited company, and the Shannon Airport Authority, public limited company.

(11)Notwithstanding any other provision of this section, as respects capital expenditure incurred on or after 20 March 2001, a building or structure in use for the purposes of the trade of hotel-keeping shall not be treated as an industrial building or structure where any part of that expenditure has been or is to be met, directly or indirectly, by grant assistance or any other assistance which is granted by or through the State, any board established by statute, any public or local authority or any other agency of the State.

(11A)Notwithstanding any other provision of this Part, capital expenditure which has been incurred on the construction of an industrial building (within the meaning of subsection (1)(n)) shall not be treated as specified capital expenditure where any part of that expenditure has been or is to be met, directly or indirectly, by grant assistance or any other assistance which is granted by or through the State, any board established by statute, any public or local authority or any other agency of the State.

(12)Notwithstanding any other provision of this section, as respects capital expenditure incurred on the construction or refurbishment of a building or structure in respect of which construction or refurbishment first commences on or after 6 April 2001 (being capital expenditure in respect of which but for this subsection a writing-down allowance in excess of 4 per cent would be available under section 272 for a chargeable period), a building or structure in use for the purposes of the trade of hotel-keeping shall not be treated as an industrial building or structure unless, on the making of an application by the person who incurs the capital expenditure on the construction or refurbishment of the building or structure, the National Tourism Development Authority gives a certificate in writing to that person, in relation to that expenditure, stating –

(a)that it has received a declaration from that person as to whether or not that person is –

(i)a small or medium-sized enterprise within the meaning of Annex I to Commission Regulation (EC) No. 70/2001 of 12 January 2001 on the application of Articles 87 and 88 of the European Communities Treaty to State aid to small and medium-sized enterprises , or

(ii)a micro, small or medium-sized enterprise within the meaning of the Annex to Commission Recommendation of 6 May 2003 concerning the definition of micro, small and medium-sized enterprises ,

(b)that the expenditure concerned falls within the meaning of “initial investment” contained in point 4.4 of the “Guidelines on National Regional Aid” prepared by the Commission of the European Communities,

(c)that, in the case of expenditure incurred on or after 1 January 2003 on the construction or refurbishment of a building or structure provided for the purposes of a project which is subject to the notification requirements of –

(i)the “Multisectoral framework on regional aid for large investment projects” prepared by the Commission of the European Communities and dated 7 April 1998, or

(ii)the “Multisectoral framework on regional aid for large investment projects” prepared by the Commission of the European Communities and dated 19 March 2002,

as the case may be, approval of the potential capital allowances involved, or part thereof, has been received from that Commission by the Minister for Finance, or by such other Minister of the Government, agency or body as may be nominated for that purpose by the Minister for Finance, and

(d)that such person has undertaken to furnish to the Minister for Finance, or to such other Minister of the Government, agency or body as may be nominated for that purpose by the Minister for Finance, upon request in writing by the Minister concerned or that agency or body, such further information as may be necessary to enable compliance with the reporting requirements of –

(i)the Regulation or Recommendation referred to in paragraph (a) or the Multisectoral framework referred to in paragraph (c),

(ii)”Community guidelines on State aid for rescuing and restructuring firms in difficulty” prepared by the Commission of the European Communities or, as the case may be, “Community guidelines on State aid for rescuing and restructuring firms in difficulty” prepared by that Commission, or

(iii)any other European Communities Regulation or Directive under the European Communities Treaty governing the granting of State aid in specific sectors.

(12A)

(a)Where the National Tourism Development Authority gives a certificate in writing to the person who has incurred the capital expenditure on the construction or refurbishment of the building or structure stating that the approval referred to in subsection (12)(c) has been received, the building or structure shall, for the purposes of this Part, be treated as an industrial building or structure from the date on which it was first used for the purposes of the trade of hotel-keeping, and tax shall be discharged or repaid accordingly in giving effect to the allowances to be made under this Part.

(b)Where the Commission of the European Communities has approved an amount –

(i)which is lower than the amount of capital expenditure actually incurred on the construction or refurbishment of the building or structure, then, for the purposes of this Part, that lower amount shall be substituted for the amount actually incurred, or

(ii)which is lower than the amount of the net price paid within the meaning of section 279, that section shall apply as if the reference to the net price paid in subsection (2)(b) were a reference to the lower amount so approved.

(13)

(a)Notwithstanding subsection (3) but subject to paragraphs (b) and (c), a holiday cottage referred to in that subsection shall not, as respects capital expenditure incurred on or after 4 December 2002 on its construction (within the meaning of section 270), be deemed to be a building or structure in use for the purposes of the trade of hotelkeeping.

(b)This subsection shall not apply as respects expenditure incurred on or before 31 December 2006 on the construction or refurbishment of a holiday cottage if –

(i)

(I)a planning application (not being an application for outline permission within the meaning of section 36 of the Planning and Development Act 2000), in so far as planning permission is required, in respect of the holiday cottage is made in accordance with the Planning and Development Regulations 2001 to 2002,

(II)an acknowledgement of the application, which confirms that the application was received on or before 31 December 2004, is issued by the planning authority in accordance with article 26(2) of the Planning and Development Regulations 2001 (S.I. No. 600 of 2001), and

(III)the application is not an invalid application in respect of which a notice is issued by the planning authority in accordance with article 26(5) of those regulations,

(ii)

(I)a planning application, in so far as planning permission was required, in respect of the holiday cottage was made in accordance with the Local Government (Planning and Development) Regulations 1994 (S.I. No. 86 of 1994), not being an application for outline permission within the meaning of article 3 of those regulations,

(II)an acknowledgement of the application, which confirms that the application was received on or before 10 March 2002, was issued by the planning authority in accordance with article 29(2)(a) of the regulations referred to in clause (I), and

(III)the application was not an invalid application in respect of which a notice was issued by the planning authority in accordance with article 29(2)(b)(i) of those regulations,

(iii)where the construction or refurbishment work on the holiday cottage represented by that expenditure is exempted development for the purposes of the Planning and Development Act 2000 by virtue of section 4 of that Act or by virtue of Part 2 of the Planning and Development Regulations 2001 (S.I. No. 600 of 2001) and-

(I)a detailed plan in relation to the development work is prepared,

(II)a binding contract in writing, under which the expenditure on the development is incurred, is in existence, and

(III)work to the value of 5 per cent of the development costs is carried out,

not later than 31 December 2004.

(c)This subsection shall not apply as respects expenditure incurred on or before 31 July 2008 on the construction or refurbishment of a holiday cottage if –

(i)the conditions of subparagraph (i), (ii) or (iii), as the case may be, of paragraph (b) have been satisfied,

(ii)subject to paragraphs (a) and (b) of section 270(7) –

(I)the person who is constructing or refurbishing the holiday cottage has, on or before 31 December 2006, carried out work to the value of not less than 15 per cent of the actual construction or, as the case may be, refurbishment costs of the holiday cottage, and

(II)the person referred to in clause (I) or, where the holiday cottage is sold by that person, the person who is claiming a deduction under this Chapter in relation to the expenditure incurred, can show that the condition in clause (I) was satisfied,

(iii)a binding contract in writing under which expenditure on the construction or refurbishment of the holiday cottage is incurred was in existence on or before 31 July 2006, and

(iv)such other conditions, as may be specified in regulations made for the purposes of this subparagraph by the Minister for Finance, have been satisfied; but such conditions shall be limited to those necessary to ensure compliance with the laws of the European Communities governing State aid or with a decision of the Commission of the European Communities as to whether aid to which this subsection relates is compatible with the common market having regard to Article 87 of the European Communities Treaty.

(14)Subject to subsection (15), a building or structure in use for the purposes of the trade of hotel-keeping (but not including a building or structure deemed to be such a building or structure) shall not, as respects capital expenditure incurred on or after 3 February 2005 on its construction (within the meaning of section 270), be treated as an industrial building or structure unless the building or structure is registered in the register of hotels kept under the Tourist Traffic Acts 1939 to 2003.

(15)Subsection (14) shall not apply as respects capital expenditure incurred on or before 31 July 2006 on the construction or refurbishment of a building or structure in use for the purposes of the trade of hotel-keeping if –

(a)

(i)a planning application (not being an application for outline permission within the meaning of section 36 of the Planning and Development Act 2000), in so far as planning permission was required, in respect of the construction or refurbishment work on the building or structure represented by that expenditure, was made in accordance with the Planning and Development Regulations 2001 to 2004,

(ii)an acknowledgement of the application, which confirms that the application was received on or before 31 December 2004, was issued by the planning authority in accordance with article 26(2) of the Planning and Development Regulations 2001 (S.I. No. 600 of 2001), and

(iii)the application was not an invalid application in respect of which a notice was issued by the planning authority in accordance with article 26(5) of those regulations,

(b)

(i)a planning application, in so far as planning permission was required, in respect of the construction or refurbishment work on the building or structure represented by that expenditure, was made in accordance with the Local Government (Planning and Development) Regulations 1994 (S.I. No. 86 of 1994), not being an application for outline permission within the meaning of article 3 of those regulations,

(ii)an acknowledgement of the application, which confirms that the application was received on or before 10 March 2002, was issued by the planning authority in accordance with article 29(2)(a) of the regulations referred to in subparagraph (i), and

(iii)the application was not an invalid application in respect of which a notice was issued by the planning authority in accordance with article 29(2)(b)(i) of those regulations,

(c)where the construction or refurbishment work on the building or structure represented by that expenditure is exempted development for the purposes of the Planning and Development Act 2000 by virtue of section 4 of that Act or by virtue of Part 2 of the Planning and Development Regulations 2001 (S.I. No. 600 of 2001) and –

(i)a detailed plan in relation to the development work was prepared,

(ii)a binding contract in writing, under which the expenditure on the development is incurred, was in existence, and

(iii)work to the value of 5 per cent of the development costs was carried out,

not later than 31 December 2004, or

(d)

(i)the construction or refurbishment of the building or structure is a development in respect of which an application for a certificate under section 25(7)(a)(ii) of the Dublin Docklands Development Authority Act 1997 was made to the Authority (within the meaning of that Act),

(ii)an acknowledgement of the application, which confirms that the application was received on or before 31 December 2004, was issued by that Authority, and

(iii)the application was not an invalid application.

(16)This subsection shall apply in relation to the construction or refurbishment of a qualifying sports injuries clinic where –

(a)the person who is constructing or refurbishing the clinic has, on or before 31 December 2006, carried out work to the value of not less than 15 per cent of the actual construction or, as the case may be, refurbishment costs of the clinic, and

(b)the person referred to in paragraph (a) or, where the clinic is sold by that person, the person who is claiming a deduction under this Chapter in relation to the expenditure incurred, can show that the condition in paragraph (a) was satisfied.

(17)

(a)This paragraph shall apply where –

(i)capital expenditure is incurred on the construction or refurbishment of a building or structure referred to in paragraphs (g), (i), (j) or (l) of subsection (1),

(ii)the construction or refurbishment work on the building or structure represented by that expenditure is exempted development for the purposes of the Planning and Development Act 2000 by virtue of section 4 of that Act or by virtue of Part 2 of the Planning and Development Regulations 2001 (S.I. No. 600 of 2001) (in this subsection referred to as the ‘Regulations of 2001’), and

(iii)not less than 30 per cent of the total construction or refurbishment costs has been incurred on or before 31 December 2009.

(b)This paragraph shall apply where –

(i)capital expenditure is incurred on the construction or refurbishment of a building or structure referred to in paragraphs (g), (i), (j) or (l) of subsection (1),

(ii)a planning application (not being an application for outline permission within the meaning of section 36 of the Planning and Development Act 2000), in so far as planning permission is required, in respect of the construction or refurbishment work on the building or structure represented by that expenditure, is made in accordance with the Regulations of 2001,

(iii)an acknowledgement of the application, which confirms that the application was received on or before 31 December 2009, is issued by the planning authority in accordance with article 26(2) of the Regulations of 2001, and

(iv)the application is not an invalid application in respect of which a notice was issued by the planning authority in accordance with article 26(5) of the Regulations of 2001.

269.

Meaning of “the relevant interest”.

(1)Subject to this section, in this Chapter, “the relevant interest”, in relation to any expenditure incurred on the construction of a building or structure, means the interest in that building or structure to which the person who incurred the expenditure was entitled when the person incurred the expenditure.

(2)Where, when a person incurs expenditure on the construction of a building or structure, the person is entitled to 2 or more interests in the building or structure and one of those interests is an interest which is reversionary on all the others, that interest shall be the relevant interest for the purposes of this Chapter.

(3)An interest shall not cease to be the relevant interest for the purposes of this Chapter by reason of the creation of any lease or other interest to which that interest is subject, and where the relevant interest is a leasehold interest and is extinguished by reason of the surrender of the leasehold interest, or on the person entitled to the leasehold interest acquiring the interest which is reversionary on the leasehold interest, the interest into which that leasehold interest merges shall thereupon become the relevant interest.

270.

Meaning of “expenditure on construction of building or structure”.

(1)In this section, “refurbishment”, in relation to a building or structure, means any work of construction, reconstruction, repair or renewal, including the provision of water, sewerage or heating facilities carried out in the course of the repair or restoration, or maintenance in the nature of repair or restoration, of the building or structure.

(2)A reference in this Chapter to expenditure incurred on the construction of a building or structure includes expenditure on the refurbishment of the building or structure, but does not include –

(a)any expenditure incurred on the acquisition of, or of rights in or over, any land,

(b)any expenditure on the provision of machinery or plant or on any asset treated for any chargeable period as machinery or plant, or

(c)any expenditure in respect of which an allowance is or may be made for the same or for any other chargeable period under section 670 or 765(1).

(3)Where a building or structure which is to be an industrial building or structure forms part of a building or is one of a number of buildings in a single development, or forms a part of a building which is itself one of a number of buildings in a single development, there shall be made such apportionment as is necessary of the expenditure incurred on the construction of the whole building or number of buildings, as the case may be, for the purpose of determining the expenditure incurred on the construction of the building or structure which is to be an industrial building or structure.

(4)This subsection applies where capital expenditure on the construction or refurbishment of a building or structure (or, in the case of section 843, qualifying expenditure within the meaning of that section) is incurred at any time in the period from 1 January 2006 to 31 July 2008 and the building or structure –

(a)is, or by virtue of section 268(3) is deemed to be, an industrial building or structure within the meaning of section 268(1)(d),

(b)is an industrial building or structure within the meaning of section 268(1)(k),

(c)is a qualifying multi-storey car park within the meaning of section 344,

(d)is a building or structure to which section 372C applies or a qualifying premises within the meaning of section 372D,

(e)is a building or structure to which section 372M applies or a qualifying premises within the meaning of section 372N,

(f)is a qualifying park and ride facility within the meaning of section 372U or a qualifying premises within the meaning of section 372W,

(g)is a building or structure to which section 372AC applies or a qualifying premises within the meaning of section 372AD,

(h)is a qualifying premises within the meaning of section 843, or

(i)is a qualifying residential unit within the meaning of section 268(3A).

(5)Where subsection (4) applies, then, notwithstanding any other provision of the Tax Acts but subject to subsections (6) and (7), the amount of the capital expenditure or, as the case may be, qualifying expenditure referred to in subsection (4) which is to be treated as incurred for the purposes of the making of allowances and charges under this Part (including the making of balancing allowances and charges under section 274 and the calculation of the residue of expenditure under section 277), whether or not those allowances or charges are to be made directly under this Part or under this Part by virtue of the application of any provision of Part 10 or section 843, shall be reduced –

(a)in the case of expenditure incurred in –

(i)where subsection (4)(i) applies, the period from 25 March 2007 to 31 December 2007, and

(ii)in any other case, the period from 1 January 2007 to 31 December 2007,

to 75 per cent, and

(b)in the case of expenditure incurred in the period from 1 January 2008 to 31 July 2008, to 50 per cent,

of the amount which, apart from this subsection, would otherwise be so treated and, for those purposes, references in the Tax Acts, other than those in section 279 as applied by subsection (6), to expenditure incurred on the construction of a building or structure shall be construed as a reference to such expenditure as reduced in accordance with this subsection.

(6)Where subsections (4) and (5) and, as the case may be, subsection (7) apply in relation to capital expenditure or qualifying expenditure incurred on a building or structure, section 279 shall apply in relation to the building or structure as if –

(a)in subsection (1) of that section, the following were substituted for the definition of ‘the net price paid’:

‘ “the net price paid” means the amount represented by A in the equation –

where –

Bis the amount paid by a person on the purchase of the relevant interest in the building or structure,

Cis the amount of the expenditure actually incurred on the construction of the building or structure as reduced in accordance with section 270(5) and, as the case may be, section 270(7),

Dis the amount of the expenditure actually incurred on the construction of the building or structure, and

Eis the amount of any expenditure actually incurred which is expenditure for the purposes of paragraph (a), (b) or (c) of section 270(2).’,

(b)in subsection (2) of that section, the following were substituted for paragraph (b):

‘(b)the person who buys that interest shall be deemed for those purposes to have incurred, on the date when the purchase price becomes payable, expenditure on the construction of the building or structure equal to that expenditure as reduced in accordance with section 270(5) and, as the case may be, section 270(7) or to the net price paid (within the meaning of that term as applied by section 270(6)(a)) by such person for that interest, whichever is the less;’,

and

(c)in subsection (3) of that section, the reference to ‘that expenditure or to’ were a reference to ‘that expenditure as reduced in accordance with section 270(5) and, as the case may be, section 270(7) or to’.

(7)

(a)This subsection applies to a building or structure to which paragraph (a), paragraph (d) (other than a qualifying premises which fronts on to a qualifying street (within the meaning of section 372A)), paragraph (e) or paragraph (g) of subsection (4) applies and in relation to which building or structure a person must show that the condition in –

(i)where subsection (4)(a) applies, section 268(13)(c)(ii)(I) or, as the case may be, sections 272(9)(b)(i) and 274(1B)(b)(i),

(ii)where subsection (4)(d) applies, section 372A(3)(a),

(iii)where subsection (4)(e) applies, section 372L(3)(a), or

(iv)where subsection (4)(g) applies, section 372AA(3)(a),

was satisfied on or before 31 December 2006.

(b)

(i)A person shall not be treated as having satisfied the condition referred to in paragraph (a) in relation to a building or structure unless –

(I)where paragraph (a) (ii) applies, the relevant local authority (within the meaning of section 372A), and

(II)in any other case, the local authority (within the meaning of the Local Government Act 2001),

in whose administrative area the building or structure is situated, gives a certificate in writing on or before 30 March 2007, to the person constructing or refurbishing the building or structure stating –

(A)that it is satisfied that work to the value of not less than 15 per cent of the actual construction or refurbishment costs of the building or structure involved was carried out on or before 31 December 2006,

(B)the actual amount of the capital expenditure incurred on the construction or refurbishment of the building or structure by 31 December 2006, and

(C)the projected amount of the balance of the capital expenditure (other than that referred to in clause (B)) which is to be incurred on the construction or refurbishment of the building or structure.

(ii)An application for a certificate referred to in subparagraph (i) shall be made on or before 31 January 2007 by the person who is constructing or refurbishing the building or structure.

(iii)In considering whether to give a certificate referred to in subparagraph (i), the relevant local authority or, as the case may be, the local authority shall have regard to guidelines in relation to the giving of such certificates issued by the Department of the Environment, Heritage and Local Government.

(c)Where this subsection applies, the amount of capital expenditure referred to in subsection (4) which is to be treated as incurred in the period from 1 January 2007 to 31 July 2008 for the purposes of the making of allowances and charges (as referred to in subsection (5)) under this Part, shall not exceed the amount which has been certified by the relevant local authority or, as the case may be, the local authority under clause (C) of paragraph (b)(i) in relation to that building or structure.

(d)The provisions of this subsection shall apply prior to the application of the provisions of subsections (5) and (6) and where the provisions of this subsection apply to reduce the amount of capital expenditure which is to be treated as incurred in the period from 1 January 2007 to 31 July 2008, such reduction shall be made in relation to expenditure incurred in the period from 1 January 2008 to 31 July 2008 in priority to the period from 1 January 2007 to 31 December 2007.

(e)Where a building or structure to which this subsection applies is sold by the person who constructed or refurbished the building or structure, such person shall, at the time of such sale, supply the purchaser with a copy of the certificate referred to in paragraph (b) (i) for the purposes of the making of a claim by the purchaser under any of the provisions of this Part.

(8)Where capital expenditure is incurred on or after 1 May 2007 under a contract or agreement which is entered into on or after that date for the construction, refurbishment or development of a qualifying residential unit as is referred to in subsection (4)(i), then –

(a)subsection (4) shall apply as if the reference to ’31 July 2008′ were a reference to ’30 April 2010′,

(b)subsection (5) shall apply as if –

(i)the reference to ‘subject to subsections (6) and (7) ‘ were a reference to ‘subject to subsections (6) to (8) ‘, and

(ii)the following paragraphs were substituted for paragraphs (a) and (b):

‘(a)in the case of expenditure incurred by a company (within the meaning of section 4(1)) in the period from 1 May 2007 to 30 April 2010, to 75 per cent, and

(b)in the case of expenditure incurred by a person other than a company (within the meaning of section 4(1)) in the period from 1 May 2007 to 30 April 2010, to 50 per cent,’,

271.

Industrial building allowances.

(1)In this section –

“industrial development agency” means the Industrial Development Authority, the Shannon Free Airport Development Company Limited or Údarás na Gaeltachta;

“appropriate chargeable period”, in relation to any person who has incurred expenditure on the construction of a building or structure, means the chargeable period related to the expenditure or, if it is later, the chargeable period related to the event (which shall be regarded as an event within the meaning of section 321(2)(b)), where such event is –

(a)the commencement of the tenancy in a case in which the first use to which the building or structure is put is a use by a person occupying it by virtue of a tenancy to which the relevant interest is reversionary, or

(b)in a case to which subsection (2)(b)(ii) refers, the commencement of the tenancy to which the relevant interest is reversionary;

“relevant lease” means a lease to which the relevant interest is reversionary.

(2)

(a)Subject to the Tax Acts, where a person incurs capital expenditure on the construction of a building or structure –

(i)which is to be an industrial building or structure to which subsection (3) applies, and

(ii)which is to be occupied for the purposes of a trade carried on either by the person or by a lessee mentioned in paragraph (b),

there shall be made to the person who incurred the expenditure, for the appropriate chargeable period, an allowance (in this Chapter referred to as an “industrial building allowance”).

(b)The lessee referred to in paragraph (a) is a lessee occupying the building or structure on the construction of which the expenditure was incurred and who so occupies it –

(i)under a relevant lease, or

(ii)under a lease to which a relevant lease granted to an industrial development agency is reversionary.

(3)This subsection shall apply to –

(a)an industrial building or structure provided –

(i)before the 23rd day of April, 1996, for use for the purposes of trading operations, or

(ii)on or after the 23rd day of April, 1996, by a company for use for the purposes of trading operations carried on by the company,

which are relevant trading operations within the meaning of section 445 or 446 but, in relation to capital expenditure incurred on the provision of an industrial building or structure on or after the 6th day of May, 1993, excluding an industrial building or structure provided by a lessor to a lessee other than in the course of the carrying on by the lessor of those relevant trading operations,

(b)an industrial building or structure provided for the purposes of a project approved by an industrial development agency on or before the 31st day of December, 1988, and in respect of the provision of which expenditure was incurred before the 31st day of December, 1995; but, as respects an industrial building or structure provided for the purposes of a project approved by an industrial development agency in the period from the 1st day of January, 1986, to the 31st day of December, 1988, this paragraph shall apply as if the reference to the 31st day of December, 1995, were a reference to the 31st day of December, 1996,

and

(c)an industrial building or structure provided for the purposes of a project approved for grant assistance by an industrial development agency in the period from the 1st day of January, 1989, to the 31st day of December, 1990, and in respect of the provision of which expenditure is incurred before the 31st day of December, 1997, or before the 30th day of June, 1998, if such expenditure would have been incurred before the 31st day of December, 1997, but for the existence of circumstances which resulted in legal proceedings being initiated, being proceedings which were the subject of an order of the High Court made before the 1st day of January, 1998; but, as respects an industrial building or structure provided for the purposes of any such project specified in the list referred to in section 133(8)(c)(iv), this paragraph shall apply as if the reference to the 31st day of December, 1997, where it first occurs, were a reference to the 31st day of December, 2002.

(4)An industrial building allowance shall be of an amount equal to –

(a)where the building or structure is to be used for a purpose specified in paragraph (a) or (b) of section 268(1), 50 per cent of the capital expenditure mentioned in subsection (2); but, in the case of a building or structure to which subsection (3)(a) applies, this paragraph shall apply only if that expenditure is incurred before the 25th day of January, 1999,

(b)where the building or structure is to be used for a purpose specified in paragraph (c) or (e) of section 268(1), 20 per cent of the capital expenditure mentioned in subsection (2), and

(c)in any other case, 10 per cent of the capital expenditure mentioned in subsection (2).

(5)Where an industrial building allowance in respect of capital expenditure incurred on the construction of a building or structure to which subsection (3)(c) applies is made under this section for any chargeable period –

(a)no allowance in relation to that capital expenditure shall be made under section 272 for that chargeable period, and

(b)an allowance in relation to that capital expenditure which is to be made under section 272 for any chargeable period subsequent to that chargeable period shall not be increased under section 273.

(6)Notwithstanding any other provision of this section, no industrial building allowance shall be made in respect of any expenditure on a building or structure if the building or structure, when it comes to be used, is not an industrial building or structure, and where an industrial building allowance has been granted in respect of any expenditure on any such building or structure, any assessments may, as necessary, be amended to give effect to this subsection.

272.

Writing-down allowances.

(1)A building or structure shall be one to which this section applies only if the capital expenditure incurred on the construction of it has been incurred on or after the 30th day of September, 1956.

(2)Subject to this Part, where –

(a)any person is, at the end of a chargeable period or its basis period, entitled to an interest in a building or structure to which this section applies,

(b)at the end of the chargeable period or its basis period, the building or structure is an industrial building or structure, and

(c)that interest is the relevant interest in relation to the capital expenditure incurred on the construction of that building or structure,

an allowance (in this Chapter referred to as a “writing-down allowance”) shall be made to such person for that chargeable period.

(3)A writing-down allowance shall be of an amount equal to –

(a)in relation to a building or structure which is to be regarded as an industrial building or structure within the meaning of paragraph (a) or (b) of section 268(1) –

(i)2 per cent of the expenditure referred to in subsection (2)(c), if that expenditure was incurred before the 16th day of January, 1975, or

(ii)4 per cent of the expenditure referred to in subsection (2)(c), if that expenditure is incurred on or after the 16th day of January, 1975,

(b)in relation to a building or structure which is to be regarded as an industrial building or structure within the meaning of paragraph (c) or (e) of section 268(1), 10 per cent of the expenditure referred to in subsection (2)(c),

(c)in relation to a building or structure which is to be regarded as an industrial building or structure within the meaning of section 268(1)(d), other than a building or structure to which paragraph (d), (da) or (db) relates –

(i)10 per cent of the expenditure referred to in subsection (2)(c), if that expenditure was incurred before the 27th day of January, 1994,

(ii)15 per cent of the expenditure referred to in subsection (2)(c), if that expenditure is incurred on or after the 27th day of January, 1994, or

(iii)subject to subsections (8) and (9), 4 per cent of the expenditure referred to in subsection (2) (c), if the capital expenditure on the construction (within the meaning of section 270) of the building or structure is incurred on or after 4 December 2002,

(d)in relation to a building or structure which is to be regarded as an industrial building or structure within the meaning of section 268(1)(d) by reason of its use as a holiday cottage, 10 per cent of the expenditure referred to in subsection (2)(c),

(da)in relation to a building or structure which is to be regarded as an industrial building or structure within the meaning of section 268(1)(d) by reason of its use as a guest house or a holiday hostel to which section 268(2C) applies, 4 per cent of the capital expenditure on the construction (within the meaning of section 270) of the building or structure which is incurred on or after 3 February 2005,

(db)in relation to a building or structure which is to be regarded as an industrial building or structure within the meaning of section 268(1)(d) by reason of being comprised in, and in use as part of, premises which are registered in the register of caravan sites and camping sites kept under the Tourist Traffic Acts 1939 to 2003, 4 per cent of the capital expenditure on the construction (within the meaning of section 270) of the building or structure which is incurred on or after 1 January 2008,

(e)in relation to a building or structure which is to be regarded as an industrial building or structure within the meaning of section 268(1)(f), 4 per cent of the expenditure referred to in subsection (2)(c),

(f)in relation to a building or structure which is to be regarded as an industrial building or structure within the meaning of paragraph (g) or (i) of section 268(1), 15 per cent of the expenditure referred to in subsection (2)(c),

(g)in relation to a building or structure which is to be regarded as an industrial building or structure within the meaning of section 268(1)(h), 4 per cent of the expenditure referred to in subsection (2)(c),

(h)in relation to a building or structure which is to be regarded as an industrial building or structure within the meaning of paragraph (j) or (k) of section 268(1), 15 per cent of the expenditure referred to in subsection (2)(c), and

(i)in relation to a building or structure which is to be regarded as an industrial building or structure within the meaning of paragraph (l) of section 268(1), 15 per cent of the expenditure referred to in subsection (2)(c).

(k)in relation to a building or structure which is to be regarded as an industrial building or structure within the meaning of paragraph (n) of section 268(1) –

(i)15 per cent of the expenditure referred to in subsection (2)(c), if that expenditure is specified capital expenditure, and

(ii)4 per cent of the expenditure referred to in subsection (2)(c), if that expenditure is not specified capital expenditure.

(3A)

(a)This subsection shall apply to a building or structure in existence on –

(i)in the case of Dublin Airport Authority, the vesting day, and

(ii)in the case of any other person, the date of the passing of the Finance Act, 1998,

and in use for the purposes of a trade which consists of the operation or management of an airport, not being either machinery or plant or a building or structure to which section 268(1)(f) applies.

(b)For the purposes of this Part, in relation to a building or structure to which this subsection applies, expenditure shall be deemed to have been incurred on –

(i)in the case of Dublin Airport Authority, the vesting day, and

(ii)in the case of any other person, the date of the passing of the Finance Act, 1998,

on the construction of the building or structure of an amount determined by the formula –

A − B

where –

Ais the amount of the capital expenditure originally incurred on the construction of the building or structure, and

Bis the amount of the writing-down allowances which would have been made under this section in respect of the capital expenditure referred to in A if the building or structure had at all times been an industrial building or structure within the meaning of section 268(1)(h) and on the assumption that that section had applied as respects capital expenditure incurred before –

(I)in the case of Dublin Airport Authority, the vesting day, and

(II)in the case of any other person, the date of the passing of the Finance Act, 1998.

(3B)

(a)This subsection shall apply to a building or structure to which section 268(1)(f) applies, being a building or structure in existence on the vesting day and vested in Dublin Airport Authority on that day.

(b)For the purposes of this Part, in the case of a building or structure to which this subsection applies, expenditure shall be deemed to have been incurred by Dublin Airport Authority on the vesting day on the construction of the building or structure of an amount determined by the formula –

A − B

where –

Ais the amount of the capital expenditure originally incurred on the construction of the building or structure, and

Bis the amount of the writing-down allowances which would have been made under this section in respect of the capital expenditure referred to in A for the period to the day before the vesting day if a claim for those allowances had been duly made and allowed.

(4)Where the interest in a building or structure which is the relevant interest in relation to any expenditure is sold while the building or structure is an industrial building or structure, then, subject to any further adjustment under this subsection on a later sale, the writing-down allowance for any chargeable period, if that chargeable period or its basis period ends after the time of the sale, shall be the residue (within the meaning of section 277) of that expenditure immediately after the sale, reduced in the proportion (if it is less than one) which the length of the chargeable period bears to the part unexpired at the date of the sale of the period of –

(a)in relation to a building or structure which is to be regarded as an industrial building or structure within the meaning of paragraph (a) or (b) of section 268(1) –

(i)50 years beginning with the time when the building or structure was first used, in the case where the capital expenditure on the construction of the building or structure was incurred before the 16th day of January, 1975, or

(ii)25 years beginning with the time when the building or structure was first used, in the case where the capital expenditure on the construction of the building or structure is incurred on or after the 16th day of January, 1975,

(b)in relation to a building or structure which is to be regarded as an industrial building or structure within the meaning of paragraph (c) or (e) of section 268 (1), 10 years beginning with the time when the building or structure was first used,

(i)10 years beginning with the time when the building or structure was first used, in the case where the capital expenditure on the construction of the building or structure was incurred before the 27th day of January, 1994,

(ii)7 years beginning with the time when the building or structure was first used, in the case where the capital expenditure on the construction of the building or structure is incurred on or after the 27th day of January, 1994, or

(iii)subject to subsections (8) and (9), 25 years beginning with the time when the building or structure was first used, in the case where the capital expenditure on the construction (within the meaning of section 270) of the building or structure is incurred on or after 4 December 2002,

(d)in relation to a building or structure which is to be regarded as an industrial building or structure within the meaning of section 268(1)(d) by reason of its use as a holiday cottage, 10 years beginning with the time when the building or structure was first used,

(da)in relation to a building or structure which is to be regarded as an industrial building or structure within the meaning of section 268(1)(d) by reason of its use as a guest house or a holiday hostel to which section 268(2C) applies, 25 years beginning with the time when the building or structure was first used, in the case where the capital expenditure on the construction (within the meaning of section 270) of the building or structure is incurred on or after 3 February 2005,

(i)25 years beginning with the time when the building or structure was first used, or

(ii)where capital expenditure on the refurbishment of the building or structure is incurred, 25 years beginning with the time when the building or structure was first used subsequent to the incurring of that expenditure,

in the case where the capital expenditure on the construction (within the meaning of section 270) of the building or structure is incurred on or after 1 January 2008,

(e)in relation to a building or structure which is to be regarded as an industrial building or structure within the meaning of section 268(1)(f), 25 years beginning with –

(i)the time when the building or structure was first used, or

(ii)in the case of a building or structure to which subsection (3B) applies, the vesting day,

(f)subject to paragraph (fa), in relation to a building or structure which is to be regarded as an industrial building or structure within the meaning of paragraph (g) or (i) of section 268(1) –

(i)7 years beginning with the time when the building or structure was first used, or

(ii)as respects a building or structure which is first used on or after 1 February 2007, 15 years beginning with the time when the building or structure was first used, or

(iii)where capital expenditure on the refurbishment of the building or structure is incurred and, subsequent to the incurring of that expenditure, the building or structure is first used on or after 1 February 2007, 15 years beginning with the time when the building or structure was first used subsequent to the incurring of that expenditure,

(fa)where subsection (8) of section 270 applies in relation to a qualifying residential unit as is referred to in subsection (4)(i) of that section―

(i)20 years beginning with the time when the unit was first used, or

(ii)where capital expenditure on the refurbishment of the unit is incurred, 20 years beginning with the time when the unit was first used subsequent to the incurring of that expenditure,

(g)in relation to a building or structure which is to be regarded as an industrial building or structure within the meaning of section 268(1)(h), 25 years beginning with –

(i)the time when the building or structure was first used, or

(ii)as respects a building or structure to which subsection (3A) applies –

(I)in the case of Dublin Airport Authority, the vesting day, and

(II)in the case of any other person, the date of the passing of the Finance Act, 1998,

(ga)in relation to a building or structure which is to be regarded as an industrial building or structure within the meaning of paragraph (j) of section 268(1) –

(i)7 years beginning with the time when the building or structure was first used, or

(ii)as respects a building or structure which is first used on or after 1 February 2007, 15 years beginning with the time when the building or structure was first used, or

(h)in relation to a building or structure which is to be regarded as an industrial building or structure within the meaning of paragraph (k) of section 268(1), 7 years beginning with the time when the building or structure was first used, and

(i)in relation to a building or structure which is to be regarded as an industrial building or structure within the meaning of paragraph (l) of section 268(1) –

(I)15 years beginning with the time when the building or structure was first used, or

(II)where capital expenditure on the refurbishment of the building or structure is incurred, 15 years beginning with the time when the building or structure was first used subsequent to the incurring of that expenditure.

(k)in relation to a building or structure which is to be regarded as an industrial building or structure within the meaning of paragraph (n) of section 268(1) –

(i)where the expenditure is specified capital expenditure, 7 years beginning with the time when –

(I)the building or structure was first used, or

(II)where the expenditure is incurred on refurbishment, the building or structure was first used subsequent to the incurring of that expenditure,

and

(ii)where the expenditure is not specified capital expenditure, 25 years beginning with the time when –

(I)the building or structure was first used, or

(II)where the expenditure is incurred on refurbishment, the building or structure was first used subsequent to the incurring of that expenditure.

(5)In ascertaining a writing-down allowance to be made to a person under subsection (4), the residue of expenditure mentioned in that subsection shall, where it exceeds the amount of expenditure incurred by that person in respect of the sale, be taken to be the amount of the expenditure so incurred.

(6)Notwithstanding any other provision of this section, in no case shall the amount of a writing-down allowance made to a person for any chargeable period in respect of any expenditure exceed what, apart from the writing off to be made by reason of the making of that allowance, would be the residue of that expenditure at the end of that chargeable period or its basis period.

(7)For the purposes of this section, where a writing-down allowance has been made to a person for any chargeable period in respect of capital expenditure incurred on the construction of a building or structure within the meaning of paragraph (d) of section 268(1) and at the end of a chargeable period or its basis period the building or structure is not in use for the purposes specified in that paragraph, then, in relation to that expenditure –

(a)the building or structure shall not be treated as ceasing to be an industrial building or structure if, on the cessation of its use for the purposes specified in paragraph (d) of section 268(1), it is converted to use for the purposes specified in paragraph (g) of that section and at the end of the chargeable period or its basis period it is in use for those latter purposes, and

(b)as respects that chargeable period or its basis period and any subsequent chargeable period or basis period of it, the building or structure shall, notwithstanding the cessation of its use for the purposes specified in paragraph (d) of section 268(1), be treated as if it were in use for those purposes if at the end of the chargeable period or its basis period the building or structure is in use for the purposes specified in paragraph (g) of that section.

(8)Subsections (3)(c)(iii) and (4)(c)(iii) (as inserted by the Finance Act 2003) shall not apply as respects capital expenditure incurred on or before 31 December 2006 on the construction or refurbishment of a building or structure if –

(a)

(i)a planning application (not being an application for outline permission within the meaning of section 36 of the Planning and Development Act 2000), in so far as planning permission is required, in respect of the building or structure is made in accordance with the Planning and Development Regulations 2001 to 2002,

(ii)an acknowledgement of the application, which confirms that the application was received on or before 31 December 2004, is issued by the planning authority in accordance with article 26(2) of the Planning and Development Regulations 2001 (S.I. No. 600 of 2001), and

(iii)the application is not an invalid application in respect of which a notice is issued by the planning authority in accordance with article 26(5) of those regulations,

(b)

(i)a planning application, in so far as planning permission was required, in respect of the building or structure was made in accordance with the Local Government (Planning and Development) Regulations 1994 (S.I. No. 86 of 1994), not being an application for outline permission within the meaning of article 3 of those regulations,

(iii)the application was not an invalid application in respect of which a notice was issued by the planning authority in accordance with article 29(2)(b)(i) of those regulations,

(ba)where the construction or refurbishment work on the building or structure represented by that expenditure is exempted development for the purposes of the Planning and Development Act 2000 by virtue of section 4 of that Act or by virtue of Part 2 of the Planning and Development Regulations 2001 (S.I. No. 600 of 2001) and –

(i)a detailed plan in relation to the development work is prepared,

(ii)a binding contract in writing, under which the expenditure on the development is incurred, is in existence, and

(iii)work to the value of 5 per cent of the development costs is carried out,

not later than 31 December 2004.

(c)

(i)the construction or refurbishment of the building or structure is a development in respect of which an application for a certificate under section 25(7)(a)(ii) of the Dublin Docklands Development Authority Act 1997 is made to the Authority (within the meaning of that Act),

(ii)an acknowledgement of the application, which confirms that the application was received on or before 31 December 2004, is issued by that Authority, and

(iii)the application is not an invalid application.

(9)Subsections (3)(c)(iii) and (4)(c)(iii) shall not apply as respects capital expenditure incurred on or before 31 July 2008 on the construction or refurbishment of a building or structure if –

(a)the conditions of paragraph (a), (b), (ba) or (c), as the case may be, of subsection (8) have been satisfied,

(b)subject to paragraphs (a) and (b) of section 270(7) –

(i)the person who is constructing or refurbishing the building or structure has, on or before 31 December 2006, carried out work to the value of not less than 15 per cent of the actual construction or, as the case may be, refurbishment costs of the building or structure, and

(ii)the person referred to in subparagraph (i) or, where the building or structure is sold by that person, the person who is claiming a deduction under this Chapter in relation to the expenditure incurred, can show that the condition in subparagraph (i) was satisfied,

(c)a binding contract in writing under which expenditure on the construction or refurbishment of the building or structure is incurred was in existence on or before 31 July 2006, and

(d)such other conditions, as may be specified in regulations made for the purposes of this paragraph by the Minister for Finance, have been satisfied; but such conditions shall be limited to those necessary to ensure compliance with the laws of the European Communities governing State aid or with a decision of the Commission of the European Communities as to whether aid to which this subsection relates is compatible with the common market having regard to Article 87 of the European Communities Treaty.

273.

Acceleration of writing-down allowances in respect of certain expenditure on certain industrial buildings or structures.

(1)In this section –

“industrial development agency” means the Industrial Development Authority, Shannon Free Airport Development Company Limited or Údarás na Gaeltachta;

“qualifying expenditure” means capital expenditure incurred on or after the 2nd day of February, 1978, by the person to whom the allowance under section 272 is to be made on the construction of a building or structure which is to be an industrial building or structure occupied by that person for a purpose specified in paragraph (a), (b) or (d) of section 268(1), but excluding such expenditure incurred for the purposes of the trade of hotel-keeping unless it is incurred on the construction of premises which are registered in a register kept by the National Tourism Development Authority under the Tourist Traffic Acts, 1939 to 1995.

(2)

(a)Subject to this section, where for any chargeable period an allowance is to be made under section 272 in respect of qualifying expenditure, the allowance shall, subject to subsection (6) of that section, be increased by such amount as is specified by the person to whom the allowance is to be made and, in relation to a case in which this subsection has applied, any reference in the Tax Acts to an allowance made under section 272 shall be construed as a reference to that allowance as increased under this section.

(b)As respects any qualifying expenditure incurred on or after the 1st day of April, 1988, any allowance made under section 272 and increased under paragraph (a) in respect of that expenditure, whether claimed for one chargeable period or more than one such period, shall not in the aggregate exceed –

(i)if the qualifying expenditure was incurred before the 1st day of April, 1989, 75 per cent,

(ii)if the qualifying expenditure was incurred on or after the 1st day of April, 1989, and before the 1st day of April, 1991, 50 per cent, or

(iii)if the qualifying expenditure was incurred on or after the 1st day of April, 1991, and before the 1st day of April, 1992, 25 per cent,

of the amount of that qualifying expenditure.

(3)Notwithstanding subsection (2), but subject to subsections (4) and (6) –

(a)no allowance made under section 272 in respect of qualifying expenditure incurred on or after the 1st day of April, 1992, shall be increased under this section, and

(b)as respects chargeable periods ending on or after the 6th day of April, 1999, no allowance made under section 272 in respect of qualifying expenditure incurred before the 1st day of April, 1992, shall be increased under this section.

(4)This section shall apply in relation to capital expenditure incurred on the construction of an industrial building or structure to which subsection (5) applies as if subsections (2)(b) and (3) were deleted.

(5)This subsection shall apply to –

(a)an industrial building or structure provided –

(i)before the 23rd day of April, 1996, for use for the purposes of trading operations, or

(ii)on or after the 23rd day of April, 1996, by a company for use for the purposes of trading operations carried on by the company,

(b)an industrial building or structure the expenditure on the provision of which was incurred before the 31st day of December, 1995, under a binding contract entered into on or before the 27th day of January, 1988, and

(c)an industrial building or structure provided for the purposes of a project approved by an industrial development agency on or before the 31st day of December, 1988, and in respect of the provision of which expenditure was incurred before the 31st day of December, 1995; but, as respects an industrial building or structure provided for the purposes of a project approved by an industrial development agency in the period from the 1st day of January, 1986, to the 31st day of December, 1988, this paragraph shall apply as if the reference to the 31st day of December, 1995, were a reference to the 31st day of December, 1996.

(6)This section shall apply in relation to capital expenditure incurred on the construction of a building or structure which is to be an industrial building or structure to which subsection (7)(a) applies –

(a)as if in subsection (2)(b) –

(i)the following subparagraph were substituted for subparagraph (ii):

“(ii)if the qualifying expenditure is incurred on or after the 1st day of April, 1989, 50 per cent,”,

and

(ii)subparagraph (iii) were deleted,

and

(b)as if subsection (3) were deleted.

(7)

(a)This subsection shall apply to –

(i)an industrial building or structure provided for the purposes of a project approved for grant assistance by an industrial development agency in the period from the 1st day of January, 1989, to the 31st day of December, 1990, and in respect of the provision of which expenditure is incurred before the 31st day of December, 1997, or before the 30th day of June, 1998, if such expenditure would have been incurred before the 31st day of December, 1997, but for the existence of circumstances which resulted in legal proceedings being initiated, being proceedings which were the subject of an order of the High Court made before the 1st day of January, 1998; but, as respects an industrial building or structure provided for the purposes of any such project specified in the list referred to in section 133(8)(c)(iv), this paragraph shall apply as if the reference to the 31st day of December, 1997, where it first occurs, were a reference to the 31st day of December, 2002, and

(ii)a building or structure which is to be an industrial building or structure within the meaning of section 268(1)(d) and in respect of the provision of which expenditure was incurred before the 31st day of December, 1995, where a binding contract for the provision of the building or structure was entered into before the 31st day of December, 1990.

(b)Paragraph (a)(ii) shall not apply if the building or structure referred to in that paragraph is not registered within 6 months after the date of the completion of that building or structure in a register kept by the National Tourism Development Authority under the Tourist Traffic Acts, 1939 to 1995, and where by virtue of this section any allowance or increased allowance has been granted, any necessary additional assessments may be made to give effect to this paragraph.

(8)Where for any chargeable period an allowance under section 272 in respect of qualifying expenditure is increased under this section, no allowance under section 271 shall be made in respect of that qualifying expenditure for that or any subsequent chargeable period.

274.

Balancing allowances and balancing charges.

(1)

(a)Where any capital expenditure has been incurred on the construction of a building or structure in respect of which an allowance has been made under this Chapter, and any of the following events occurs –

(i)the relevant interest in the building or structure is sold,

(ii)that interest, being a leasehold interest, comes to an end otherwise than on the person entitled to the leasehold interest acquiring the interest which is reversionary on the leasehold interest,

(iii)the building or structure is demolished or destroyed or, without being demolished or destroyed, ceases altogether to be used, or

(iv)subject to subsection (2), where consideration (other than rent or an amount treated or, as respects consideration received on or after the 26th day of March, 1997, partly treated as rent under section 98) is received by the person entitled to the relevant interest in respect of an interest which is subject to that relevant interest,

an allowance or charge (in this Chapter referred to as a “balancing allowance” or a “balancing charge”) shall, in the circumstances mentioned in this section, be made to or on, as the case may be, the person entitled to the relevant interest immediately before that event occurs, for the chargeable period related to that event.

(b)Notwithstanding paragraph (a) and subsection (2A)(b), no balancing allowance or balancing charge shall be made by reason of any event referred to in that paragraph occurring more than –

(i)in relation to a building or structure which is to be regarded as an industrial building or structure within the meaning of paragraph (a) or (b) of section 268(1) –

(I)50 years after the building or structure was first used, in the case where the capital expenditure on the construction of the building or structure was incurred before the 16th day of January, 1975, or

(II)25 years after the building or structure was first used, in the case where the capital expenditure on the construction of the building or structure is incurred on or after the 16th day of January, 1975,

(ii)in relation to a building or structure which is to be regarded as an industrial building or structure within the meaning of paragraph (c) or (e) of section 268(1), 10 years after the building or structure was first used,

(iia)subject to subparagraph (iib), in relation to a building or structure which is to be regarded as an industrial building or structure within the meaning of paragraph (g) or (i) of section 268(1) –

(I)10 years after the building or structure was first used, or

(II)as respects a building or structure which is first used on or after 1 February 2007, 15 years after the building or structure was first used, or

(III)where capital expenditure on the refurbishment of the building or structure is incurred and, subsequent to the incurring of that expenditure, the building or structure is first used on or after 1 February 2007, 15 years after the building or structure was first used subsequent to the incurring of that expenditure,

(iib)where subsection (8) of section 270 applies in relation to a qualifying residential unit as is referred to in subsection (4)(i) of that section―

(I)20 years after the unit was first used, or

(II)where capital expenditure on the refurbishment of the unit is incurred, 20 years after the unit was first used subsequent to the incurring of that expenditure,

(iii)in relation to a building or structure which is to be regarded as an industrial building or structure within the meaning of section 268(1)(d), other than a building or structure to which subparagraph (iv), (iva) or (ivb) relates –

(I)10 years after the building or structure was first used, in the case where the capital expenditure on the construction of the building or structure was incurred before the 27th day of January, 1994,

(II)7 years after the building or structure was first used, in the case where the capital expenditure on the construction of the building or structure is incurred on or after the 27th day of January, 1994, or

(III)subject to subsections (1A) and (1B), 25 years after the building or structure was first used, in the case where the capital expenditure on the construction (within the meaning of section 270) of the building or structure is incurred on or after 4 December 2002,

(iv)in relation to a building or structure which is to be regarded as an industrial building or structure within the meaning of section 268(1)(d) by reason of its use as a holiday cottage, 10 years after the building or structure was first used,

(iva)in relation to a building or structure which is to be regarded as an industrial building or structure within the meaning of section 268(1)(d) by reason of its use as a guest house or a holiday hostel to which section 268(2C) applies, 25 years after the building or structure was first used, in the case where the capital expenditure on the construction (within the meaning of section 270) of the building or structure is incurred on or after 3 February 2005,

(ivb)in relation to a building or structure which is to be regarded as an industrial building or structure within the meaning of section 268(1)(d) by reason of being comprised in, and in use as part of, premises which are registered in the register of caravan sites and camping sites kept under the Tourist Traffic Acts 1939 to 2003 –

(i)25 years after the building or structure was first used, or

(ii)where capital expenditure on the refurbishment of the building or structure is incurred, 25 years after the building or structure was first used subsequent to the incurring of that expenditure,

in the case where the capital expenditure on the construction (within the meaning of section 270) of the building or structure is incurred on or after 1 January 2008,

(v)in relation to a building or structure which is to be regarded as an industrial building or structure within the meaning of section 268(1)(f), 25 years after –

(I)the building or structure was first used, or

(II)in the case of a building or structure to which section 272(3B) applies, the vesting day,

(vi)in relation to a building or structure which is to be regarded as an industrial building or structure within the meaning of section 268(1)(h), 25 years after –

(I)the building or structure was first used, or

(II)as respects a building or structure to which section 272(3A) applies –

(A)in the case of Dublin Airport Authority, the vesting day, and,

(B)in the case of any other person, the date of the passing of the Finance Act, 1998,

(via)in relation to a building or structure which is to be regarded as an industrial building or structure within the meaning of paragraph (j) of section 268(1) –

(I)10 years after the building or structure was first used, or

(II)as respects a building or structure which is first used on or after 1 February 2007, 15 years after the building or structure was first used, or

(vii)in relation to a building or structure which is to be regarded as an industrial building or structure within the meaning of paragraph (k) of section 268(1), 10 years after the building or structure was first used,

(viii)in relation to a building or structure which is to be regarded as an industrial building or structure within the meaning of paragraph (l) of section 268(1) –

(I)15 years after the building or structure was first used, or

(II)where capital expenditure on the refurbishment of the building or structure is incurred, 15 years after the building or structure was first used subsequent to the incurring of that expenditure, and

(x)in relation to a building or structure which is to be regarded as an industrial building or structure within the meaning of paragraph (n) of section 268(1) –

(I)where the expenditure is specified capital expenditure –

(A)7 years after the building or structure was first used, or

(B)where the expenditure is incurred on refurbishment of the building or structure, 7 years after the building or structure was first used subsequent to the incurring of that expenditure,

and

(II)where the expenditure is not specified capital expenditure –

(A)25 years after the building or structure was first used, or

(B)where the expenditure is incurred on refurbishment of the building or structure, 25 years after the building or structure was first used subsequent to the incurring of that expenditure.

(1A)Subsection (1)(b)(iii)(III) (as inserted by the Finance Act 2003) shall not apply as respects capital expenditure incurred on or before 31 December 2006 on the construction or refurbishment of a building or structure if –

(a)

(i)a planning application (not being an application for outline permission within the meaning of section 36 of the Planning and Development Act 2000), in so far as planning permission is required, in respect of the building or structure is made in accordance with the Planning and Development Regulations 2001 to 2002,

(iii)the application is not an invalid application in respect of which a notice is issued by the planning authority in accordance with article 26(5) of those regulations,

(b)

(iii)the application was not an invalid application in respect of which a notice was issued by the planning authority in accordance with article 29(2)(b)(i) of those regulations,

(i)a detailed plan in relation to the development work is prepared,

(ii)a binding contract in writing, under which the expenditure on the development is incurred, is in existence, and

(iii)work to the value of 5 per cent of the development costs is carried out,

not later than 31 December 2004.

(c)

(i)the construction or refurbishment of the building or structure is a development in respect of which an application for a certificate under section 25(7)(a)(ii) of the Dublin Docklands Development Authority Act 1997 is made to the Authority (within the meaning of that Act),

(ii)an acknowledgement of the application, which confirms that the application was received on or before 31 December 2004, is issued by that Authority, and

(iii)the application is not an invalid application.

(1B)Subsection (1)(b)(iii)(III) shall not apply as respects capital expenditure incurred on or before 31 July 2008 on the construction or refurbishment of a building or structure if –

(a)the conditions of paragraph (a), (b), (ba) or (c), as the case may be, of subsection (1A) have been satisfied,

(b)subject to paragraphs (a) and (b) of section 270(7) –

(c)a binding contract in writing under which expenditure on the construction or refurbishment of the building or structure is incurred was in existence on or before 31 July 2006, and

(2)Subsection (1)(a)(iv) shall not apply as respects the relevant interest in a building or structure in use for the purposes of a trade or part of a trade of hotel-keeping where a binding contract for the provision of the building or structure was entered into after the 27th day of January, 1988, and before the 1st day of June, 1988.

(2A)

(a)In this subsection ‘relevant facility’ means a building or structure which –

(i)is in use for the purposes of a trade referred to in paragraph (g) of section 268(1),

(ii)is in use as a qualifying residential unit (within the meaning of section 268(3A)) which, by virtue of section 268(3B), is deemed to be a building or structure referred to in subparagraph (i),

(iii)is in use for the purposes of a trade referred to in paragraph (i) of section 268(1),

(iv)is in use for the purposes of a trade referred to in paragraph (j) of section 268(1),

(v)is in use for the purposes of a trade referred to in paragraph (l) (as inserted by the Finance Act 2006) of section 268(1), or

(vi)is a qualifying premises (within the meaning of section 843A(1)) which is in use for the purposes of providing the service or services referred to in paragraph (b) of the definition of ‘qualifying premises’ in that section.

(b)Where –

(i)a building or structure is a relevant facility to which subparagraph (i), (ii), (iii), (iv), (v) or (vi) of paragraph (a) applies,

(ii)an allowance has been made under this Chapter in respect of capital expenditure incurred on the construction or refurbishment of the building or structure, and

(iii)the building or structure concerned ceases to be a relevant facility,

then, subject to paragraph (c), such cessation shall be treated as an event which gives rise to a balancing charge under this section and that balancing charge shall be made on the person entitled to the relevant interest in the building or structure concerned immediately before that event occurs, for the chargeable period related to that event.

(c)Paragraph (b) shall not apply if, within 6 months of the cessation referred to in subparagraph (iii) of that paragraph, the building or structure concerned is again a relevant facility by virtue of the application of any subparagraph of paragraph (a), other than the subparagraph by virtue of which the building or structure was previously treated as a relevant facility.

(3)Where there are no sale, insurance, salvage or compensation moneys, or consideration of the type referred to in subsection (1)(a)(iv), or where the residue of the expenditure immediately before the event exceeds those moneys or that consideration, a balancing allowance shall be made, and the amount of that allowance shall be the amount of that residue or, as the case may be, of the excess of that residue over those moneys or that consideration; but this subsection shall not apply in the case of consideration of the type referred to in subsection (1)(a)(iv) which is received on or after 5 March 2001.

(4)Where the sale, insurance, salvage or compensation moneys, or consideration of the type referred to in subsection (1)(a)(iv), exceed the residue, if any, of the expenditure immediately before the event, a balancing charge shall be made, and the amount on which it is made shall be an amount equal to the excess or, where the residue is nil, to those moneys or that consideration.

(5)

(a)In this subsection, “the relevant period” means the period beginning when the building or structure was first used for any purpose and ending –

(i)if the event giving rise to the balancing allowance or balancing charge occurs on the last day of a chargeable period or its basis period, on that day, or

(ii)in any other case, on the latest date before that event which is the last day of a chargeable period or its basis period;

but where before that event the building or structure has been sold while an industrial building or structure, the relevant period shall begin on the day following that sale or, if there has been more than one such sale, the last such sale.

(b)Where a balancing allowance or a balancing charge is to be made to or on a person, and any part of the relevant period is not comprised in a chargeable period for which a writing-down allowance has been made to such person or is not comprised in the basis period for such chargeable period, the amount of the balancing allowance or, as the case may be, the amount on which the balancing charge is to be made shall be reduced in the proportion which the part or parts so comprised bears to the whole of the relevant period.

(c)Notwithstanding paragraph (b), where but for section 272(6) or 321(5) a writing-down allowance would have been made to a person for any chargeable period, the part of the relevant period comprised in that chargeable period or its basis period shall be deemed for the purposes of this subsection to be comprised in a chargeable period for which a writing-down allowance was made to the person.

(6)Where a building or structure which is to be regarded as an industrial building or structure within the meaning of section 268(1)(d) by reason of its use as a holiday cottage ceases to be comprised in premises registered in a register referred to in section 268 in such circumstances that apart from this subsection this section would not apply in relation to the building or structure, the relevant interest in the building or structure shall for the purposes of this Chapter (other than section 272(4)) be deemed on such cesser to have been sold while the building or structure was an industrial building or structure and the net proceeds of the sale shall be deemed for those purposes to be an amount equal to the capital expenditure incurred on the construction of the building or structure.

(7)Where a balancing charge is made under this section by virtue of subsection (6) and the relevant interest in the building or structure is not subsequently sold by the person on whom the charge is made while the building or structure is not an industrial building or structure, such person shall, if the building or structure again becomes comprised in a premises registered in a register referred to in section 268, be treated for the purposes of this Chapter as if, at the time of the cesser referred to in subsection (6), such person were the buyer of the relevant interest deemed under that subsection to have been sold.

(8)Notwithstanding any other provision of this section, in no case shall the amount on which a balancing charge is made on a person in respect of any expenditure on the construction of a building or structure exceed the amount of the industrial building allowance, if any, made to such person in respect of that expenditure together with the amount of any writing-down allowances made to such person in respect of that expenditure for chargeable periods which end on or before the date of the event giving rise to the charge or, as the case may be, for chargeable periods for which the basis periods end on or before that date.

275.

Restriction of balancing allowances on sale of industrial building or structure.

(1)In this section –

“inferior interest” means any interest in or right over the building or structure in question, whether granted by the relevant person or by someone else;

“premium” includes any capital consideration except so much of any sum as corresponds to any amount of rent or profits which is to be computed by reference to that sum under section 98;

“capital consideration” means consideration which consists of a capital sum or would be a capital sum if it had taken the form of a money payment;

“rent” includes any consideration which is not capital consideration;

“commercial rent” means such rent as might reasonably be expected to have been required in respect of the inferior interest in question, having regard to any premium payable for the grant of the interest, if the transaction had been at arm’s length.

(2)This section shall apply where –

(a)the relevant interest in a building is sold subject to an inferior interest,

(b)by virtue of the sale a balancing allowance under section 274 would apart from this section be made to or for the benefit of the person (in this section referred to as “the relevant person”) who was entitled to the relevant interest immediately before the sale, and

(c)either –

(i)the relevant person, the person to whom the relevant interest is sold and the grantee of the inferior interest, or any 2 of them, are connected with each other, or

(ii)it appears with respect to the sale or the grant of the inferior interest, or with respect to transactions including the sale or grant, that the sole or main benefit which but for this section might have been expected to accrue to the parties or any of them was the obtaining of an allowance or deduction under this Chapter.

(3)For the purposes of section 274, the net proceeds to the relevant person of the sale –

(a)shall be taken to be increased by an amount equal to any premium receivable by the relevant person for the grant of the inferior interest, and

(b)where no rent or no commercial rent is payable in respect of the inferior interest, shall be taken to be the sum of –

(i)what those proceeds would have been if a commercial rent had been payable and the relevant interest had been sold in the open market, and

(ii)any amount to be added under paragraph (a);

but the net proceeds of the sale shall not by virtue of this subsection be taken to be greater than such amount as will secure that no balancing allowance is to be made.

(4)Where subsection (3) operates in relation to a sale to deny or reduce a balancing allowance in respect of any expenditure, the residue of that expenditure immediately after the sale shall be calculated for the purposes of this Chapter as if that balancing allowance had been made or, as the case may be, had not been reduced.

(5)Where the terms on which the inferior interest is granted are varied before the sale of the relevant interest, any capital consideration for the variation shall be treated for the purposes of this section as a premium for the grant of the interest, and the question whether any and, if so, what rent is payable in respect of the interest shall be determined by reference to the terms as in force immediately before the sale.

276.

Application of sections 272 and 274 in relation to capital expenditure on refurbishment.

(1)In this section, “refurbishment” means any work of construction, reconstruction, repair or renewal, including the provision or improvement of water, sewerage or heating facilities, carried out in the course of repair or restoration, or maintenance in the nature of repair or restoration, of a building or structure.

(2)Notwithstanding any other provision of the Tax Acts, where on or after the 6th day of April, 1991, any capital expenditure has been incurred on the refurbishment of a building or structure in respect of which an allowance is to be made for the purposes of income tax or corporation tax, as the case may be, under this Chapter, sections 272 and 274 shall apply as if “the capital expenditure on refurbishment of the building or structure was incurred” were substituted for “the building or structure was first used” in each place where it occurs in sections 272(4) and 274(1)(b).

(3)For the purposes of giving effect to this section in so far as the computation of a balancing allowance or balancing charge is concerned, all such apportionments shall be made as are in the circumstances just and reasonable.

277.

Writing off of expenditure and meaning of “residue of expenditure”.

(1)For the purposes of this Chapter, any expenditure incurred on the construction of any building or structure shall be treated as written off to the extent and at the times specified in this section, and references in this Chapter to the residue of any such expenditure shall be construed accordingly.

(2)Where an industrial building allowance is made in respect of the expenditure, the amount of that allowance shall be written off at the time when the building or structure is first used.

(3)Where, by reason of the building or structure being at any time an industrial building or structure, a writing-down allowance is made for any chargeable period in respect of the expenditure, the amount of that allowance shall be written off at that time; but, where at that time an event occurs which gives rise or may give rise to a balancing allowance or balancing charge, the amount directed to be written off by this subsection at that time shall be taken into account in computing the residue of that expenditure immediately before that event for the purpose of determining whether any, and if so what, balancing allowance or balancing charge is to be made.

(4)

(a)Where, for any period or periods between the time when the building or structure was first used for any purpose and the time at which the residue of the expenditure is to be ascertained, the building or structure has not been in use as an industrial building or structure, there shall in ascertaining that residue be treated as having been previously written off in respect of that period or those periods amounts equal to writing-down allowances made for chargeable periods of a total length equal to the length of that period, or the aggregate length of those periods, as the case may be, at such rate or rates as would have been appropriate having regard to any sale on which section 272(4) operated.

(b)Where the building or structure was in use as an industrial building or structure at the end of the basis period for any year of assessment before the year 1960-71, an amount equal to 2 per cent of the expenditure shall be treated as written off at the end of the previous year of assessment.

(5)Where on the occasion of a sale a balancing allowance is made in respect of the expenditure, there shall be written off at the time of the sale the amount by which the residue of the expenditure before the sale exceeds the net proceeds of the sale.

(6)Where on the occasion of a sale a balancing charge is made in respect of the expenditure, the residue of the expenditure shall be deemed for the purposes of this Chapter to be increased at the time of the sale by the amount on which the charge is made.

(7)Where, on receipt of consideration of the type referred to in section 274(1)(a)(iv), a balancing allowance is made in respect of the expenditure, there shall be written off at the time of the event giving rise to the balancing allowance or, if later, on the 26th day of March, 1997, the amount by which the residue of the expenditure before that event exceeds that consideration.

278.

Manner of making allowances and charges.

(1)Except in the cases mentioned in this section, any allowance or charge made to or on a person under the preceding provisions of this Part shall be made to or on such person in taxing such person’s trade or, as the case may require, in charging such person’s income under Case V of Schedule D.

(2)An industrial building allowance shall be made to a person by discharge or repayment of tax if such person’s interest in the building or structure is subject to any lease when the expenditure is incurred or becomes subject to any lease before the building or structure is first used for any purpose; but this subsection shall not apply as respects income chargeable under Case V of Schedule D.

(3)A writing-down allowance shall be made to a person for a chargeable period by means of discharge or repayment of tax if such person’s interest is subject to any lease at the end of that chargeable period or its basis period; but this subsection shall not apply as respects income chargeable under Case V of Schedule D.

(4)A balancing allowance shall be made to a person by means of discharge or repayment of tax if such person’s interest is subject to any lease immediately before the event giving rise to the allowance; but this subsection shall not apply as respects income chargeable under Case V of Schedule D.

(5)A balancing charge shall be made on a person under Case IV of Schedule D if such person’s interest is subject to any lease immediately before the event giving rise to the charge and the corresponding income is chargeable under that Case.

(6)Any allowance which under subsections (1) to (4) is to be made otherwise than in taxing a trade shall be available primarily against the following income –

(a)where the income (whether arising by means of rent or receipts in respect of premises or easements or otherwise) from the industrial building or structure in respect of the capital expenditure on which the allowance is given is chargeable under Case V of Schedule D, against income chargeable under that Case,

(b)where the income (whether arising by means of rent or receipts in respect of premises or easements or otherwise) from the industrial building or structure in respect of the capital expenditure on which the allowance is given is chargeable under Case IV of Schedule D, against income chargeable under that Case, or

(c)income chargeable under Case IV or V of Schedule D respectively which is the subject of a balancing charge.

279.

Purchases of certain buildings or structures.

(1)For the purposes of this section –

“the net price paid” means the amount represented by A in the equation –

where –

Bis the amount paid by a person on the purchase of the relevant interest in a building or structure,

Cis the amount of the expenditure actually incurred on the construction of the building or structure, and

Dis the amount of any expenditure actually incurred which is expenditure for the purposes of paragraph (a), (b) or (c) of section 270(2).

(2)Where expenditure is incurred on the construction of a building or structure and, before the building or structure is used or within a period of 2 years after it commences to be used, the relevant interest in the building or structure is sold, then, if an allowance has not been claimed by any other person in respect of that building or structure under this Chapter –

(a)the expenditure actually incurred on the construction of the building or structure shall be disregarded for the purposes of sections 271, 272, 274 and 277, but

(b)the person who buys that interest shall be deemed for those purposes to have incurred, on the date when the purchase price becomes payable, expenditure on the construction of the building or structure equal to that expenditure or to the net price paid by such person for that interest, whichever is the less;

but, where the relevant interest in the building or structure is sold more than once before the building or structure is used or within the period of 2 years after it commences to be used, paragraph (b) shall apply only in relation to the last of those sales.

(3)Where the expenditure incurred on the construction of a building or structure was incurred by a person carrying on a trade which consists, as to the whole or any part of the trade, of the construction of buildings or structures with a view to their sale and, before the building or structure is used or within a period of 2 years after it commences to be used, such person sells the relevant interest in the building or structure in the course of that trade or, as the case may be, of that part of that trade, subsection (2) shall apply subject to the following modifications –

(a)if that sale is the only sale of the relevant interest before the building or structure is used or within the period of 2 years after it commences to be used, subsection (2) shall apply as if in paragraph (b) of that subsection “that expenditure or to” and “, whichever is the less” were deleted, and

(b)if there is more than one sale of the relevant interest before the building or structure is used or within the period of 2 years after it commences to be used, subsection (2) shall apply as if the reference to the expenditure actually incurred on the construction of the building or structure were a reference to the price paid on that sale.

280.

Temporary disuse of building or structure.

(1)For the purposes of this Chapter, a building or structure shall not be deemed to cease altogether to be used by reason that it is temporarily out of use and where, immediately before any period of temporary disuse, a building or structure is an industrial building or structure, it shall be deemed to continue to be an industrial building or structure during the period of temporary disuse.

(2)

(a)Notwithstanding any other provision of this Part as to the manner of making allowances and charges but subject to paragraph (b), where by virtue of subsection (1) a building or structure is deemed to continue to be an industrial building or structure while temporarily out of use, then, if –

(i)on the last occasion on which the building or structure was in use as an industrial building or structure, it was in use for the purposes of a trade which has since been permanently discontinued, or

(ii)on the last occasion on which the building or structure was in use as an industrial building or structure, the relevant interest in the building or structure was subject to a lease which has since come to an end,

any writing-down allowance or balancing allowance to be made to any person in respect of the building or structure during any period for which the temporary disuse continues after the discontinuance of the trade or the coming to an end of the lease shall be made by means of discharge or repayment of tax, and any balancing charge to be made on any person in respect of the building or structure during that period shall be made under Case IV of Schedule D.

(b)Where for a chargeable period the person has income chargeable to tax under Case V of Schedule D and at the end of the chargeable period or its basis period the building or structure is one to which paragraph (a) applies, any writing-down allowance or balancing allowance or balancing charge to be made to or on the person in respect of the building or structure shall be made in charging that person’s income under Case V of Schedule D.

(3)The reference in this section to the permanent discontinuance of a trade does not include a reference to the happening of any event which by virtue of the Income Tax Acts is to be treated as equivalent to the discontinuance of the trade.

281.

Special provisions in regard to leases.

(1)Where with the consent of the lessor a lessee of any building or structure remains in possession of that building or structure after the termination of the lease without a new lease being granted to the lessee, that lease shall be deemed for the purposes of this Chapter to continue so long as the lessee remains so in possession.

(2)Where on the termination of a lease a new lease is granted to the lessee consequent on the lessee being entitled by statute to a new lease or in pursuance of an option available to the lessee under the terms of the first lease, this Chapter shall apply as if the second lease were a continuation of the first lease.

(3)Where on the termination of a lease the lessor pays any sum to the lessee in respect of a building or structure comprised in the lease, this Chapter shall apply as if the lease had come to an end by reason of the surrender of the lease in consideration of the payment.

282.

Supplementary provisions (Chapter 1).

(1)A person who has incurred expenditure on the construction of a building or structure shall be deemed, for the purposes of any provision of this Chapter referring to such person’s interest in the building or structure at the time when the expenditure was incurred, to have had the same interest in the building or structure as such person would have had if the construction of the building or structure had been completed at that time.

(2)Without prejudice to any other provision of this Part relating to the apportionment of sale, insurance, salvage or compensation moneys, the sum paid on the sale of the relevant interest in a building or structure, or any other sale, insurance, salvage or compensation moneys payable in respect of any building or structure, shall for the purposes of this Chapter be deemed to be reduced by an amount equal to so much of that sum or those moneys, as the case may be, as on a just apportionment is attributable to assets representing expenditure other than expenditure in respect of which an allowance may be made under this Chapter.

Chapter 3 Dredging: initial allowances and annual allowances (ss. 302-303)

302.

Interpretation (Chapter 3).

(1)In this Chapter –

“dredging” does not include things done otherwise than in the interests of navigation, but (subject to that) includes the removal of anything forming part of or projecting from the bed of the sea or of any inland water, by whatever means it is removed and whether or not at the time of removal it is wholly or partly above water, and also includes the widening of an inland waterway in the interests of navigation;

“qualifying trade” means any trade or undertaking which, or a part of which, complies with either of the following conditions –
(a)that it consists of the maintenance or improvement of the navigation of a harbour, estuary or waterway, or
(b)that it is for a purpose set out in section 268(1),
but, where part only of a trade or undertaking complies with paragraph (a) or (b), section 303(5) shall apply as if the part which does and the part which does not so comply were separate trades.

(2)For the purposes of this Chapter, the first relevant chargeable period, in relation to expenditure incurred by any person, shall be the chargeable period related to the following event or occasion –

(a)the incurring of the expenditure, or

(b)in the case of expenditure for which allowances are to be made by virtue of section 303(6), the occasion when that person first both carries on the trade or part of the trade for the purposes of which the expenditure was incurred, and occupies for the purposes of that trade or part of the trade the dock or other premises in connection with which the expenditure was incurred.

303.

Allowances for expenditure on dredging.

(1)

(a)Subject to this section, where for the purposes of any qualifying trade carried on by a person the person incurs capital expenditure on dredging, and either the trade consists of the maintenance or improvement of the navigation of a harbour, estuary or waterway or the dredging is for the benefit of vessels coming to, leaving or using any dock or other premises occupied by the person for the purposes of the trade, then –

(i)an initial allowance equal to 10 per cent of the expenditure shall be made for the first relevant chargeable period to the person incurring the expenditure, and

(ii)writing-down allowances shall be made in respect of that expenditure to the person for the time being carrying on the trade during a writing-down period of 50 years beginning with the first relevant chargeable period; but, where a writing-down allowance is to be made for a year of assessment to such a person and such person is within the charge to income tax in respect of the trade for part only of that year, that part shall be treated as a separate chargeable period for the purposes of computing allowances under this section.

(b)This subsection shall not apply to any expenditure incurred before the 30th day of September, 1956.

(2)Where the trade is permanently discontinued in any chargeable period, then, for that chargeable period there shall be made to the person last carrying on the trade, in addition to any other allowance made to that person, an allowance equal to the amount of the expenditure less the allowances made in respect of the expenditure under subsection (1) for that and previous chargeable periods.

(3)For the purposes of this section, a trade shall not be treated by virtue of the Income Tax Acts as discontinued on a change in the persons engaged in carrying it on.

(4)Any allowance under this section shall be made in taxing the trade.

(5)Where expenditure is incurred partly for the purposes of a qualifying trade and partly for other purposes, subsection (1) shall apply to so much only of that expenditure as on a just apportionment ought fairly to be treated as incurred for the purposes of that trade.

(6)Where a person incurs capital expenditure for the purposes of a trade or part of a trade not yet carried on by the person but with a view to carrying it on, or incurs capital expenditure in connection with a dock or other premises not yet occupied by the person for the purposes of a qualifying trade but with a view to so occupying the dock or premises, subsections (1) to (5) shall apply as if the person had been carrying on the trade or part of the trade or occupying the dock or premises for the purposes of the qualifying trade, as the case may be, at the time when the expenditure was incurred.

(7)Where a person contributes a capital sum to expenditure on dredging incurred by another person, the person shall for the purposes of this section be treated as incurring capital expenditure on that dredging equal to the amount of the contribution, and the capital expenditure incurred by the other person on that dredging shall for those purposes be deemed to be reduced by the amount of the contribution.

(8)No allowance shall be made by virtue of this section in respect of any expenditure if for the same or any other chargeable period an allowance is or can be made in respect of that expenditure under Chapter 1 of this Part.

(9)Notwithstanding any other provision of this section, in determining the allowances to be made under this section in any particular case, there shall be deemed to have been made in that case all such allowances (other than initial allowances) as could have been made if this section had always applied.

Chapter 4 Miscellaneous and general (ss. 304-321)
304. Income tax: allowances and charges in taxing a trade, etc.
(1)This section and section 305 shall apply as respects allowances and charges which are to be made under this Part for the purposes of income tax.

(2)Any claim by a person for an allowance under this Part in charging profits or gains of any description shall be included in the annual statement required to be delivered under the Income Tax Acts of those profits or gains, and the allowance shall be made as a deduction in charging those profits or gains.

(3)

(a)A claim for an industrial building allowance under section 271 shall be accompanied by a certificate signed by the claimant (which shall be deemed to form part of the claim) stating that the expenditure was incurred on the construction of an industrial building or structure and giving such particulars as show that the allowance is to be made.

(b)A claim for an initial allowance under section 283 shall be accompanied by a certificate signed by the claimant (which shall be deemed to form part of the claim) stating that the expenditure was incurred on new machinery or new plant and giving such particulars as show that the allowance is to be made.

(3A)

(a)

(i)In this subsection –

‘relevant period’ means the period beginning on 1 January 2020 and ending on 31 December 2020;

‘specified allowance’ means an allowance referred to in section 531AU(2);

‘relevant allowances’ has the meaning assigned to it in paragraph (b).

(ii)For the purposes of paragraph (b), where the basis period for the year of assessment 2020 is other than the relevant period, the specified allowances of any basis period which overlaps with the relevant period shall be apportioned to the relevant period in proportion to the number of months or fractions of months in the respective periods.

(b)Where an individual carrying on a trade, either solely or in partnership, claims one or more specified allowances, or part of one or more specified allowances, in respect of the relevant period to which, but for the making of a claim under paragraph (c), effect would be given in the following year or years under subsection (4) (in this subsection referred to as the ‘relevant allowances’), the individual may make a claim under paragraph (c).

(c)

(i)Subject to section 395C, an individual may make a claim under this paragraph to have any portion of the relevant allowances carried back and that portion shall, for the purpose of making the assessment to income tax for the year 2019, be added to the amount of the allowances to be made under this Part in taxing the trade for that year.

(ii)Where relief is claimed under this paragraph, effect shall be given in respect of allowances from an earlier period in advance of allowances from a later period.

(iii)Allowances in respect of which a claim is made under this paragraph cannot be used, directly or indirectly, to create or augment a loss under Chapter 2 of Part 12.

(d)If and in so far as relief for relevant allowances is given to an individual under this subsection, the individual shall not be entitled to relief in respect of those relevant allowances under any other provision of the Income Tax Acts.

(4)Where full effect cannot be given in any year to any allowance to be made under this Part in taxing a trade, or in charging profits or gains of any description, as the case may be, owing to there being no profits or gains chargeable for that year, or owing to the profits or gains chargeable being less than the allowance, then, the allowance or part of the allowance to which effect has not been given, as the case may be, shall, for the purpose of making the assessment to income tax for the following year, be added to the amount of the allowances to be made under this Part in taxing the trade or in charging the profits or gains, as the case may be, for that following year, and be deemed to be part of those allowances, or, if there is no such allowance for that following year, be deemed to be the allowance for that following year, and so on for succeeding years.

(5)Any charge to be made under this Part on a person for any chargeable period in taxing the person’s trade or in charging the person’s income under Case V of Schedule D shall be made by means of an assessment or, as the case may be, an amendment of an assessment on or in relation to the person for that period.

(6)

(a)The preceding provisions of this section (other than subsection (3)) shall apply in relation to professions, employments and offices as they apply in relation to trades.

(b)Subsection (3)(b) shall, with any necessary modifications, apply in relation to professions as it applies in relation to trades.

(c)Subsection (4) shall not apply as respects an allowance given by means of discharge or repayment of tax or in charging income under Case V of Schedule D.

305. Income tax: manner of granting, and effect of, allowances made by means of discharge or repayment of tax.
(1)

(a)Where under this Part an allowance is to be made to a person for any year of assessment which is to be given by means of discharge or repayment of tax or in charging income under Case V of Schedule D, and is to be available or available primarily against a specified class of income, the amount of the allowance shall be deducted from or set off against the person’s income of that class for that year of assessment and, if the amount to be allowed is greater than the amount of the person’s income of that class for that year of assessment, the balance shall be deducted from or set off against the person’s income of that class for the next year of assessment, and so on for subsequent years of assessment, and tax shall be discharged or repaid accordingly.

(b)

(i)Notwithstanding paragraph (a), where an allowance referred to in that paragraph is available primarily against income of the specified class and the amount of the allowance is greater than the amount of the person’s income of that class for the first-mentioned year of assessment (after deducting or setting off any allowances for earlier years), then the person may, by notice in writing given to the inspector not later than 2 years after the end of the year of assessment, elect that the excess shall be deducted from or set off –

(I)in the case of an individual –

(A)against the individual’s other income for that year of assessment,

(B)where the individual, or, being a husband or wife, the individual’s spouse, is assessed to tax in accordance with section 1017, firstly, against the individual’s other income for that year of assessment and, subsequently, against the income of the individual’s husband or wife, as the case may be, for that year of assessment, or

(C)where the individual, or, the individual’s civil partner, is assessed to tax in accordance with section 1031C, firstly, against the individual’s other income for that year of assessment and, subsequently, against the income of the individual’s civil partner, for that year of assessment,

(II)in the case of a person other than an individual, against the person’s other income for that year of assessment.

(ii)Where an election is made in accordance with subparagraph (i), the excess shall be deducted from or set off against the income referred to in subclause (A) or (B) of clause (I) or in clause (II), as the case may be, and tax shall be discharged or repaid accordingly and only the balance, if any, of the amount of the excess over all the income referred to in subclause (A) or (B) of clause (I) or in clause (II), as the case may be, for that year of assessment shall be deducted from or set off against the person’s income of the specified class for succeeding years.

(c)Notwithstanding any other provision of this subsection, where under this Part an allowance, the amount of which has been determined in accordance with section 409E(3)(a)(i), is to be made to an individual for any year of assessment and the allowance is to be –

(a)made in charging the specified amount of rent (within the meaning of section 409E) under Case V of Schedule D for that year of assessment, and

(b)is to be available only in charging that specified amount of rent, then –

(i)in charging income under Case V of Schedule D the amount of that allowance shall be deducted from or set off against that specified amount of rent, and

(ii)if the amount of the allowance which would have been made in charging income under Case V of Schedule D if section 409E had not been enacted is greater than that specified amount of rent, the excess shall –

(I)be added to the amount of the allowance to be made to the individual for the next year of assessment under Chapter 1 of this Part in respect of the capital expenditure incurred on the construction or refurbishment of the specified building (within the meaning of section 409E) or the residue of that expenditure (within the meaning of section 409E), and be deemed to be part of the allowance to be so made for that next year, or

(II)if there is no such allowance for that next year, be deemed to be the allowance for that next year,

and so on for subsequent years of assessment, and section 409E(3) shall apply in relation to the resulting allowance to be made for that next year or, as the case may be, for any subsequent year of assessment.

(2)A claim for an allowance under subsection (1) shall be made to and determined by the inspector.

(3)A person aggrieved by a determination of the inspector in relation to a claim by that person for an allowance may appeal the determination to the Appeal Commissioners, in accordance with section 949I, within the period of 30 days after the date of the notice of that determination.

(4)Where any person, for the purpose of obtaining for that person or any other person any relief from or repayment of tax in respect of an allowance mentioned in subsection (1), makes any false statement or false representation, that person shall be liable to a penalty of €3,000.

306.

Meaning of basis period.

(1)In this Part, as it applies for income tax purposes, “basis period” has the meaning assigned to it by this section.

(2)

(a)Subject to paragraph (b), in the case of a person to whom an allowance or on whom a charge is to be made under Case I of Schedule D in charging the profits or gains of the person’s trade or under Case V of Schedule D in charging income arising from rents or receipts in respect of premises or easements, the person’s basis period for any year of assessment shall be the period on the profits or gains of which income tax for that year is to be finally computed under Case I of Schedule D in respect of the trade in question or, as the case may be, under Case V of Schedule D in respect of the income arising from rents or receipts in respect of premises or easements or, where by virtue of the Income Tax Acts the profits or gains or income of any other period are to be taken to be the profits or gains or income of that period, that other period.

(b)In the case of any trade –

(i)where 2 basis periods overlap, the period common to both shall be deemed for the purpose of this subsection to fall in the first basis period only,

(ii)where there is an interval between the end of the basis period for one year of assessment and the basis period for the next year of assessment, then, unless the second-mentioned year of assessment is the year of the permanent discontinuance of the trade, the interval shall be deemed to be part of the second basis period, and

(iii)where there is an interval between the end of the basis period for the year of assessment preceding that in which the trade is permanently discontinued and the basis period for the year in which the permanent discontinuance occurs, the interval shall be deemed to form part of the first basis period.

(3)

(a)Any reference in subsection (2)(b) to the overlapping of 2 periods shall be construed as including a reference to the coincidence of 2 periods or to the inclusion of one period in another, and references to the period common to both of 2 periods shall be construed accordingly.

(b)Any reference in subsection (2)(b) to the permanent discontinuance of a trade shall be construed as including a reference to the occurring of any event which under the Income Tax Acts is to be treated as equivalent to the permanent discontinuance of a trade.

(4)Where an allowance or charge is to be made under Chapter 2 of this Part to or on a person carrying on or holding a profession, employment or office, subsections (1) to (3) shall apply as if the references to a trade included references to a profession, employment or office and as if the references to Case I of Schedule D included references to Case II of Schedule D and Schedule E.

(5)In the case of any other person to whom an allowance or on whom a charge is to be made under this Part, that other person’s basis period for any year of assessment shall be the year of assessment itself.

307.

Corporation tax: allowances and charges in taxing a trade.

(1)In computing for the purposes of corporation tax a company’s profits for any accounting period, there shall be made in accordance with this section and section 308 all such deductions and additions as are required to give effect to the provisions of the Tax Acts which relate to allowances (including investment allowances) and charges in respect of capital expenditure, and subsection (2) and section 308 shall apply as respects allowances and charges which are to be made under those provisions as they apply for the purposes of corporation tax.

(2)

(a)Allowances and charges to be made for any accounting period in taxing a trade shall be given effect by treating the amount of any allowance as a trading expense of the trade in that period and by treating the amount on which any such charge is to be made as a trading receipt of the trade in that period.

(b)

(i)A company to which an industrial building allowance under section 271, an initial allowance under section 283 or an initial allowance under section 303 (1) (a) is to be made in taxing a trade for any accounting period may disclaim the allowance by notice in writing given to the inspector not later than 2 years after the end of that period.

(ii)Any such notice shall be accompanied by a certificate signed by the person by whom the notice is given giving such particulars as show that the allowance would be made if no such notice were given and the amount which would be so made.

(iii)Where notice is given under subparagraph (i) for any accounting period, the inspector may make an assessment to corporation tax on the company for that accounting period on the amount or the further amount which in the inspector’s opinion ought to be charged.

308. Corporation tax: manner of granting, and effect of, allowances made by means of discharge or repayment of tax.
(1)Where an allowance is to be made to a company for any accounting period which is to be given by discharge or repayment of tax or in charging its income under Case V of Schedule D, and is to be available primarily against a specified class of income, it shall, as far as may be, be given effect by deducting the amount of the allowance from any income of the period, being income of the specified class.

(2)Balancing charges for any accounting period which are not to be made in taxing a trade shall, notwithstanding any provision for them to be made under Case IV or V of Schedule D, as the case may be, be given effect by treating the amount on which the charge is to be made as income of the same class as that against which the corresponding allowances are available or primarily available.

(2A)Where a company not resident in the State –

(a)pursuant to section 25(2A), comes within the charge to corporation tax under Case V of Schedule D on 1 January 2022, and

(b)was entitled, immediately prior to that date, under section 305(1)(a), to carry forward an amount of an allowance to a year of assessment subsequent to the year of assessment for which the allowance was made,

then –

(i)subsection (3) shall apply to the amount of the allowance referred to in paragraph (b) as if it were an amount of allowance unallowed from an accounting period ending on 31 December 2021, and

(ii)section 305(1)(a) shall not apply to the amount of allowance to which subsection (3) shall apply in accordance with paragraph (i).

(2B)Where –

(a)a company not resident in the State comes within the charge to corporation tax under Case V of Schedule D pursuant to section 25(2A) on 1 January 2022, and

(b)a balancing allowance or balancing charge is made to or on, as the case may be, the company in respect of an allowance made to the company in a chargeable period ending on or before 31 December 2021,

the amount of the balancing allowance or balancing charge, as the case may be, shall be adjusted as follows:

Badj = (B x 0.2)/R

where –

Badj is the adjusted amount of the balancing allowance or balancing charge, as the case may be,

B is the balancing allowance or balancing charge, as the case may be, and

R is the rate specified in section 21A(3)(a).

(3)Where an allowance which is to be made for any accounting period by means of discharge or repayment of tax, or in charging income under Case V of Schedule D, as the case may be, cannot be given full effect under subsection (1) in that period by reason of a want or deficiency of income of the relevant class, then, so long as the company remains within the charge to corporation tax, the amount unallowed shall be carried forward to the succeeding accounting period, except in so far as effect is given to it under subsection (4), and the amount so carried forward shall be treated for the purposes of this section, including any further application of this subsection, as the amount of a corresponding allowance for that period.

(4)Where an allowance (other than an allowance carried forward from an earlier accounting period) which is to be made for any accounting period by means of discharge or repayment of tax, or in charging income under Case V of Schedule D, as the case may be, and which is available primarily against income of a specified class cannot be given full effect under subsection (1) in that period by reason of a want or deficiency of income of that class, the company may claim that effect shall be given to the allowance against the profits (of whatever description) of that accounting period and, if the company was then within the charge to corporation tax, of preceding accounting periods ending within the time specified in subsection (5), and, subject to that subsection and to any relief for earlier allowances or for losses, the profits of any of those accounting periods shall then be treated as reduced by the amount unallowed under subsection (1), or by so much of that amount as cannot be given effect under this subsection against profits of a later accounting period.

(5)The time referred to in subsection (4) is a time immediately preceding the accounting period first mentioned in subsection (4) equal in length to the accounting period for which the allowance is to be made; but the amount or aggregate amount of the reduction which may be made under that subsection in the profits of an accounting period falling partly before that time shall not, with the amount of any reduction to be made in those profits under any corresponding provision of the Corporation Tax Acts relating to losses, exceed a part of those profits proportionate to the part of the period falling within that time.

(6)A claim under subsection (4) shall be made by notice in writing given to the inspector not later that 2 years from the end of the accounting period in which an allowance cannot be given full effect under subsection (1).

308A.

Assets transferred in course of scheme of reconstruction or amalgamation.

(1)In this section ‘scheme of reconstruction or amalgamation’ means a scheme for the reconstruction of any company or companies or the amalgamation of any 2 or more companies.

(2)Where –

(a)any scheme of reconstruction or amalgamation involves the transfer of the whole or part of the trade of a company (in this section referred to as the ‘transferring company’) to another company (in this section referred to as the ‘ acquiring company’),

(b)

(i)the acquiring company is resident in the State at the time of the transfer, or the acquiring company uses the assets of the transferred trade for the purposes of a trade carried on by it in the State through a branch or agency immediately after that time, and

(ii)the transferring company is resident in the State at the time of the transfer, or the trade was carried on by it in the State through a branch or agency immediately before that time,

and

(c)the transferring company receives no part of the consideration for the transfer (otherwise than by the acquiring company taking over the whole or part of the liabilities of the trade),

then, subject to subsection (4), subsection (3) shall apply in relation to the assets of the trade transferred by the transferring company.

(3)Where this subsection applies –

(a)the transfer shall not be treated as giving rise to any allowance or charge provided for by section 307 or 308, and

(b)there shall be made to or on the acquiring company in accordance with sections 307 and 308 all such allowances and charges as would, if the transferring company had continued to carry on the trade and had continued to use the transferred assets for the purposes of the trade, have been made to or on the transferring company in respect of any assets transferred in the course of the transfer, and the amount of any such allowance or charge shall be computed as if the acquiring company had been carrying on the trade since the transferring company began to do so and as if everything done to or by the transferring company had been done to or by the acquiring company.

(4)Subsection (3) shall not apply as respects assets transferred in the course of a transfer if in consequence of the transfer, or a transaction of which the transfer is a part, the Corporation Tax Acts are to apply subject to subsections (6) to (9) of section 400.

309.

Companies not resident in the State.

Where a company not resident in the State is within the charge to corporation tax in respect of one source of income and to income tax in respect of another source, then, in applying –

(a)this Part,

(b)section 374,

(c)sections 658 and 660,

(d)sections 670 and 672 to 678,

(e)sections 764 and 765,

(f)section 769, and

(g)any other provision of the Tax Acts relating to the making of allowances or charges under or in accordance with the provisions referred to in paragraphs (a) to (f),

allowances relating to any source of income shall be given effect against income chargeable to the same tax as is chargeable on income from that source.

310.

Allowances in respect of certain contributions to capital expenditure of local authorities.

(1)In this section –

“approved scheme” means a scheme undertaken by a local authority with the approval of the Minister for the Environment and Local Government which has as its object or among its objects the treatment of trade effluents;

“local authority” means a local authority for the purposes of the Local Government Act 2001 (as amended by the Local Government Reform Act 2014);

“trade effluents” means liquid or other matter discharged into public sewers from premises occupied for the purposes of a trade.

(2)Where a person, for the purposes of a trade carried on or to be carried on by the person, contributes a capital sum to capital expenditure incurred by a local authority on or after 15 February 2001 on the provision of an asset to be used for the purposes of –

(a)an approved scheme, in so far as the scheme relates to the treatment of trade effluents, or

(b)the supply of water under an agreement in writing between the person and the local authority.

then, such allowances, if any, shall be made to the person under section 272 or 284 as would have been made to the person if the capital sum contributed in the chargeable period or its basis period had been expenditure on the provision for the purposes of that trade of a similar asset and that asset had continued at all material times to be in use for the purposes of the trade.

(2A)Where, by virtue of subsection (2), a person is entitled to an allowance under section 284 then, for the purposes of determining the amount of wear and tear allowances to be made for any chargeable period or its basis period for the purposes of this section, section 284 shall apply –

(a)as if the reference in paragraph (aa) of subsection (2) of that section to ’20 per cent of the actual cost of the machinery or plant, including in that actual cost any expenditure in the nature of capital expenditure on the machinery or plant by means of renewal, improvement or reinstatement’ were a reference to ’20 per cent of the capital sum contributed in the chargeable period or its basis period’, and

(b)as if the reference in paragraph (ad) of subsection (2) of that section to ‘12.5 per cent of the actual cost of the machinery or plant, including in that actual cost any expenditure in the nature of capital expenditure on the machinery or plant by means of renewal, improvement or reinstatement’ were a reference to ‘12.5 per cent of the capital sum contributed in the chargeable period or its basis period’.

(3)The following provisions shall apply in relation to a transfer of a trade or part of a trade for the purposes of which a contribution referred to in subsection (2) was made:

(a)where the transfer is of the whole trade, allowances which, if the transfer had not taken place, would have been made to the transferor under section 272 or 284 for chargeable periods ending after the date of the transfer shall be made to the transferee and shall not be made to the transferor;

(b)where the transfer is of part only of the trade, paragraph (a) shall apply in relation to so much of the allowance as is properly referable to the part of the trade transferred.

311.

Apportionment of consideration and exchanges and surrenders of leasehold interests.

(1)

(a)Any reference in this Part to the sale of any property includes a reference to the sale of that property together with any other property and, where property is sold together with other property, so much of the net proceeds of the sale of the whole property as on a just apportionment is properly attributable to the first-mentioned property shall for the purposes of this Part be deemed to be the net proceeds of the sale of the first-mentioned property, and references to expenditure incurred on the provision or the purchase of property shall be construed accordingly.

(b)For the purposes of this subsection, all the property which is sold in pursuance of one bargain shall be deemed to be sold together, notwithstanding that separate prices are, or purport to be, agreed for separate items of that property or that there are, or purport to be, separate sales of separate items of that property.

(2)Subsection (1) shall, with the necessary modifications, apply in relation to other sale, insurance, salvage or compensation moneys as it applies in relation to the net proceeds of sales.

(3)This Part shall apply as if any reference in this Part to the sale of any property included a reference to the exchange of any property and, in the case of a leasehold interest, also included a reference to the surrender of that interest for valuable consideration, and any provisions of this Part referring to the sales shall apply accordingly with the necessary modifications and in particular with the modifications that references to the net proceeds of sale and to the price shall be taken to include references to the consideration for the exchange or surrender, and references to capital sums included in the price shall be taken to include references to so much of the consideration as would have been a capital sum if the consideration had taken the form of a money payment.

(3A)For the purposes of subsection (3), any transfer of property by a person to another person, pursuant to a Debt Settlement Arrangement or a Personal Insolvency Arrangement entered into under the Personal Insolvency Act 2012, whereby such property is held in trust for the creditors of the person making the transfer shall not, where that property is an industrial building or structure (within the meaning of section 268), be treated as an exchange of property.

(4)This section shall, with the necessary modifications, apply in relation to Chapter 1 of Part 24 and sections 764 and 765 as if that Chapter and those sections were contained in this Part.

312.

Special provisions as to certain sales.

(1)In this section, “control”, in relation to a body corporate, means the power of a person to secure –

(a)by means of the holding of shares or the possession of voting power in or in relation to that or any other body corporate, or

(b)by virtue of any powers conferred by the articles of association or other document regulating that or any other body corporate,

that the affairs of the first-mentioned body corporate are conducted in accordance with the wishes of that person and, in relation to a partnership, means the right to a share of more than 50 per cent of the assets, or of more than 50 per cent of the income, of the partnership.

(2)

(a)This section shall apply in relation to sales of any property where either –

(i)the buyer is a body of persons over whom the seller has control, or the seller is a body of persons over whom the buyer has control, or both the seller and the buyer are bodies of persons and some other person has control over both of them, or

(ii)it appears with respect to the sale, or with respect to transactions of which the sale is one, that the sole or main benefit which apart from this section might have been expected to accrue to the parties or any of them was the obtaining of an allowance under this Part or under Chapter 1 of Part 24 or section 764 or 765.

(b)References in this subsection to a body of persons include references to a partnership.

(3)Where the property is sold at a price other than the price it would have fetched if sold in the open market, then, subject to subsections (4) and (5), the like consequences shall ensue for the purposes of the enactments mentioned in subsection (2), in their application to the tax of all persons concerned, as would have ensued if the property had been sold for the price it would have fetched if sold in the open market.

(4)

(a)Subject to paragraph (b), where the sale is a sale of machinery or plant –

(i)no initial allowance shall be made to the buyer, and

(ii)subject to subsection (5), if the price which the property would have fetched if sold in the open market is greater than the amount which, for the purpose of determining whether any, and if so, what, balancing charge should be made on the seller in respect of the property under Chapter 2 of this Part, would be taken to be the amount of the capital expenditure incurred by the seller on the provision of the property, subsection (3) shall apply as if for each of the references to the price which the property would have fetched if sold in the open market there were substituted a reference to that amount.

(b)This subsection shall not apply in relation to a sale of machinery or plant which was never used if the business or part of the business of the seller was the manufacture or supply of machinery or plant of that class and the sale was effected in the ordinary course of the seller’s business.

(5)

(a)Subject to subsection (6), where the sale is one to which subsection (2)(a)(i) applies and subsection (2)(a)(ii) does not apply, and the parties to the sale by notice in writing to the inspector so elect, the following provisions shall apply:

(i)subsection (3) shall apply as if for each of the references to the price which the property would have fetched if sold in the open market there were substituted a reference to that price or to the sum mentioned in paragraph (b), whichever is the lower;

(ii)subsection (4)(a)(ii) shall not apply;

(iii)notwithstanding anything in the preceding provisions of this section, such balancing charge, if any, shall be made on the buyer on any event occurring after the date of the sale as would have been made on the seller if the seller had continued to own the property and had done all such things and been allowed all such allowances or deductions in connection with the property as were done by or allowed to the buyer.

(b)The sum referred to in paragraph (a)(i) is –

(i)in the case of an industrial building or structure, the residue of the expenditure on the construction of that building or structure immediately before the sale, computed in accordance with section 277, and

(ii)in the case of machinery or plant, the amount of the expenditure on the provision of the machinery or plant still unallowed immediately before the sale, computed in accordance with section 292.

(6)

(a)An election under subsection (5)(a) may not be made if –

(i)any of the parties to the sale is not resident in the State at the time of the sale, and

(ii)the circumstances are not at that time such that an allowance or charge under this Part is to be or might be made to or on that party in consequence of the sale.

(b)Except where referred to in paragraph (a), this section shall apply in relation to a sale notwithstanding that it is not fully applicable by reason of the non-residence of a party to the sale or otherwise.

313.

Effect, in certain cases, of succession to trade, etc.

(1)Where a person succeeds to any trade or profession which until that time was carried on by another person and by virtue of section 69 the trade or profession is to be treated as discontinued, any property which, immediately before the succession takes place, was in use for the purposes of the discontinued trade or profession and without being sold is, immediately after the succession takes place, in use for the purposes of the new trade or profession shall for the purposes of this Part be treated as if it had been sold to the successor when the succession takes place and as if the net proceeds of that sale had been the price which that property would have fetched if sold in the open market.

(2)Where, after the setting up and before the permanent discontinuance of a trade or profession which at any time is carried on in partnership anything is done for the purposes of that trade or profession, any allowance or charge which, if the trade or profession had at all times been carried on by one and the same person, would have been made to or on that person under this Part shall, subject to section 1010, be made to or on the person or persons from time to time carrying on that trade or profession (in this subsection referred to as “the relevant person or persons”), and the amount of any such allowance or charge shall be computed as if the relevant person or persons had at all times been carrying on the trade or profession and as if everything done to or by the predecessors of the relevant person or persons in the carrying on of that trade or profession had been done to or by the relevant person or persons.

(3)In relation to machinery or plant, this section shall apply subject to Chapter 2 of this Part in so far as that Chapter relates to balancing allowances and balancing charges.

314.

Procedure on apportionment.

(1)

(a)Where, in relation to an apportionment to be made under this Part –

(i)it appears, at the time of the apportionment, that it is material as respects the liability to tax (for whatever period) of 2 or more persons, and

(ii)it is not possible for a person making the apportionment and the relevant inspector to agree on the apportionment,

the inspector shall determine the apportionment and give notice in writing of the determination to each person affected by that apportionment.

(b)A person aggrieved by a determination made under paragraph (a) in respect of that person may appeal the determination to the Appeal Commissioners, in accordance with section 949I, within the period of 30 days after the date of the notice of that determination, for their determination of a just and reasonable apportionment.

(2)This section shall apply in relation to any determination for the purposes of this Part of the price which property would have fetched if sold in the open market as it applies in relation to apportionments.

315.

Property used for purposes of “exempted trading operations”.

(1)Where an event occurs which gives rise, or would but for this section give rise, to a balancing allowance or balancing charge in respect of any property to or on a company in relation to which a certificate under section 374(2) of the Income Tax Act, 1967, or section 70(2) of the Corporation Tax Act, 1976, has been given, then, whether the certificate is still in force or not, this section shall apply.

(2)Where the property has been used by the company exclusively for the purposes of its exempted trading operations within the meaning of Chapter I of Part XXV of the Income Tax Act, 1967, or Part V of the Corporation Tax Act, 1976, no balancing allowance or balancing charge shall be made.

(3)Where the property has been used partly for the purposes of the company’s exempted trading operations and partly for the purposes of its other trading operations, regard shall be had to all the relevant circumstances of the case and there shall be made to or on the company an allowance of such an amount, or, as the case may be, a charge on such an amount, as may be just and reasonable.

316.

Interpretation of certain references to expenditure and time when expenditure is incurred.

(1)References in this Part to capital expenditure and capital sums –

(a)in relation to the person incurring the expenditure or paying the sums, do not include any expenditure or sum allowed to be deducted in computing for the purposes of tax the profits or gains of a trade, profession, office or employment carried on or held by that person, and

(b)in relation to the person receiving the amounts expended or the sums in question, do not include references to any amounts or sums which are to be taken into account as receipts in computing the profits or gains of any trade, profession, office or employment carried on or held by that person,

and do not include, in relation to any person referred to in paragraphs (a) and (b), any expenditure or sum in the case of which a deduction of tax is to be or may be made under section 237 or 238.

(2)Any reference in this Part to the date on which expenditure is incurred shall be construed as a reference to the date when the sums in question become payable; but, for the purposes of section 284, this subsection shall apply only in respect of machinery and plant provided for use for the purposes of a trade on or after the 6th day of April 1996.

(2A)For the purposes only of determining, in relation to a claim for an allowance under Chapter 1 of this Part, whether and to what extent capital expenditure incurred on the construction (within the meaning of section 270) of:

(a)a building or structure in use for the purposes of the trade of hotel keeping, or

(b)a building or structure deemed to be a building or structure in use for such purposes by virtue of section 268(3), is incurred or not incurred on or before 31 July 2008, only such an amount of that capital expenditure as is properly attributable to work on the construction or refurbishment of the building or structure actually carried out on or before 31 July 2008 shall (notwithstanding subsection (2) and any other provision of the Tax Acts as to the time when any capital expenditure is or is to be treated as incurred) be treated as having been incurred on or before that date.

(2B)For the purposes only of determining, in relation to a claim for an allowance under this Part, whether and to what extent capital expenditure incurred on the construction or refurbishment of a building or structure referred to in paragraph (a), (b), (c), (d), (e), (f), (g), (h) or (i) of section 270(4) (as inserted by the Finance Act 2006) is incurred or not incurred in –

(a)

(i)where section 270(4)(i) applies, the period from 1 January 2006 to 24 March 2007, and

(ii)in any other case, the period from 1 January 2006 to 31 December 2006,

(b)

(i)where section 270(4)(i) applies, the period from 25 March 2007 to 31 December 2007, and

(ii)in any other case, the period from 1 January 2007 to 31 December 2007,

(c)the period from 1 January 2008 to 31 July 2008, or

(d)where subsection (8) of section 270 applies in relation to a qualifying residential unit as is referred to in subsection (4)(i) of that section, the period from 1 May 2007 to 30 April 2010,

only such an amount of that capital expenditure as is properly attributable to work on the construction or refurbishment of the building or structure actually carried out in such a period shall (notwithstanding subsection (2) and any other provision of the Tax Acts as to the time when any capital expenditure is or is to be treated as incurred) be treated as having been incurred in that period.

(2C)For the purposes only of determining, in relation to a claim for an allowance under this Part, whether and to what extent capital expenditure incurred on the construction or refurbishment of a building or structure referred to in paragraph (g), (i), (j), (l) or (n) of section 268(1) is incurred or not incurred in any of the periods referred to in paragraph (d), (f), (g), (i) or (k) of section 268(9), only such an amount of that capital expenditure as is properly attributable to work on the construction or refurbishment of the building or structure actually carried out in any such period shall (notwithstanding subsection (2) and any other provision of the Tax Acts as to the time when any capital expenditure is or is to be treated as incurred) be treated as having been incurred within that period.

(3)For the purposes of sections 271 and 283, any expenditure incurred for the purposes of a trade by a person about to carry on the trade shall be treated as if it had been incurred by that person on the first day on which that person carries on the trade.

317.

Treatment of grants.

(1)In this section –

“food processing trade” means a trade which consists of or includes the manufacture of processed food;

“processed food” means goods manufactured in the State in the course of a trade by a company, being goods which –

(a)are intended for human consumption as a food, and

(b)have been manufactured by a process involving the use of machinery or plant whereby the goods produced by the application of that process differ substantially in form and value from the materials to which the process has been applied and whereby, without prejudice to the generality of the foregoing, the process does not consist primarily of –

(i)the acceleration, retardation, alteration or application of a natural process, or

(ii)the application of methods of preservation, pasteurisation or any similar treatment;

“qualifying machinery or plant” means machinery or plant used solely in the course of a process of manufacture whereby processed food is produced.

(2)Subject to subsection (3), expenditure shall not be regarded for any of the purposes of this Part, other than sections 283 and 284, as having been incurred by a person in so far as the expenditure has been or is to be met directly or indirectly –

(a)in relation to expenditure incurred before the 6th day of May, 1993, by the State, by any board established by statute or by any public or local authority, and

(b)in relation to expenditure incurred on or after the 6th day of May, 1993, by the State or by any person other than the first-mentioned person.

(3)

(a)Subject to paragraph (b) and subsection (4), where an allowance is to be made for the purposes of income tax or corporation tax, as the case may be, under section 283 or 284 and the capital expenditure incurred on the provision of the machinery or plant in respect of which the allowance is to be made was incurred on or after the 29th day of January, 1986, the following provisions shall apply:

(i)expenditure shall not be regarded as having been incurred by a person in so far as the expenditure has been or is to be met directly or indirectly –

(I)in relation to expenditure incurred before the 6th day of May, 1993, by the State, by any board established by statute or by any public or local authority, and

(II)in relation to expenditure incurred on or after the 6th day of May, 1993, by the State or by any person other than the first-mentioned person, and

(ii)the actual cost of any machinery or plant to any person shall for the purposes of section 284 be taken to be the amount of capital expenditure incurred on the provision of such machinery or plant less any expenditure referred to in subparagraph (i).

(b)Paragraph (a) shall not apply in relation to any capital expenditure which is met or is to be met in the manner mentioned in paragraph (a)(i) –

(i)under the terms of an agreement finally approved on or before the 29th day of January, 1986, by a Department of State, any board established by statute or any public or local authority, or

(ii)under the terms of an agreement which –

(I)was the subject of negotiations which were in progress on the 29th day of January, 1986, with a Department of State, any board established by statute or any public or local authority, and

(II)was finally approved by such Department, board or authority not later than the 31st day of December, 1986.

(4)

(a)Subsection (3) shall not apply where an allowance is to be made under section 283 or 284 in taxing a food processing trade carried on by a company and the capital expenditure in respect of which the allowance is to be made was incurred by that company and was so incurred in respect of qualifying machinery or plant.

(b)The reference in paragraph (a) to expenditure incurred by a company shall not include any expenditure which it is deemed to have incurred in accordance with section 299.

318.

Meaning of “sale, insurance, salvage or compensation moneys”.

In this Part, except where the context otherwise requires, “sale, insurance, salvage or compensation moneys”, in relation to an event which gives rise or might give rise to a balancing allowance or a balancing charge to or on any person, means –
(a)where the event is a sale of any property, including the sale of a right to use or otherwise deal in machinery or plant consisting of computer software, the net proceeds to that person of the sale,
(aa)as respects machinery or plant consisting of computer software or the right to use or otherwise deal with computer software, where the event is the grant of a right to use or otherwise deal with the whole or part of that machinery or plant, the consideration in money or money’s worth received by that person for the grant of the right,
(b)where the event is the demolition or destruction of any property, the net amount received by that person for the remains of the property, together with any insurance moneys received by that person in respect of the demolition or destruction and any other compensation of any description received by that person in respect of the demolition or destruction, in so far as that compensation consists of capital sums,
(c)as respects machinery or plant, where the event is the permanent loss of the machinery or plant otherwise than in consequence of its demolition or destruction, any insurance moneys received by that person in respect of any loss and any other compensation of any description received by that person in respect of that loss, in so far as that compensation consists of capital sums,
(d)where the event is that a building or structure ceases altogether to be used, any compensation of any description received by that person in respect of that event, in so far as that compensation consists of capital sums, and
(e)where the event is a cessation referred to in section 274(2A)(b), the aggregate of –
(i)the residue of expenditure (within the meaning of section 277) incurred on the construction or refurbishment of the building or structure immediately before that event, and
(ii)the allowances made under Chapter 1 of this Part in respect of the capital expenditure incurred on the construction or refurbishment of the building or structure.

319.

Adjustment of allowances by reference to value-added tax.

(1)In computing any deduction, allowance or relief for the purposes of –

(a)this Part,

(b)sections 658 and 659,

(c)Chapter 1 of Part 24, or

(d)sections 764, 765 and 769,

the cost to a person of any machinery or plant, or the amount of any expenditure incurred by a person, shall not take account of any amount included in such cost or expenditure for value-added tax in respect of which the person may claim –

(i)a deduction under Chapter 1 of Part 8 of the Value-Added Tax Consolidation Act 2010, or

(ii)a refund of value-added tax under an order under section 103 of that Act.

(2)In calculating for the purposes of this Part the amount of sale, insurance, salvage or compensation moneys to be taken into account in computing a balancing allowance or balancing charge to be made to or on a person, no account shall be taken of the amount of value-added tax (if any) chargeable to the person in respect of those moneys.

320.

Other interpretation (Part 9).

(1)In this Part, except where the context otherwise requires –

“income” includes any amount on which a charge to tax is authorised to be made under this Part;

“lease” includes an agreement for a lease where the term to be covered by the lease has begun, and any tenancy, but does not include a mortgage, and “lessee”, “lessor” and “leasehold interest” shall be construed accordingly.

(2)Any reference in this Part to any building, structure, machinery or plant shall be construed as including a reference to a part of any building, structure, machinery or plant except, in relation to a building or structure, where the reference is comprised in a reference to the whole of a building or structure.

(3)This Part shall apply in relation to a share in machinery or plant as it applies in relation to a part of machinery or plant and, for the purposes of this Part, a share in machinery or plant shall be deemed to be used for the purposes of a trade only so long as the machinery or plant is used for the purposes of the trade.

(4)Any reference in this Part to the time of any sale shall be construed as a reference to the time of completion or the time when possession is given, whichever is the earlier.

(5)Any reference in this Part to the setting up or permanent discontinuance of a trade includes, except where the contrary is expressly provided, a reference to the occurring of any event which under any provision of the Income Tax Acts is to be treated as equivalent to the setting up or permanent discontinuance of a trade.

(6)Any reference in this Part to an allowance made includes a reference to an allowance which would be made but for an insufficiency of profits or gains, or other income, against which to make the allowance.

321.

Provisions of general application in relation to the making of allowances and charges.

(1)Subsections (2) to (7) shall apply for the interpretation of –

(a)this Part,

(b)section 374,

(c)sections 658 to 660,

(d)Chapter 1 of Part 24,

(e)sections 764 and 765,

(f)section 769, and

(g)any other provision of the Tax Acts relating to the making of allowances or charges under or in accordance with the provisions referred to in paragraphs (a) to (f).

(2)”Chargeable period” means an accounting period of a company or a year of assessment, and –
(a)a reference to a chargeable period or its basis period is a reference to the chargeable period if it is an accounting period and to the basis period for it if it is a year of assessment
(b)a reference to a chargeable period related to expenditure, or a sale or other event, is a reference to the chargeable period in which, or to that in the basis period for which, the expenditure is incurred or the sale or other event takes place, and means the latter only if the chargeable period is a year of assessment.

(2A)Subject to section 316, references to expenditure in relation to an asset –

(a)include expenditure on labour costs including emoluments paid to employees of the company, and

(b)do not include interest payable,

which for accounting purposes is taken into account by the company in determining the value of the asset.

(3)References to tax for a chargeable period shall be construed in relation to corporation tax as referring to the tax for any financial year which is chargeable in respect of that period.

(4)A reference to allowances or charges being made in taxing a trade is a reference to their being made in computing the trading income for corporation tax or in charging the profits or gains of the trade to income tax.

(5)

(a)Where it is provided that writing-down allowances shall be made in respect of any expenditure during a writing-down period of a specified length, there shall for any chargeable period wholly or partly comprised in the writing-down period be made an allowance equal to the appropriate fraction of the expenditure and, subject to any provision to the contrary, the appropriate fraction shall be such fraction of the writing-down period as falls within the chargeable period.

(b)Notwithstanding paragraph (a), the aggregate amount of the writing-down allowances made, whether to the same or to different persons, together with the amount of any initial allowance (but not of any investment allowance), shall not exceed the amount of the expenditure.

(6)Where the reference is partly to years of assessment before the year 1976-77 –

(a)a writing-down allowance includes an annual allowance, and

(b)an allowance on account of wear and tear of machinery or plant includes a deduction on account of wear and tear of machinery or plant, in the sense which in the context those expressions had immediately before the commencement of the Corporation Tax Act, 1976.

(7)Where any enactment referred to in subsection (1) provides for an amount of a writing-down allowance or an allowance on account of wear and tear of machinery or plant to be determined by a fraction or percentage, specified numerically, of any expenditure or other sum, or by reference to a percentage determined or deemed to be determined for a chargeable period of one year, then for a chargeable period of less than a year the fraction or percentage shall be proportionately reduced.

(8)Except where the context otherwise requires, in any provision of the Income Tax Acts not referred to in subsection (1) any reference to an allowance or charge for a year of assessment under a provision referred to in that subsection shall include the like allowance or charge for an accounting period of a company, and any reference to the making of an allowance or charge in charging profits or gains of a trade shall be construed as a reference to making the allowance in taxing a trade.

(9)Any provision of the Income Tax Acts whereby, for the purposes of –

(a)this Part,

(b)section 670,

(c)section 764 or 765,

(d)section 769, or

(e)any provision of the Income Tax Acts relating to the making of allowances or charges under or in accordance with the provisions referred to in paragraphs (a) to (d),

a trade is or is not to be treated as permanently discontinued or a new trade as set up and commenced shall apply in the like manner in the case of a trade so treated by virtue of the Corporation Tax Acts.

(10)Where but for the deletion of sections 445 and 446, an allowance or charge would be made to or on a company for any chargeable period under this Part then, notwithstanding that those sections have been deleted, that allowance or charge shall be made to or on the company and, accordingly this Part shall apply with any modifications necessary to give effect to this subsection.

Schedules 5-8 former special tax allowance areas

Schedule 5 Description of Custom House Docks Area

Section 322.

Interpretation

1.In this Schedule –

“thoroughfare” includes any road, street, lane, place, quay, terrace, row, square, hill, parade, diamond, court, bridge, channel and river;

a reference to a line drawn along any thoroughfare is a reference to a line drawn along the centre of that thoroughfare;

a reference to a projection of any thoroughfare is a reference to a projection of a line drawn along the centre of that thoroughfare;

a reference to the point where any thoroughfare or projection of any thoroughfare intersects or joins any other thoroughfare or projection of a thoroughfare is a reference to the point where a line drawn along the centre of one thoroughfare or, in the case of a projection of a thoroughfare, along the projection, would be intersected or joined by a line drawn along the centre of the other thoroughfare or, in the case of another projection of a thoroughfare, along the other projection;

a reference to a point where any thoroughfare or projection of a thoroughfare intersects or joins a boundary is a reference to the point where a line drawn along the centre of such thoroughfare or, in the case of a projection of a thoroughfare, along the projection would intersect or join such boundary.

Description of Custom House Docks Area

2.That part of the county borough of Dublin bounded by a line commencing at the point (in this description referred to as “the first-mentioned point”) where a line drawn along the westerly projection of the northern boundary of Custom House Quay would be intersected by a line drawn along Memorial Road, then continuing in a northerly direction along Memorial Road and Amiens Street to the point where it joins Sheriff Street Lower, then continuing, initially in an easterly direction, along Sheriff Street Lower and Commons Street to the point where it intersects the easterly projection of the northern boundary of Custom House Quay, and then continuing in a westerly direction along that projection and that boundary and the westerly projection of that boundary to the first-mentioned point.

Schedule 6 Description of Temple Bar Area
Section 330.

Interpretation

1.In this Schedule –

“thoroughfare” includes any bridge, green, hill, river and street;

a reference to a line drawn along any thoroughfare is a reference to a line drawn along the centre of that thoroughfare;

a reference to a projection of any thoroughfare is a reference to a projection of a line drawn along the centre of that thoroughfare;

a reference to the point where any thoroughfare or projection of any thoroughfare intersects or joins any other thoroughfare is a reference to the point where a line drawn along the centre of one thoroughfare or, in the case of a projection of a thoroughfare, along the projection, would be intersected or joined by a line drawn along the centre of the other thoroughfare.

Description of Temple Bar Area

2.That part of the county borough of Dublin bounded by a line commencing at the point (in this description referred to as “the first-mentioned point”) where the River Liffey is intersected by O’Connell Bridge, then continuing, initially in a southerly direction along O’Connell Bridge, Westmoreland Street, College Green, Dame Street, Cork Hill and Lord Edward Street to the point where it joins Fishamble Street, then continuing in a northerly direction along Fishamble Street and the northerly projection of that street to the point where it intersects the River Liffey, then continuing in an easterly direction along the River Liffey to the first-mentioned point.

Schedule 7 Description of Certain Enterprise Areas
Schedule 7, Part 1 Interpretation
Section 339.

In this Schedule

“thoroughfare” includes any canal, lane, motorway, railway line and road;

a reference to a line drawn along any thoroughfare is a reference to a line drawn along the centre of that thoroughfare;

a reference to the point where any thoroughfare intersects, joins or traverses any other thoroughfare is a reference to the point where a line drawn along the centre of one thoroughfare would be intersected, joined or traversed by a line drawn along the centre of the other thoroughfare;

a reference to a point where any thoroughfare is intersected by the projection of a boundary is a reference to the point where a line drawn along the centre of such thoroughfare would be intersected by the projection of such boundary.

Schedule 7, Part 2 Description of Cherry Orchard/Gallanstown Enterprise Area
Section 339.

That part of the county borough of Dublin and the administrative county of South Dublin bounded by a line commencing at the point (in this description referred to as “the first-mentioned point”) where the Grand Canal is traversed by the M50 motorway, then continuing in an easterly direction along the Grand Canal to the point where it is traversed by the unnamed road to the east of the Dublin Corporation Waterworks installation, then continuing in a north-westerly direction along that unnamed road for a distance of 250 metres, then continuing in a straight undefined line in a north-easterly direction to a point on the South Western Railway Line which is 950 metres east of the point where that railway line is traversed by the M50 motorway, then continuing in a westerly direction along that railway line to the point where it is traversed by the M50 motorway, then continuing in a south-easterly direction along that motorway to the first-mentioned point.

Schedule 7, Part 3 Description of Finglas Enterprise Area
Section 339.

That part of the county borough of Dublin and the administrative county of Fingal bounded by a line commencing at the point (in this description referred to as “the first-mentioned point”) where Jamestown Road is intersected by the western projection of the northern boundary of Poppintree Industrial Estate, then continuing in a northerly direction along Jamestown Road to the point where it joins St. Margaret’s Road, then continuing in an easterly direction along St. Margaret’s Road for a distance of 110 metres, then continuing in a straight undefined line due north to the point where it intersects the M50 motorway, then continuing in an easterly direction along the M50 motorway to the point where it is traversed by the unnamed road immediately to the west of the playing fields on the northern side of St. Margaret’s Road, then continuing in a southerly direction along that unnamed road to the point where it joins St. Margaret’s Road, then continuing in an easterly direction along St. Margaret’s Road for a distance of 115 metres, then continuing in a straight undefined line in a southerly direction to the point where Balbutcher Lane is intersected by the eastern projection of the northern boundary of Poppintree Industrial Estate, then continuing in a westerly direction along the last-mentioned projection and boundary and the western projection of the last-mentioned boundary to the first-mentioned point.

Schedule 7, Part 4 Description of Rosslare Harbour Enterprise Area
Section 339.

Ballygerry Area

That part of the administrative county of Wexford bounded by a line commencing at the point (in this description referred to as “the first-mentioned point”), where the N25 road intersects the Ballygerry Road at Kilrane then continuing initially in a northerly direction along Ballygerry Road to the point where it next joins the N25 road, then continuing initially in a southerly direction along the N25 road to the first-mentioned point.

Harbour Area

That part of the town of Rosslare Harbour in the administrative county of Wexford bounded by a line commencing at the point (in this description referred to as “the first-mentioned point”) where the high-water mark joins the south-eastern end of the pier wall to the north-west of the premises known locally as the Old Customs Shed, then continuing in a north-westerly direction along that pier to the point where it intersects the eastern end of the new revetment, then continuing in a south-westerly direction along that revetment to the point which is a distance of 150 metres from the western end of that revetment, then continuing in a straight undefined line due south to the point where it intersects the railway track, then continuing in a north-easterly direction along the railway track to the point where it is intersected by the southern projection of the western boundary of the Old Customs Shed property, then continuing in a northerly direction along the last-mentioned projection and boundary to the point where it joins the north-western boundary of the Old Customs Shed property, then continuing in a north-easterly direction in a straight undefined line to the first-mentioned point.

Schedule 8 Description of Qualifying Resort Areas
Schedule 8, Part 1 Description of qualifying resort areas of Clare
Section 351.

Kilkee

1.That part of the District Electoral Division of Kilkee comprised in the Townlands of Kilkee Upper, Kilkee Lower and Dough.

2.That part of the District Electoral Division of Kilfearagh comprised in that part of the Townland of Ballyonan or Doonaghboy bounded by a line commencing at the point (in this description referred to as “the first-mentioned point”) where the boundaries of the Townlands of Ballyonan or Doonaghboy, Kilkee Lower and Dough converge, then continuing in a south-westerly direction along the boundary of the Townlands of Kilkee Lower and Ballyonan or Doonaghboy for a distance of 568 yards to a point where it intersects a field measuring 1.829 acres, then continuing along the north-eastern boundary of that field to a point where it intersects Local Road (County Road 395), then continuing along the centre of that road in a south-westerly direction for a distance of 20 yards to a point where it intersects the northern projection of the north-eastern boundary of a field measuring 3.517 acres, then continuing along the north-eastern boundary of that field and of the adjoining field in a south-easterly direction, then continuing in that direction to the centre of the Kilkee/Loop Head Regional Road (R487), then continuing along the centre of that road in a southerly direction for 160 yards to a point where it intersects the westerly projection of the southern boundary of a field measuring 1.282 acres, then continuing in an easterly direction along the southern boundary of that field and adjoining fields to a point where it intersects with the eastern boundary of the Townland of Ballyonan or Doonaghboy, and then continuing, initially in a northerly direction, along that boundary to the first-mentioned point.

3.That part of the District Electoral Division of Kilfearagh comprised in that part of the Townland of Corbally bounded by a line commencing at the point (in this description referred to as “the first-mentioned point”) being the most westerly point of the boundary between the Townlands of Corbally and Dough, then continuing along that boundary in an easterly direction for approximately 510 yards to a point where it intersects the south-eastern corner of a field measuring 2.020 acres, then continuing in a northerly direction along the eastern boundary of that field and of adjoining fields for a distance of 394 yards, then continuing in a generally westerly direction along the northern boundary of a field measuring 3.305 acres, then continuing in that direction to the cliff face of George’s Head, and then continuing, initially in a southerly direction, along the high water mark to the first-mentioned point.

Lahinch

1.That part of the District Electoral Division of Ennistimon comprised in the Townlands of Lehinch and Dough.

2.That part of the District Electoral Division of Liscannor comprised in the Townland of Ballyellery.

3.That part of the District Electoral Division of Moy comprised in the Townland of Crag.

Schedule 8, Part 2 Description of qualifying resort areas of Cork
Section 351.

Clonakilty

1.The administrative area of the urban district of Clonakilty.

2.That part of the District Electoral Division of Ardfield comprised in the Townlands of Dunmore, Muckross, Lonagh, Drombeg and Pallas.

3.That part of the District Electoral Division of Clonakilty Rural comprised in the Townlands of Clogheen, Inchydoney Island, Gallanes, Tawnies Lower (Rural), Tawnies Upper (Rural), Desert (Rural), Youghalls (Rural) and Miles (Rural).

Youghal

1.The administrative area of the urban district of Youghal.

2.That part of the District Electoral Division of Youghal Rural comprised in the Townlands of Summerfield, Ballyvergan East, Ballyclamasy, Knocknacally, Pipersbog, Glanaradotia, Park Mountain, Muckridge Demense, Foxhole and Youghal Mudlands.

3.That part of the District Electoral Division of Clonpriest comprised in the Townlands of Clonard East and Redbarn.

Schedule 8, Part 3 Description of qualifying resort areas of Donegal
Section 351.

Bundoran

1.The administrative area of the urban district of Bundoran.

2.That part of the District Electoral Division of Bundoran Rural comprised in that part of the Townland of Magheracar which is situated west of the most westerly boundary of the administrative area of the urban district of Bundoran.

3.That part of the District Electoral Division of Bundoran Rural comprised in that part of the Townland of Finner bounded by a line commencing at the point (in this description referred to as “the first-mentioned point”) where the eastern boundary of the administrative area of the urban district of Bundoran, on the southern side of the National Primary Road (N15), intersects with the centre of that National Primary Road, then continuing in an easterly direction along the centre of that road for a distance of 500 feet, then continuing in a north-westerly direction along the rear boundary to the east of Finner Avenue Housing Estate until the south-eastern corner of Tullan Strand is reached, then continuing in a westerly direction to the point where it joins the most north-easterly point of the boundary of the administrative area of the urban district of Bundoran, then continuing in a southerly direction along the eastern boundary of the urban district to the point where it intersects the centre of the National Primary Road (N15), and then continuing in an easterly direction along the centre of that road to the first-mentioned point.

Schedule 8, Part 4 Description of qualifying resort areas of Galway
Section 351.

Salthill

1.That part of the County Borough of Galway bounded by a line commencing at the point (in this description referred to as “the first-mentioned point”) where Threadneedle Road meets Salthill Road Upper, then continuing in a northerly direction along the centre of Threadneedle Road to its junction with the road from Seapoint Housing Estate, then continuing in an easterly direction along the southern edge of that estate road and in an easterly projection therefrom to its intersection with a road named Rockbarton West, then continuing in an easterly direction along the centre of Revagh Road to its junction with Rockbarton Road, then continuing in a southerly direction along the centre of Rockbarton Road to its junction with Salthill Road Upper and then continuing in a westerly direction along Salthill Road Upper to the first-mentioned point.

2.That part of the County Borough of Galway bounded by a line commencing at the point (in this description referred to as “the first-mentioned point”) where the Seapoint Promenade Road meets Salthill Road Upper, then continuing in a north-easterly direction along the centre of Salthill Road Upper to its junction with Salthill Road Lower, then continuing in an easterly direction along the centre of Grattan Road to its junction with Seapoint Promenade Road and then continuing in a south-westerly direction along the centre of Seapoint Promenade Road to the first-mentioned point.

3.That part of the County Borough of Galway bounded by a line commencing at the point (in this description referred to as “the first-mentioned point”) where Dalysfort Road meets Salthill Road Upper, then continuing in an easterly direction along the centre of Salthill Road Upper to a point where it meets Monksfield, then continuing in a north-westerly direction along the centre of Monksfield to the rear of Number 212 Salthill Road Upper, then continuing in a westerly direction along the Commercial Zoning Boundary as set out in the Galway County Borough Development Plan, 1991, to a point at the rear of Western House where it adjoins Dalysfort Road and then continuing in a southerly direction to the first-mentioned point.

4.That part of the County Borough of Galway bounded by a line commencing at the point (in this description referred to as “the first-mentioned point”) where Monksfield meets Salthill Road Upper, then continuing in a north-easterly direction along the centre of Salthill Road Upper to its junction with Salthill Road Lower, then continuing in a northerly direction along the centre of Salthill Road Lower to its junction with Devon Park Road, then continuing in a north-westerly direction along the centre of Devon Park Road to the rear of property known as Number 108 Lower Salthill Road, then continuing in a southerly direction along Devon Park along the rear boundaries of Numbers 108, 110, 112, 114, 116, 118, 120, 122, 124, 126, 128, 130, 132, 134, 136, 138, 140, 142, 144, 146 and 148 Lower Salthill Road to where it meets Lenaboy Park, then continuing along the Commercial Zoning Boundary, as set out in the Galway County Borough Development Plan, 1991, to the rear of Number 160 Upper Salthill Road, then continuing along the rear boundaries of Numbers 160, 162, 164, 166, 168 and 170 Upper Salthill Road, then continuing in a southerly direction to the side boundary of Number 178 Upper Salthill Road, then continuing in a westerly direction along the boundary of Number 178 Upper Salthill Road to its boundary with Lenaboy Gardens, then continuing in a southerly direction along the centre of Lenaboy Gardens to the north-western corner of the Sacre Coeur Hotel, then continuing in a southerly direction along the Commercial Zoning Boundary, as set out in the Galway Borough Development Plan, 1991, to its junction with Monksfield and then continuing in a south-easterly direction to the first-mentioned point.

5.That part of the County Borough of Galway bounded by a line commencing at the point (in this description referred to as “the first-mentioned point”) where Lower Salthill Road meets Grattan Road, then continuing in an easterly direction along the centre of Grattan Road to its junction with Salthill Promenade Road, then continuing in a northerly direction along the boundary of the existing private car-park to the rear boundary of that car-park, then continuing in a westerly direction along the rear boundary of properties fronting onto Grattan Road as far as Salthill Road Lower and then continuing in a southerly direction along the centre of Salthill Road Lower to the first-mentioned point.

Schedule 8, Part 5 Description of qualifying resort areas of Kerry
Section 351.

Ballybunion

1.That part of the District Electoral Division of Killehenny comprised in the Townlands of Ballyeagh, Killehenny, Ballybunion, Dromin and Doon West.

2.That part of the District Electoral Division of Killehenny comprised in that part of the Townland of Gortnaskeha bounded by a line commencing at the point (in this description referred to as “the first-mentioned point”) where the boundaries of the Townlands of Ballyeagh, Gortnaskeha and Ahimma converge, then continuing in an easterly direction along the boundary between the Townlands of Gortnaskeha and Ahimma to a point where it intersects with the centre of the Tralee/Ballybunion Regional Road (R551), then continuing in a north-westerly direction along the centre of that road for 1,192 metres to a point where the road would intersect with a line drawn along the westerly projection of the northern boundary of the existing ESB transformer site, then continuing in a north-easterly direction along the existing field boundary to the centre of the Listowel/Ballybunion Regional Road (R553), then continuing in a northerly direction to the centre of the Local Road (County Road 28), then continuing in a westerly direction along that road for 230 metres, then continuing in a northerly direction to a point where it intersects with the boundary between the Townlands of Dromin and Gortnaskeha, and then continuing in a southerly direction along the western boundary of the Townland of Gortnaskeha to the first-mentioned point.

3.That part of the District Electoral Division of Killehenny comprised in that part of the Townland of Doon East bounded by a line commencing at the point (in this description referred to as “the first-mentioned point”) where the Ballybunion/Beale Local Road (County Road 4) intersects the Ballybunion/Asdee Regional Road (R551), then continuing in a north-easterly direction along the centre of that Regional road for 250 metres, then continuing in a southerly direction along the rear boundary of the existing housing development to the boundary of the Townlands of Doon East and Doon West, then continuing in a westerly direction along that boundary to the centre of the Regional Road (R551), and then continuing in a northerly direction along the centre of that road to the first-mentioned point.

Schedule 8, Part 6 Description of qualifying resort areas of Louth
Section 351.

Clogherhead

That part of the District Electoral Division of Clogher comprised in the Townland of Clogher and that part of the Townland of Callystown bounded on the west by the Termonfeckin/Annagassan Local Road (County Road 281) and on the north by the Dunleer/Clogherhead Regional Road (R166).

Schedule 8, Part 7 Description of qualifying resort areas of Mayo
Section 351.

Achill

1.The District Electoral Divisions of Slievemore, Dooega, Achill and Corraun Achill.

2.That part of the District Electoral Division of Newport West comprised in the Townland of Mallanranny.

Westport

1.That part of the District Electoral Division of Westport Urban comprised in the Townlands of Ardmore, Cloonmonad, Cahernamart, Carrownalurgan, Knockranny, Westport Demesne (Urban District), Deerpark East, Carrowbeg and those parts of the Townlands of Carrowbaun and Killaghoor contained within the administrative area of the urban district of Westport.

2.That part of the District Electoral Division of Westport Rural comprised in Roman Island and the Townland of Rossbeg.

3.That part of the District Electoral Division of Kilmeena comprised in that part of the Townland of Westport Demesne (Rural District) bounded by a line commencing at the point (in this description referred to as “the first-mentioned point”) forming the most north-westerly point of the Townland of Westport Demesne (Urban District), then continuing in a westerly direction for 100 yards, then continuing in a northerly direction for 320 yards, then continuing in a south-easterly direction for 630 yards following the field boundary south of Kennedy’s Wood as far as the administrative boundary of the urban district of Westport and then continuing along that boundary initially in a south-westerly direction to the first-mentioned point.

Schedule 8, Part 8 Description of qualifying resort areas of Meath
Section 351.

Bettystown, Laytown and Mosney

1.That part of the District Electoral Division of Julianstown comprised in that part of the Townland of Mornington bounded on the north by a line commencing at the high water mark and continuing in a westerly direction along the northern boundary of Laytown/Bettystown Golf Links to a point where it intersects with the boundary of the Townland of Donacarney Great; and those parts of the Townlands of Betaghstown, Sevitsland, Ministown and Ninch which are situated to the east of the Dublin/Belfast railway line.

2.That part of the District Electoral Division of Julianstown comprised in the Townland of Mosney and that part of the Townland of Briarleas situated to the east of Local Road (County Road 438).

Schedule 8, Part 9 Description of qualifying resort areas of Sligo
Section 351.

Enniscrone

1.That part of the District Electoral Division of Kilglass comprised in the Townlands of Carrowhubbock North, Carrowhubbock South, Frankford, Kinard and Trotts.

2.That part of the District Electoral Division of Castleconnor West comprised in the Townlands of Bartragh, Carrowcardin, Muckduff and Scurmore.

Schedule 8, Part 10 Description of qualifying resort areas of Waterford
Section 351.

Tramore

1.That part of the District Electoral Division of Islandikane comprised in the Townlands of Westtown, Newtown and Coolnagoppoge.

2.That part of the District Electoral Division of Tramore comprised in the Townlands of Ballycarnane, Monloum, Tramore East, Tramore West, Crobally Upper, Crobally Lower, Tramore Intake and including the land bounded on the west by the Townlands of Tramore West, Crobally Upper and Tramore Intake (part b), on the north by the Townlands of Ballinattin and Tramore Intake (part a), on the east by a line running in a south-easterly direction from Tramore Intake (part a) along the centre of the embankment to the Townland of Tramore Burrow and continuing in that direction as far as the high water mark, and on the south by the high water mark.

Schedule 8, Part 11 Description of qualifying resort areas of Wexford
Section 351.

Courtown

1.That part of the District Electoral Division of Courtown comprised in the Townlands of Courtown and Ballinatray Lower.

2.That part of the District Electoral Division of Ardamine comprised in the Townlands of Ballinatray Upper, Seamount, Middletown, Parknacross and Glen (Richards).

Schedule 8, Part 12 Description of qualifying resort areas of Wicklow
Section 351.

Arklow

1.The administrative area of the urban district of Arklow.

2.That part of the District Electoral Division of Arklow Rural comprised in the Townlands of Clogga and Askintinny.

3.That part of the District Electoral Division of Kilbride comprised in the Townlands of Seabank and Johnstown South.

Schedule 8A Description of Qualifying Rural Areas
Section 372L.

Part 1 Description of qualifying rural areas of Cavan

The District Electoral Divisions of Arvagh, Springfield, Killashandra, Milltown, Carrafin, Grilly, Kilconny, Belturbet Urban, Ardue, Carn, Bilberry, Diamond, Doogary, Lissanover, Ballymagauran, Ballyconnell, Bawnboy, Templeport, Benbrack, Pedara Vohers, Tircahan, Swanlinbar, Kinawley, Derrynananta, Dunmakeever, Dowra, Derrylahan, Tuam, Killinagh, Eskey, Teebane, Scrabby, Loughdawan, Bruce Hall, Drumcarban, Corr, Crossdoney and Killykeen.

Part 2 Description of qualifying rural areas of Leitrim

The administrative county of Leitrim.

Part 3 Description of qualifying rural areas of Longford

The administrative county of Longford.

Part 4 Description of qualifying rural areas of Roscommon

The District Electoral Divisions of Ballintober, Castleteheen, Carrowduff, Kilbride North, Lissonuffy, Killavackan, Termonbarry, Roosky, Kilglass North, Kilglass South, Bumlin, Cloonfinlough, Killukin (in Roscommon Rural District), Strokestown, Annaghmore, Tulsk, Coolougher, Ballinlough, Kiltullagh, Cloonfower, Artagh South, Artagh North, Ballaghaderreen, Edmondstown, Loughglinn, Buckill, Fairymount, Castlereagh, Frenchpark, Bellangare, Castleplunket, Baslick, Breedoge, Altagowlan, Lough Allen, Ballyfarnan, Keadue, Aghafin, Ballyformoyle, Crossna, Kilbryan, Boyle Rural, Boyle Urban, Tivannagh, Rushfield, Tumna North, Tumna South, Killukin (in Boyle No. 1 Rural District), Oakport, Rockingham, Danesfort, Cloonteem, Kilmore, Elia, Ballygarden, Aughrim East, Aughrim West, Creeve (in Boyle No. 1 Rural District), Creeve (in Roscommon Rural District), Elphin, Rossmore, Cloonyquinn, Ogulla, Mantua, Lisgarve, Kilmacumsy, Kilcolagh, Estersnow, Croghan, Killummod, Cregga, Cloonygormican, Kilbride South, Kilgefin, Cloontuskert, Drumdaff and Kilteevan.

Part 5 Description of qualifying rural areas of Sligo

The District Electoral Divisions of Ballintogher East, Ballynakill, Lisconny, Drumfin, Ballymote, Cloonoghill, Leitrim, Tobercurry, Kilturra, Cuilmore, Kilfree, Coolavin, Killaraght, Templevanny, Aghanagh, Kilmactranny, Ballynashee, Shancough, Drumcolumb, Riverstown, Lakeview, Bricklieve, Drumrat, Toomour, Kilshalvy, Killadoon, Streamstown, Cartron, Coolaney, Owenmore, Temple, Annagh, Carrickbannagher, Collooney and Ballintogher West.

Schedule 8B Description of Qualifying Mid-Shannon Areas
Part 1 Description of qualifying mid-Shannon areas of Clare

The District Electoral Divisions of Ayle, Ballynahinch, Boherglass, Caherhurley, Cappaghabaun, Carrowbaun, Cloonusker, Coolreagh, Corlea, Derrynagittagh, Drummaan, Fahymore, Feakle, Inishcaltra North, Inishcaltra South, Killaloe, Killokennedy, Killuran, Kilseily, Lackareagh, Loughea, Mountshannon, O’Briensbridge, Ogonnelloe and Scarriff.

Part 2 Description of qualifying mid-Shannon areas of Galway

The District Electoral Divisions of Abbeygormacan, Abbeyville, Balinasloe Rural, Ballinasloe Urban, Ballyglass, Ballynagar, Bracklagh, Clonfert, Clontuskert, Coos, Derrew, Drumkeary, Drummin, Eyrecourt, Kellysgrove, Killimor (Portumna rural area), Kilmacshane, Kilmalinoge, Kilquain, Kiltormer, Kylemore, Laurencetown, Leitrim, Lismanny, Loughatorick, Marblehill, Meelick, Moat, Pallas, Portumna, Tiranascragh, Tynagh and Woodford.

Part 3 Description of qualifying mid-Shannon areas of Offaly

The District Electoral Divisions of Ballycumber, Banagher, Birr Rural, Birr Urban, Broughal, Cloghan, Clonmacnoise, Derryad, Doon, Drumcullen, Eglish, Ferbane, Gallen, Hinds, Hunston, Killyon, Lumcloon, Lusmagh, Mounterin, Moyclare, Shannonbridge, Shannonharbour, Srah and Tinamuck.

Part 4 Description of qualifying mid-Shannon areas of Roscommon

The District Electoral Divisions of Athleague East, Athleague West, Athlone West Rural, Ballydangan, Ballynamona, Castlesampson, Caltragh, Cams, Carnagh, Carrowreagh, Cloonburren, Cloonown, Crannagh, Creagh, Culliagh, Drumlosh, Dysart, Fuerty, Kilcar, Kiltoom, Lackan, Lecarrow, Lismaha, Moore, Mote, Rockhill, Roscommon Rural, Roscommon Urban, Scregg, Taghmaconnell, Thomastown and Turrock.

Part 5 Description of qualifying mid-Shannon areas of Tipperary

The District Electoral Divisions of Aglishcloghane, Ardcrony, Ballina, Ballingarry (in Borrisokane rural area), Ballygibbon, Ballylusky, Ballymackey, Ballynaclogh, Birdhill, Borrisokane, Burgesbeg, Carrig, Carrigatogher, Castletown, Cloghprior, Clohaskin, Cloghjordan, Derrycastle, Finnoe, Graigue (in Borrisokane rural area), Greenhall, Kilbarron, Kilcomenty, Killoscully, Kilkeary, Kilmore, Kilnarath, Knigh, Lackagh, Lorrha East, Lorrha West, Mertonhall, Monsea, Nenagh East Urban, Nenagh Rural, Nenagh West Urban, Newport, Rathcabban, Redwood, Riverstown, Terryglass, Uskane and Youghalarra.

Part 6 Description of qualifying mid-Shannon areas of Westmeath

The District Electoral Divisions of Athlone East Rural, Athlone East Urban, Athlone West Urban, Ardnagragh, Auburn, Ballymore, Bellanalack, Carn, Castledaly, Doonis, Drumraney, Glassan, Killinure, Moate, Mount Temple, Moydrum, Muckanagh, Noughaval, Templepatrick, Tubbrit, Umma and Winetown.

Property Allowance Issues

TAXES CONSOLIDATION ACT

Principal Provisions Relating to Relief for Capital Expenditure (ss. 268-321)

Meaning of “industrial building or structure”.

Meaning of “the relevant interest”.

Meaning of “expenditure on construction of building or structure”.

Industrial building allowances.

Writing-down allowances.

Acceleration of writing-down allowances in respect of certain expenditure on certain industrial buildings or structures.

Balancing allowances and balancing charges.

Restriction of balancing allowances on sale of industrial building or structure.

Application of sections 272 and 274 in relation to capital expenditure on refurbishment.

Writing off of expenditure and meaning of “residue of expenditure”.

Manner of making allowances and charges.

Purchases of certain buildings or structures.

Temporary disuse of building or structure.

Special provisions in regard to leases.

Supplementary provisions (Chapter 1).

Chapter 3 Dredging: initial allowances and annual allowances (ss. 302-303)

Interpretation (Chapter 3).

Allowances for expenditure on dredging.

Meaning of basis period.

Corporation tax: allowances and charges in taxing a trade.

Assets transferred in course of scheme of reconstruction or amalgamation.

Companies not resident in the State.

Allowances in respect of certain contributions to capital expenditure of local authorities.

Apportionment of consideration and exchanges and surrenders of leasehold interests.

Special provisions as to certain sales.

Effect, in certain cases, of succession to trade, etc.

Procedure on apportionment.

Property used for purposes of “exempted trading operations”.

Interpretation of certain references to expenditure and time when expenditure is incurred.

Treatment of grants.

Meaning of “sale, insurance, salvage or compensation moneys”.

Adjustment of allowances by reference to value-added tax.

Other interpretation (Part 9).

Provisions of general application in relation to the making of allowances and charges.

Schedules 5-8 former special tax allowance areas

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