Special Property Allowances

Table of Contents

TAXES CONSOLIDATION ACT

Part 10 Income Tax and Corporation Tax: Reliefs for Renewal and Improvement of Certain Urban Areas, Certain Resort Areas and Certain Islands (ss. 322-372AAC)

Chapter 1 Custom House Docks Area (ss. 322-329)

322. Interpretation (Chapter 1).
(1)In this Chapter, but subject to subsection (2) –

“the Custom House Docks Area” means the area described in paragraph 2 of Schedule 5;

“the specified period” means the period commencing on the 25th day of January, 1988, and ending on –
(a)the 24th day of January, 1999, for the purposes of section 324,
(b)the 31st day of December, 1999, for the purposes of sections 325 to 328, and
(c)the 31st day of December, 1999, for the purposes of section 323; but where, in relation to the construction of a qualifying premises within the meaning of that section, at least 51 per cent of the total capital expenditure which is incurred on the construction of the premises is incurred before the 1st day of January, 2000, the reference in this paragraph to the 31st day of December, 1999, shall be construed as a reference to the 30th day of June, 2000.

(2)For the purposes of this Chapter, the Minister for Finance, after consultation with the Minister for the Environment and Local Government, may by order direct that –

(a)the definition of “the Custom House Docks Area” shall include such area or areas described in the order which but for the order would not be included in that definition, and

(b)as respects any such area so described, the definition of “the specified period” shall be construed as a reference to such period as shall be specified in the order in relation to that area; but no such period specified in the order shall commence before the 26th day of January, 1994, or end after-

(i)the 24th day of January, 1999, for the purposes of section 324,

(ii)the 31st day of December, 1999, for the purposes of sections 325 to 328, and

(iii)the 31st day of December, 1999, for the purposes of section 323; but where, in relation to the construction of a qualifying premises within the meaning of that section, at least 51 per cent of the total capital expenditure which is incurred on the construction of the premises is incurred before the 1st day of January, 2000, the reference in this subparagraph to the 31st day of December, 1999, shall be construed as a reference to the 30th day of June, 2000,

and, where the Minister for Finance so orders, the definition of “the Custom House Docks Area” shall be deemed to include that area or those areas and the definition of “the specified period” shall be construed as a reference to the period specified in the order.

(3)The Minister for Finance may make orders for the purpose of this section and any order made under this section shall be laid before Dáil Éireann as soon as may be after it is made and, if a resolution annulling the order is passed by Dáil Éireann within the next 21 days on which Dáil Éireann has sat after the order is laid before it, the order shall be annulled accordingly, but without prejudice to the validity of anything previously done thereunder.

(4)Schedule 5 shall apply for the purposes of supplementing this Chapter.

323. Capital allowances in relation to construction of certain commercial premises.
(1)In this section, “qualifying premises” means a building or structure the site of which is wholly within the Custom House Docks Area and which –

(a)apart from this section is not an industrial building or structure within the meaning of section 268(1), and

(b)

(i)is in use for the purposes of a trade or profession, or

(ii)whether or not it is so used, is let on bona fide commercial terms for such consideration as might be expected to be paid in a letting of the building or structure negotiated on an arm’s length basis,

but does not include any building or structure in use as or as part of a dwelling house.

(2)

(a)Subject to subsections (3) to (5), the provisions of the Tax Acts relating to the making of allowances or charges in respect of capital expenditure incurred on the construction of an industrial building or structure shall, notwithstanding anything to the contrary in those provisions, apply –

(i)as if a qualifying premises were, at all times at which it is a qualifying premises, 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 Chapter 1 of Part 9 by reason of its use for a purpose specified in section 268(1)(a), and

(ii)where any activity carried on in the qualifying premises is not a trade, as if it were a trade.

(b)An allowance shall be given by virtue of this subsection in respect of any capital expenditure incurred on the construction of a qualifying premises only in so far as that expenditure is incurred in the specified period.

(3)

(a)For the purposes of the application, by subsection (2), of sections 271 and 273 in relation to capital expenditure incurred in the specified period on the construction of a qualifying premises –

(i)section 271 shall apply as if –

(I)in subsection (1) of that section the definition of “industrial development agency” were deleted,

(II)in subsection (2)(a)(i) of that section “to which subsection (3) applies” were deleted,

(III)subsections (3) and (5) of that section were deleted, and

(IV)the following subsection were substituted for subsection (4) of that section:

“(4)An industrial building allowance shall be of an amount equal to 50 per cent of the capital expenditure mentioned in subsection (2).”,

and

(ii)section 273 shall apply as if –

(I)in subsection (1) of that section the definition of “industrial development agency” were deleted, and

(II)subsections (2)(b) and (3) to (7) of that section were deleted.

(b)[deleted]

(4)Notwithstanding section 274(1), no balancing charge shall be made in relation to a qualifying premises by reason of any of the events specified in that section which occurs –

(a)more than 13 years after the qualifying premises was first used, or

(b)in a case where section 276 applies, more than 13 years after the capital expenditure on refurbishment of the qualifying premises was incurred.

(5)For the purposes only of determining, in relation to a claim for an allowance by virtue of subsection (2), whether and to what extent capital expenditure incurred on the construction of a qualifying premises is incurred in the specified period, only such an amount of that capital expenditure as is properly attributable to work on the construction of the premises actually carried out during the specified period shall (notwithstanding 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.

324. Double rent allowance in respect of rent paid for certain business premises.
(1)

(a)In this section –

“lease”, “lessee”, “lessor” and “rent” have the same meanings respectively as in Chapter 8 of Part 4;

“market value”, in relation to a building or structure, means the price which the unencumbered fee simple of the building or structure would fetch if sold in the open market in such manner and subject to such conditions as might reasonably be calculated to obtain for the vendor the best price for the building or structure, less the part of that price which would be attributable to the acquisition of, or of rights in or over, the land on which the building or structure is constructed;

“qualifying lease” means, subject to subsection (4), a lease in respect of a qualifying premises granted in the specified period, or within the period of 2 years from the day next after the end of the specified period, on bona fide commercial terms by a lessor to a lessee not connected with the lessor, or with any other person entitled to a rent in respect of the qualifying premises, whether under that lease or any other lease;

“qualifying premises” means a building or structure the site of which is wholly within the Custom House Docks Area and –
(i)
(I)which is an industrial building or structure within the meaning of section 268(1), and in respect of which capital expenditure is incurred in the specified period for which an allowance is to be made for the purposes of income tax or corporation tax, as the case may be, under Chapter 1 of Part 9, or
(II)in respect of which an allowance is to be made, or, as respects rent payable under a qualifying lease entered into on or after the 18th day of April, 1991, will by virtue of section 279 be made, for the purposes of income tax or corporation tax, as the case may be, under Chapter 1 of Part 9 by virtue of section 323, and
(ii)which is let on bona fide commercial terms for such consideration as might be expected to be paid on a letting of the building or structure negotiated on an arm’s length basis
but, as respects rent payable under a qualifying lease entered into on or after the 6th day of May, 1993, where capital expenditure is incurred in the specified period 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 Chapter 1 of Part 9, the building or structure shall not be regarded as a qualifying premises unless the total amount of the expenditure so incurred is not less than an amount equal to 10 per cent of the market value of the building or structure immediately before that expenditure is incurred;

“refurbishment”, in relation to a building or structure, 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 the building or structure.

(b)For the purposes of this section but subject to paragraph (c), so much of a period, being a period when rent is payable by a person in relation to a qualifying premises under a qualifying lease, shall be a relevant rental period as does not exceed –

(i)10 years, or

(ii)the period by which 10 years exceeds –

(I)any preceding period, or

(II)if there is more than one preceding period, the aggregate of those periods,

for which rent was payable –

(A)by that person or any other person, or

(B)as respects rent payable in relation to any qualifying premises under a qualifying lease entered into before the 11th day of April, 1994, by that person or any person connected with that person,

in relation to that premises under a qualifying lease.

(c)As respects rent payable in relation to any qualifying premises under a qualifying lease entered into before the 18th day of April, 1991, “relevant rental period”, in relation to a qualifying premises, means the period of 10 years commencing on the day on which rent in respect of that premises is first payable under any qualifying lease.

(2)Subject to subsection (3), where in the computation of the amount of the profits or gains of a trade or profession a person is apart from this section entitled to any deduction (in this subsection referred to as “the first-mentioned deduction”) on account of rent in respect of a qualifying premises occupied by such person for the purposes of that trade or profession which is payable by such person –

(a)for a relevant rental period, or

(b)as respects rent payable in relation to any qualifying premises under a qualifying lease entered into before the 18th day of April, 1991, in the relevant rental period,

in relation to that qualifying premises under a qualifying lease, such person shall be entitled in that computation to a further deduction (in this subsection referred to as “the second-mentioned deduction”) equal to the amount of the first-mentioned deduction but, as respects a qualifying lease granted on or after the 21st day of April, 1997, where the first-mentioned deduction is on account of rent payable by such person to a connected person, such person shall not be entitled in that computation to the second-mentioned deduction.

(3)Where a person holds an interest in a qualifying premises out of which interest a qualifying lease is created directly or indirectly in respect of the qualifying premises and in respect of rent payable under the qualifying lease a claim for a further deduction under this section is made, and such person or, as respects rent payable in relation to any qualifying premises under a qualifying lease entered into on or after the 6th day of May, 1993, either such person or another person connected with such person –

(a)takes under a qualifying lease a qualifying premises (in this subsection referred to as “the second-mentioned premises”) occupied by such person or such other person, as the case may be, for the purposes of a trade or profession, and

(b)is apart from this section entitled, in the computation of the amount of the profits or gains of that trade or profession, to a deduction on account of rent in respect of the second-mentioned premises,

then, unless such person or such other person, as the case may be, shows that the taking on lease of the second-mentioned premises was not undertaken for the sole or main benefit of obtaining a further deduction on account of rent under this section, such person or such other person, as the case may be, shall not be entitled in the computation of the amount of the profits or gains of that trade or profession to any further deduction on account of rent in respect of the second-mentioned premises.

(4)

(a)In this subsection –

“current value”, in relation to minimum lease payments, means the value of those payments discounted to their present value at a rate which, when applied at the inception of the lease to –

(i)those payments, including any initial payment but excluding any payment or part of any payment for which the lessor will be accountable to the lessee, and

(ii)any unguaranteed residual value of the qualifying premises, excluding any part of such value for which the lessor will be accountable to the lessee,

produces discounted present values the aggregate amount of which equals the amount of the fair value of the qualifying premises;

“fair value”, in relation to a qualifying premises, means an amount equal to such consideration as might be expected to be paid for the premises on a sale negotiated on an arm’s length basis less any grants receivable towards the purchase of the qualifying premises;

“inception of the lease” means the earlier of the time the qualifying premises is brought into use or the date from which rentals under the lease first accrue;

“minimum lease payments” means the minimum payments over the remaining part of the term of the lease to be paid to the lessor, and includes any residual amount to be paid to the lessor at the end of the term of the lease and guaranteed by the lessee or by a person connected with the lessee;

“unguaranteed residual value”, in relation to a qualifying premises, means that part of the residual value of that premises at the end of a term of a lease, as estimated at the inception of the lease, the realisation of which by the lessor is not assured or is guaranteed solely by a person connected with the lessor.

(b)A finance lease, that is –

(i)a lease in respect of a qualifying premises where, at the inception of the lease, the aggregate of the current value of the minimum lease payments (including any initial payment but excluding any payment or part of any payment for which the lessor will be accountable to the lessee) payable by the lessee in relation to the lease amounts to 90 per cent or more of the fair value of the qualifying premises, or

(ii)a lease which in all the circumstances is considered to provide in substance for the lessee the risks and benefits associated with ownership of the qualifying premises other than legal title to that premises,

shall not be a qualifying lease for the purposes of this section.

(5)Notwithstanding any other provision of this section, subsection (2) shall not apply –

(a)in respect of rent payable, under a qualifying lease, for any part of a relevant rental period between 3 December 1998 and 31 December 2003 unless –

(i)in the case of a qualifying premises within an area or areas included in the definition of “the Custom House Docks Area” by virtue of being described in an order of the Minister for Finance made under section 322(2), an agreement in writing or a contract in writing to secure the development of the building or structure, which comprises the qualifying premises or in which the qualifying premises is located, was entered into in the specified period, but by 2 December 1998, with the Dublin Docklands Development Authority (within the meaning of section 14 of the Dublin Docklands Development Authority Act, 1997), or

(ii)in the case of any other qualifying premises, an agreement in writing or a contract in writing to secure the development of the building or structure, which comprises the qualifying premises or in which the qualifying premises is located, was entered into in the specified period, but by 2 December 1998, and such development was wholly or mainly completed before 1 January 2000,

(b)n respect of rent payable, under a qualifying lease, for any part of a relevant rental period between 1 January 2004 and 31 December 2008, in the case of a qualifying premises to which subsection (2) applies by virtue of paragraph (a)(i),

(c)in respect of rent payable, under a qualifying lease, for any part of a relevant rental period between 1 January 2004 and 31 December 2008, in the case of a qualifying premises to which subsection (2) applies by virtue of paragraph (a)(ii), unless –

(i)the construction or refurbishment of the qualifying premises, which is the subject of the qualifying lease, was completed prior to 1 April 1998, or

(ii)

(I)the construction or refurbishment of the qualifying premises, which is the subject of the qualifying lease, commenced prior to 1 April 1998, and

(II)such premises was occupied by a lessee, under a qualifying lease, prior to 9 February 1999,

(d)in respect of rent payable, under a qualifying lease, for any part of a relevant rental period after 31 December 2008.

325. Rented residential accommodation: deduction for certain expenditure on construction.
Repealed from 1 January 2002
(1)In this section –

“qualifying period” means the period commencing on the 30th day of January, 1991, and ending on the last day of the specified period;

“qualifying premises” means, subject to subsections (3), (4)(a) and (5) of section 329, a house in the Custom House Docks Area –
(a)which is used solely as a dwelling
(b)the total floor area of which –
(i)is not less than 30 square metres and not more than –
(I)125 square metres, or
(II)as respects expenditure incurred before the 12th day of April, 1995, 90 square metres
in the case where the house is a separate self-contained flat or maisonette in a building of 2 or more storeys, or
(ii)in any other case, is not less than 35 square metres and not more than 125 square metres
(c)in respect of which, if it is not a new house (for the purposes of section 4 of the Housing (Miscellaneous Provisions) Act, 1979) provided for sale, there is in force a certificate of reasonable cost, the amount specified in which in respect of the cost of construction of the house is not less than the expenditure actually incurred on such construction, and
(d)which without having been used is first let in its entirety under a qualifying lease and thereafter throughout the remainder of the relevant period (except for reasonable periods of temporary disuse between the ending of one qualifying lease and the commencement of another such lease) continues to be let under such a lease;

“relevant cost”, in relation to a house, means, subject to subsection (3), an amount equal to the aggregate of –
(a)the expenditure incurred on the acquisition of, or of rights in or over, any land on which the house is constructed, and
(b)the expenditure actually incurred on the construction of the house;

“relevant period”, in relation to a qualifying premises, means the period of 10 years beginning on the date of the first letting of the premises under a qualifying lease.

(2)Subject to subsection (3), where a person, having made a claim in that behalf, proves to have incurred expenditure on the construction of a qualifying premises –

(a)such person shall be entitled, in computing for the purposes of section 97(1) the amount of a surplus or deficiency in respect of the rent from the qualifying premises, to a deduction of so much (if any) of that expenditure as is to be treated under section 329(7) or under this section as having been incurred by such person in the qualifying period, and

(b)Chapter 8 of Part 4 shall apply as if that deduction were a deduction authorised by section 97(2).

(3)

(a)This subsection shall apply to any premium or other sum which is payable, directly or indirectly, under a qualifying lease or otherwise under the terms subject to which the lease is granted, to or for the benefit of the lessor or to or for the benefit of any person connected with the lessor.

(b)Where any premium or other sum to which this subsection applies, or any part of such premium or such other sum, is not or is not treated as rent for the purposes of section 97, the expenditure to be treated as having been incurred in the qualifying period on the construction of the qualifying premises to which the qualifying lease relates shall be deemed for the purposes of subsection (2) to be reduced by the lesser of –

(i)the amount of such premium or such other sum or, as the case may be, that part of such premium or such other sum, and

(ii)the amount which bears to the amount mentioned in subparagraph (i) the same proportion as the amount of the expenditure actually incurred on the construction of the qualifying premises which is to be treated under section 329(7) as having been incurred in the qualifying period bears to the whole of the expenditure incurred on that construction.

(a)of the expenditure incurred on the construction of that building or those buildings, and

(b)of the amount which would be the relevant cost in relation to that building or those buildings if the building or buildings, as the case may be, were a single qualifying premises,

for the purposes of determining the expenditure incurred on the construction of the qualifying premises and the relevant cost in relation to the qualifying premises.

(5)Where a house is a qualifying premises and at any time during the relevant period in relation to the premises either of the following events occurs –

(a)the house ceases to be a qualifying premises, or

(b)the ownership of the lessor’s interest in the house passes to any other person but the house does not cease to be a qualifying premises,

then, the person who before the occurrence of the event received or was entitled to receive a deduction under subsection (2) in respect of expenditure incurred on the construction of the qualifying premises shall be deemed to have received on the day before the day of the occurrence of the event an amount as rent from the qualifying premises equal to the amount of the deduction.

(6)

(a)Where the event mentioned in subsection (5)(b) occurs in the relevant period in relation to a house which is a qualifying premises, the person to whom the ownership of the lessor’s interest in the house passes shall be treated for the purposes of this section as having incurred in the qualifying period an amount of expenditure on the construction of the house equal to the amount which under section 329(7) or under this section (apart from subsection (3)(b)) the lessor was treated as having incurred in the qualifying period on the construction of the house; but, in the case of a person who purchases such a house, the amount so treated as having been incurred by such person shall not exceed the relevant price paid by such person on the purchase.

(b)For the purposes of this subsection and subsection (7), the relevant price paid by a person on the purchase of a house shall be the amount which bears to the net price paid by such person on that purchase the same proportion as the amount of the expenditure actually incurred on the construction of the house which is to be treated under section 329(7) as having been incurred in the qualifying period bears to the relevant cost in relation to that house.

(7)

(a)Subject to paragraph (b), where expenditure is incurred on the construction of a house and before the house is used it is sold, the person who purchases the house shall be treated for the purposes of this section as having incurred in the qualifying period expenditure on the construction of the house equal to the lesser of –

(i)the amount of such expenditure which is to be treated under section 329(7) as having been incurred in the qualifying period, and

(ii)the relevant price paid by such person on the purchase;

but, where the house is sold more than once before it is used, this subsection shall apply only in relation to the last of those sales.

(b)Where expenditure is incurred on the construction of a house by a person carrying on a trade or part of a trade which consists, as to the whole or any part of that trade, of the construction of buildings with a view to their sale and the house, before it is used, is sold in the course of that trade or, as the case may be, that part of that trade –

(i)the person (in this paragraph referred to as “the purchaser”) who purchases the house shall be treated for the purposes of this section as having incurred in the qualifying period expenditure on the construction of the house equal to the relevant price paid by the purchaser on the purchase (in this paragraph referred to as “the first purchase”), and

(ii)in relation to any subsequent sale or sales of the house before the house is used, paragraph (a) shall apply as if the reference to the amount of expenditure which is to be treated as having been incurred in the qualifying period were a reference to the relevant price paid on the first purchase.

(8)Section 329 shall apply for the purposes of supplementing this section.

326. Rented residential accommodation: deduction for certain expenditure on conversion.
Repealed from 1 January 2002
(1)In this section –

“conversion expenditure” means, subject to subsection (2), expenditure incurred on –
(a)the conversion into a house of a building in the Custom House Docks Area which has not been previously in use as a dwelling, and
(b)the conversion into 2 or more houses of a building in the Custom House Docks Area which before the conversion had not been in use as a dwelling or had been in use as a single dwelling,

and references in this section and in section 329 to “conversion”, “conversion into a house” and “expenditure incurred on conversion” shall be construed accordingly;

“qualifying lease”, in relation to a house, means, subject to section 329(2), a lease of the house the consideration for the grant of which consists –
(a)solely of periodic payments all of which are or are to be treated as rent for the purposes of Chapter 8 of Part 4, or
(b)of payments of the kind mentioned in paragraph (a), together with a payment by means of a premium which does not exceed 10 per cent of the market value of the house at the time the conversion is completed and, in the case of a house which is a part of a building and is not saleable apart from the building of which it is a part, the market value of the house at the time the conversion is completed shall for the purposes of this paragraph be taken to be an amount which bears to the market value of the building at that time the same proportion as the total floor area of the house bears to the total floor area of the building;

“qualifying period” means the period commencing on the 30th day of January, 1991, and ending on the last day of the specified period;

“qualifying premises” means, subject to subsections (3), (4)(b) and (5) of section 329, a house –
(a)which is used solely as a dwelling
(b)the total floor area of which –
(i)is not less than 30 square metres and not more than –
(I)125 square metres, or
(II)as respects expenditure incurred before the 26th day of January, 1994, 90 square metres
in the case where the house is a separate self-contained flat or maisonette in a building of 2 or more storeys, or
(ii)in any other case, is not less than 35 square metres and not more than 125 square metres
(c)in respect of which there is in force a certificate of reasonable cost the amount specified in which in respect of the cost of conversion in relation to the house is not less than the expenditure actually incurred on such conversion, and
(d)which without having been used subsequent to the incurring of the expenditure on the conversion is first let in its entirety under a qualifying lease and thereafter throughout the remainder of the relevant period (except for reasonable periods of temporary disuse between the ending of one qualifying lease and the commencement of another such lease) continues to be let under such a lease;

“relevant period”, in relation to a qualifying premises, means the period of 10 years beginning on the date of the first letting of the premises under a qualifying lease.

(2)For the purposes of this section, expenditure incurred on the conversion of a building shall be deemed to include expenditure incurred in the course of the conversion on either or both of the following –

(a)the carrying out of any works of construction, reconstruction, repair or renewal, and

(b)the provision or improvement of water, sewerage or heating facilities,

in relation to the building or any outoffice appurtenant to or usually enjoyed with the building, but shall not be deemed to include –

(i)any expenditure in respect of which any person is entitled to a deduction, relief or allowance under any other provision of the Tax Acts, or

(ii)any expenditure attributable to any part (in this section referred to as a “non-residential unit”) of the building which on completion of the conversion is not a house.

(3)For the purposes of subsection (2)(ii), where expenditure is attributable to a building in general and not directly to any particular house or non-residential unit comprised in the building on completion of the conversion, such an amount of that expenditure shall be deemed to be attributable to a non-residential unit as bears to the whole of that expenditure the same proportion as the total floor area of the non-residential unit bears to the total floor area of the building.

(4)Subject to subsection (5), where a person, having made a claim in that behalf, proves to have incurred conversion expenditure in relation to a house which is a qualifying premises –

(a)such person shall be entitled, in computing for the purposes of section 97(1) the amount of a surplus or deficiency in respect of the rent from the qualifying premises, to a deduction of so much (if any) of the expenditure as is to be treated under section 329(7) or under this section as having been incurred by such person in the qualifying period, and

(b)Chapter 8 of Part 4 shall apply as if that deduction were a deduction authorised by section 97(2).

(5)

(b)Where any premium or other sum to which this subsection applies, or any part of such premium or such other sum, is not or is not treated as rent for the purposes of section 97, the conversion expenditure to be treated as having been incurred in the qualifying period in relation to the qualifying premises to which the qualifying lease relates shall be deemed for the purposes of subsection (4) to be reduced by the lesser of –

(i)the amount of such premium or such other sum or, as the case may be, that part of such premium or such other sum, and

(ii)the amount which bears to the amount mentioned in subparagraph (i) the same proportion as the amount of the conversion expenditure actually incurred in relation to the qualifying premises which is to be treated under section 329(7) as having been incurred in the qualifying period bears to the whole of the conversion expenditure incurred in relation to the qualifying premises.

(6)Where a qualifying premises forms a 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 conversion of that building or those buildings for the purposes of determining the conversion expenditure incurred in relation to the qualifying premises.

(7)Where a house is a qualifying premises and at any time during the relevant period in relation to the premises either of the following events occurs –

(a)the house ceases to be a qualifying premises, or

(b)the ownership of the lessor’s interest in the house passes to any other person but the house does not cease to be a qualifying premises,

then, the person who before the occurrence of the event received or was entitled to receive a deduction under subsection (4) in respect of conversion expenditure incurred in relation to the qualifying premises shall be deemed to have received on the day before the day of the occurrence of the event an amount as rent from the qualifying premises equal to the amount of the deduction.

(8)Where the event mentioned in subsection (7)(b) occurs in the relevant period in relation to a house which is a qualifying premises, the person to whom the ownership of the lessor’s interest in the house passes shall be treated for the purposes of this section as having incurred in the qualifying period an amount of conversion expenditure in relation to the house equal to the amount of the conversion expenditure which under section 329(7) or under this section (apart from subsection (5)(b)) the lessor was treated as having incurred in the qualifying period in relation to the house; but, in the case of a person who purchases such a house, the amount so treated as having been incurred by such person shall not exceed –

(a)the net price paid by such person on the purchase, or

(b)in case only a part of the conversion expenditure incurred in relation to the house is to be treated under section 329(7) as having been incurred in the qualifying period, the amount which bears to that net price the same proportion as that part bears to the whole of the conversion expenditure incurred in relation to the house.

(9)Where conversion expenditure is incurred in relation to a house and before the house is used subsequent to the incurring of that expenditure it is sold, the person who purchases the house shall be treated for the purposes of this section as having incurred in the qualifying period conversion expenditure in relation to the house equal to the lesser of –

(a)the amount of such expenditure which is to be treated under section 329(7) as having been incurred in the qualifying period, and

(b)

(i)the net price paid by such person on the purchase, or

(ii)in case only a part of the conversion expenditure incurred in relation to the house is to be treated under section 329(7) as having been incurred in the qualifying period, the amount which bears to that net price the same proportion as that part bears to the whole of the conversion expenditure incurred in relation to the house;

but, where the house is sold more than once before it is used subsequent to the incurring of the conversion expenditure in relation to the house, this subsection shall apply only in relation to the last of those sales.

(10)This section shall not apply in the case of a conversion unless planning permission in respect of the conversion has been granted under the Local Government (Planning and Development) Acts, 1963 to 1993.

(11)Section 329 shall apply for the purposes of supplementing this section.

327. Rented residential accommodation: deduction for certain expenditure on refurbishment.
Repealed from 1 January 2002
(1)In this section –

“qualifying lease”, in relation to a house, means, subject to section 329(2), a lease of the house the consideration for the grant of which consists –
(a)solely of periodic payments all of which are or are to be treated as rent for the purposes of Chapter 8 of Part 4, or
(b)of payments of the kind mentioned in paragraph (a), together with a payment by means of a premium –
(i)which is payable on or subsequent to the date of the completion of the refurbishment to which the relevant expenditure relates or which, if payable before that date, is so payable by reason of or otherwise in connection with the carrying out of the refurbishment, and
(ii)which does not exceed 10 per cent of the market value of the house on the date of completion of the refurbishment to which the relevant expenditure relates and, in the case of a house which is a part of a building and is not saleable apart from the building of which it is a part, the market value of the house on that date shall for the purposes of this subparagraph be taken to be an amount which bears to the market value of the building on that date the same proportion as the total floor area of the house bears to the total floor area of the building;

“qualifying period” means the period commencing on the 30th day of January, 1991, and ending on the last day of the specified period;

“qualifying premises” means, subject to subsections (3), (4)(b) and (5) of section 329, a house –
(a)which is used solely as a dwelling
(b)the total floor area of which –
(i)is not less than 30 square metres and not more than –
(I)125 square metres, or
(II)as respects expenditure incurred before the 26th day of January, 1994, 90 square metres
in the case where the house is a separate self-contained flat or maisonette in a building of 2 or more storeys, or
(ii)in any other case, is not less than 35 square metres and not more than 125 square metres
(c)in respect of which there is in force a certificate of reasonable cost the amount specified in which in respect of the cost of refurbishment in relation to the house is not less than the relevant expenditure actually incurred on such refurbishment, and
(d)which on the date of completion of the refurbishment to which the relevant expenditure relates is let (or, if not let on that date, is, without having been used after that date, first let) in its entirety under a qualifying lease and thereafter throughout the remainder of the relevant period (except for reasonable periods of temporary disuse between the ending of one qualifying lease and the commencement of another such lease) continues to be let under such a lease;

“refurbishment”, in relation to a building, means either or both of the following –
(a)the carrying out of any works of construction, reconstruction, repair or renewal, and
(b)the provision or improvement of water, sewerage or heating facilities
where the carrying out of such works or the provision of such facilities is certified by the Minister for the Environment and Local Government, in any certificate of reasonable cost granted by that Minister in relation to any house contained in the building, to have been necessary for the purposes of ensuring the suitability as a dwelling of any house in the building and whether or not the number of houses in the building, or the shape or size of any such house, is altered in the course of such refurbishment;

“relevant expenditure”, means expenditure incurred on the refurbishment of a specified building, other than expenditure attributable to any part (in this section referred to as a “non-residential unit”) of the building which on completion of the refurbishment is not a house, and for the purposes of this definition where expenditure is attributable to the specified building in general (and not directly to any particular house or non-residential unit comprised in the building on completion of the refurbishment), such an amount of that expenditure shall be deemed to be attributable to a non-residential unit as bears to the whole of that expenditure the same proportion as the total floor area of the non-residential unit bears to the total floor area of the building;

“relevant period” in relation to a qualifying premises, means the period of 10 years beginning on the date of the completion of the refurbishment to which the relevant expenditure relates or, if the premises was not let under a qualifying lease on that date, the period of 10 years beginning on the date of the first such letting after the date of such completion;

“specified building”, means a building in the Custom House Docks Area –
(a)in which before the refurbishment to which the relevant expenditure relates there are 2 or more houses, and
(b)which on completion of that refurbishment contains (whether in addition to any non-residential unit or not) 2 or more houses.

(2)Subject to subsection (3), where a person, having made a claim in that behalf, proves to have incurred relevant expenditure in relation to a house which is a qualifying premises –

(a)such person shall be entitled, in computing for the purposes of section 97(1) the amount of a surplus or deficiency in respect of the rent from the qualifying premises, to a deduction of so much (if any) of the expenditure as is to be treated under section 329(7) or under this section as having been incurred by such person in the qualifying period, and

(b)Chapter 8 of Part 4 shall apply as if that deduction were a deduction authorised by section 97(2).

(3)

(a)This subsection shall apply to any premium or other sum which –

(i)is payable, directly or indirectly, under a qualifying lease or otherwise under the terms subject to which the lease is granted, to or for the benefit of the lessor or to or for the benefit of any person connected with the lessor, and

(ii)is payable on or subsequent to the date of the completion of the refurbishment to which the relevant expenditure relates or, if payable before that date, is so payable by reason of or otherwise in connection with the carrying out of the refurbishment.

(b)Where any premium or other sum to which this subsection applies, or any part of such premium or such other sum, is not or is not treated as rent for the purposes of section 97, the relevant expenditure to be treated as having been incurred in the qualifying period in relation to the qualifying premises to which the qualifying lease relates shall be deemed for the purposes of subsection (2) to be reduced by the lesser of –

(i)the amount of such premium or such other sum or, as the case may be, that part of such premium or such other sum, and

(ii)the amount which bears to the amount mentioned in subparagraph (i) the same proportion as the amount of the relevant expenditure actually incurred in relation to the qualifying premises which is to be treated under section 329(7) as having been incurred in the qualifying period bears to the whole of the relevant expenditure incurred in relation to the qualifying premises.

(4)Where a qualifying premises forms a 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 relevant expenditure incurred on that building or those buildings for the purposes of determining the relevant expenditure incurred in relation to the qualifying premises.

(5)Where a house is a qualifying premises and at any time during the relevant period in relation to the premises either of the following events occurs –

(a)the house ceases to be a qualifying premises, or

(b)the ownership of the lessor’s interest in the house passes to any other person but the house does not cease to be a qualifying premises,

then, the person who before the occurrence of the event received or was entitled to receive a deduction under subsection (2) in respect of relevant expenditure incurred in relation to the qualifying premises shall be deemed to have received on the day before the day of the occurrence of the event an amount as rent from the qualifying premises equal to the amount of the deduction.

(6)Where the event mentioned in subsection (5)(b) occurs in the relevant period in relation to a house which is a qualifying premises, the person to whom the ownership of the lessor’s interest in the house passes shall be treated for the purposes of this section as having incurred in the qualifying period an amount of relevant expenditure in relation to the house equal to the amount of the relevant expenditure which under section 329(7) or under this section (apart from subsection (3)(b)) the lessor was treated as having incurred in the qualifying period in relation to the house; but, in the case of a person who purchases such a house, the amount so treated as having been incurred by such person shall not exceed –

(a)the net price paid by such person on the purchase, or

(b)in case only a part of the relevant expenditure incurred in relation to the house is to be treated under section 329(7) as having been incurred in the qualifying period, the amount which bears to that net price the same proportion as that part bears to the whole of the relevant expenditure incurred in relation to the house.

(7)Where relevant expenditure is incurred in relation to a house and before the house is used subsequent to the incurring of that expenditure it is sold, the person who purchases the house shall be treated for the purposes of this section as having incurred in the qualifying period relevant expenditure in relation to the house equal to the lesser of –

(a)the amount of such expenditure which is to be treated under section 329(7) as having been incurred in the qualifying period, and

(b)

(i)the net price paid by such person on the purchase, or

(ii)in case only a part of the relevant expenditure incurred in relation to the house is to be treated under section 329(7) as having been incurred in the qualifying period, the amount which bears to that net price the same proportion as that part bears to the whole of the relevant expenditure incurred in relation to the house;

but, where the house is sold more than once before it is used subsequent to the incurring of the relevant expenditure in relation to the house, this subsection shall apply only in relation to the last of those sales.

(8)This section shall not apply in the case of any refurbishment unless planning permission, in so far as it is required, in respect of the work carried out in the course of the refurbishment has been granted under the Local Government (Planning and Development) Acts, 1963 to 1993.

(9)Expenditure in respect of which a person is entitled to relief under this section shall not include any expenditure in respect of which any person is entitled to a deduction, relief or allowance under any other provision of the Tax Acts.

(10)Section 329 shall apply for the purposes of supplementing this section.

328. Residential accommodation: allowance to owner-occupiers in respect of certain expenditure on construction or refurbishment.
Repealed from 1 January 2002
(1)In this section –

“qualifying expenditure”, in relation to an individual, means an amount equal to the amount of the expenditure incurred by the individual in the specified period on the construction or, as the case may be, refurbishment of a qualifying premises which is a qualifying owner-occupied dwelling in relation to the individual after deducting from that amount of expenditure any sum in respect of or by reference to –
(a)that expenditure
(b)the qualifying premises, or
(c)the construction or, as the case may be, refurbishment work in respect of which that expenditure was incurred
which the individual has received or is entitled to receive, directly or indirectly, from the State, any board established by statute or any public or local authority;

“qualifying owner-occupied dwelling”, in relation to an individual, means a qualifying premises the site of which is wholly within the Custom House Docks Area and which is first used, after the qualifying expenditure has been incurred, by the individual as his or her only or main residence;

“qualifying premises”, in relation to the incurring of qualifying expenditure, means, subject to subsections (4) and (5) of section 329, a house –
(a)which is used solely as a dwelling
(b)in respect of which, if it is not a new house (for the purposes of section 4 of the Housing (Miscellaneous Provisions) Act, 1979) provided for sale, there is in force a certificate of reasonable cost the amount specified in which in respect of the cost of construction or, as the case may be, refurbishment of the house is not less than the expenditure actually incurred on such construction or refurbishment, as the case may be, and
(c)the total floor area of which –
(i)is not less than 30 square metres and not more than –
(I)125 square metres, or
(II)as respects expenditure incurred before the 12th day of April, 1995, on the construction of a house, and expenditure incurred before the 26th day of January, 1994, on the refurbishment of a house, 90 square metres
in the case where the house is a separate self-contained flat or maisonette in a building of 2 or more storeys, or
(ii)in any other case, is not less than 35 square metres and not more than 125 square metres;

“refurbishment” has the same meaning as in section 327.

(2)Where an individual, having made a claim in that behalf, proves to have incurred qualifying expenditure in a year of assessment, the individual shall be entitled, for that year of assessment and for any of the 9 subsequent years of assessment in which the qualifying premises in respect of which the individual incurred the qualifying expenditure is the only or main residence of the individual, to have a deduction made from his or her total income of an amount equal to –

(a)5 per cent of the amount of that expenditure, or

(b)in the case where the qualifying expenditure has been incurred on or after the 26th day of January, 1994, on the refurbishment of the qualifying premises, 10 per cent of the amount of that expenditure.

(2A)Where the year of assessment first mentioned in subsection (2) or any of the 9 subsequent years of assessment is the year of assessment 2001, that subsection shall apply –

(a)as if for “any of the 9 subsequent years of assessment” there were substituted “any of the 10 subsequent years of assessment”,

(b)as respects the year of assessment 2001, as if “3.7 per cent” and “7.4 per cent” were substituted for “5 per cent” and “10 per cent”, respectively, and

(c)as respects the year of assessment which is the 10th year of assessment subsequent to the year of assessment first mentioned in that subsection, as if “1.3 per cent” and “2.6 per cent” were substituted for “5 per cent” and “10 per cent”, respectively.

(3)

(a)Where the qualifying expenditure in relation to a qualifying premises is incurred by 2 or more persons, each of those persons shall be treated as having incurred only such amount of the expenditure as the inspector, to the best of his or her knowledge and judgment, considers to be just and reasonable, and the expenditure shall be apportioned accordingly.

(b)An apportionment made under paragraph (a) may be amended by the Appeal Commissioners or by the Circuit Court on the hearing or rehearing of an appeal against any deduction granted on the basis of the apportionment.

(4)Section 329 shall apply for the purposes of supplementing this section.

329. Provisions supplementary to sections 325 to 328.
Repealed from 1 January 2002
(1)In sections 325 to 328 –

“certificate of reasonable cost” means a certificate granted by the Minister for the Environment and Local Government for the purposes of section 325, 326, 327 or 328, as the case may be, stating that the amount specified in the certificate in relation to the cost of construction of, conversion into, refurbishment of, or, as the case may be, construction or refurbishment of, the house to which the certificate relates appears to that Minister at the time of the granting of the certificate and on the basis of the information available to that Minister at that time to be reasonable, and section 18 of the Housing (Miscellaneous Provisions) Act, 1979, shall, with any necessary modifications, apply to a certificate of reasonable cost as if it were a certificate of reasonable value within the meaning of that section;

“house” includes any building or part of a building used or suitable for use as a dwelling and any outoffice, yard, garden or other land appurtenant to or usually enjoyed with that building or part of a building;

“lease”, “lessee”, “lessor” and”premium” have the same meanings respectively as in Chapter 8 of Part 4;

“total floor area” means the total floor area of a house measured in the manner referred to in section 4(2)(b) of the Housing (Miscellaneous Provisions) Act, 1979.

(2)A lease shall not be a qualifying lease for the purposes of section 325, 326 or 327 if the terms of the lease contain any provision enabling the lessee or any other person, directly or indirectly, at any time to acquire any interest in the house to which the lease relates for a consideration less than that which might be expected to be given at that time for the acquisition of the interest if the negotiations for that acquisition were conducted in the open market at arm’s length.

(3)A house shall not be a qualifying premises for the purposes of section 325, 326 or 327 if –

(a)it is occupied as a dwelling by any person connected with the person entitled, in relation to the expenditure incurred on the construction of, conversion into, or, as the case may be, refurbishment of, the house, to a deduction under section 325(2), 326(4) or 327(2), as the case may be, and

(b)the terms of the qualifying lease in relation to the house are not such as might have been expected to be included in the lease if the negotiations for the lease had been at arm’s length.

(4)

(a)A house shall not be a qualifying premises for the purposes of section 325 or, in so far as it applies to expenditure other than expenditure on refurbishment, section 328 unless it complies with such conditions, if any, as may be determined by the Minister for the Environment and Local Government from time to time for the purposes of section 4 of the Housing (Miscellaneous Provisions) Act, 1979, in relation to standards of construction of houses and the provision of water, sewerage and other services in houses.

(b)A house shall not be a qualifying premises for the purposes of section 326 or 327 or, in so far as it applies to expenditure on refurbishment, section 328 unless it complies with such conditions, if any, as may be determined by the Minister for the Environment and Local Government from time to time for the purposes of section 5 of the Housing (Miscellaneous Provisions) Act, 1979, in relation to standards for improvements of houses and the provision of water, sewerage and other services in houses.

(5)A house shall not be a qualifying premises for the purposes of section 325, 326, 327 or 328 unless persons authorised in writing by the Minister for the Environment and Local Government for the purposes of those sections are permitted to inspect the house at all reasonable times on production, if so requested by a person affected, of their authorisations.

(6)For the purposes of sections 325 to 328, references in those sections to the construction of, conversion into, refurbishment of, or, as the case may be, construction or refurbishment of, any premises shall be construed as including references to the development of the land on which the premises is situated or which is used in the provision of gardens, grounds, access or amenities in relation to the premises and, without prejudice to the generality of the foregoing, as including in particular –

(a)demolition or dismantling of any building on the land,

(b)site clearance, earth moving, excavation, tunnelling and boring, laying of foundations, erection of scaffolding, site restoration, landscaping and the provision of roadways and other access works,

(c)walls, power supply, drainage, sanitation and water supply, and

(d)the construction of any outhouses or other buildings or structures for use by the occupants of the premises or for use in the provision of amenities for the occupants.

(7)

(a)For the purposes of determining, in relation to any claim under section 325(2), 326(4), 327(2) or 328(2), as the case may be, whether and to what extent expenditure incurred on the construction of, conversion into, refurbishment of, or, as the case may be, construction or refurbishment of, a qualifying premises is incurred or not incurred during the qualifying period or, as the case may be, during the specified period, only such an amount of that expenditure as is determined by the inspector, according to the best of his or her knowledge and judgment, to be properly attributable to work on the construction of, conversion into, refurbishment of, or, as the case may be, construction or refurbishment of, the premises which was actually carried out during the qualifying period or, as the case may be, during the specified period shall be treated as having been incurred during that period.

(b)Where by virtue of subsection (6) expenditure on the construction of, conversion into, refurbishment of, or, as the case may be, construction or refurbishment of, a qualifying premises includes expenditure on the development of any land, paragraph (a) shall apply with any necessary modifications as if the references in that paragraph to the construction of, conversion into, refurbishment of, or, as the case may be, construction or refurbishment of, the qualifying premises were references to the development of such land.

(c)Any amount which by virtue of paragraph (a) or (b) is determined by the inspector may be amended by the Appeal Commissioners or by the Circuit Court on the hearing or the rehearing of an appeal against that determination.

(8)

(a)Any apportionment required by section 325(4), 326(6) or 327(4) shall be made by the inspector according to the best of his or her knowledge and judgment.

(b)Any apportionment made under section 325(4), 326(6) or 327(4) may be amended by the Appeal Commissioners or by the Circuit Court on the hearing or the rehearing of an appeal against any deduction granted on the basis of the apportionment.

(9)

(a)For the purposes of sections 325 and 326 other than the purposes mentioned in subsection (7)(a), expenditure incurred on the construction of, or, as the case may be, conversion into, a qualifying premises shall be deemed to have been incurred on the date of the first letting of the premises under a qualifying lease.

(b)For the purposes of section 327 other than the purposes mentioned in subsection (7)(a), relevant expenditure incurred in relation to the refurbishment of a qualifying premises shall be deemed to have been incurred on the date of the commencement of the relevant period in relation to the premises, determined as respects the refurbishment to which the relevant expenditure relates.

(c)For the purposes of section 328 other than the purposes mentioned in subsection (7)(a), expenditure incurred on the construction or refurbishment of a qualifying premises shall be deemed to have been incurred on the earliest date after the expenditure was actually incurred on which the premises is in use as a dwelling.

(10)For the purposes of sections 326 and 327, expenditure shall not be regarded as incurred by a person in so far as it has been or is to be met, directly or indirectly, by the State, by any board established by statute or by any public or local authority.

(11)Section 555 shall apply as if a deduction under section 325(2), 326(4) or 327(2), as the case may be, were a capital allowance and as if any rent deemed to have been received by a person under section 325(5), 326(7) or 327(5), as the case may be, were a balancing charge.

(12)An appeal to the Appeal Commissioners shall lie on any question arising under this section or under section 325, 326, 327 or 328 (other than a question on which an appeal lies under section 18 of the Housing (Miscellaneous Provisions) Act, 1979) in the like manner as an appeal would lie against an assessment to income tax or corporation tax, and the provisions of the Tax Acts relating to appeals shall apply accordingly.

Chapter 2 Temple Bar Area (ss. 330-338)

330. Interpretation (Chapter 2).
(1)In this Chapter –

“qualifying period” means the period commencing –
(a)for the purposes of any provision of this Chapter other than section 334, 335 or 336, the 6th day of April, 1991, or
(b)for the purposes of sections 334 to 336, the 30th day of January, 1991,
and ending on –
(i)the 5th day of April, 1999, or
(ii)the 31st day of December, 1999, where, in relation to the construction of, conversion into, refurbishment of, or, as the case may be, construction or refurbishment of a house which is a qualifying premises within the meaning of section 334, 335, 336 or 337, the corporation of the country borough of Dublin gives a certificate in writing, on or before the 31st day of July, 1999, to the person constructing, converting or refurbishing, as the case may be, the house stating that it is satisfied that not less than 50 per cent of the total cost of the house and the site thereof had been incurred on or before the 5th day of April, 1999;

“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, which is consistent with the original character or fabric of the building or structure;

“the Temple Bar Area” means the area described in paragraph 2 of Schedule 6.

(2)The provisions specified in this Chapter as applying in relation to capital or other expenditure incurred or rent payable in relation to any building or premises (however described in this Chapter) in the Temple Bar Area shall apply only if the relevant building or premises, in relation to which that capital or other expenditure was incurred or rent is so payable, is approved for the purposes of this Chapter by the company known as Temple Bar Renewal Limited.

(3)Notwithstanding any other provision of the Tax Acts, where part of a building or structure is used for commercial purposes and part is used for residential purposes, the total amount of the expenditure incurred on the construction or refurbishment of the building or structure shall be apportioned as between the respective parts of the building or structure in such manner as is just and reasonable for the purpose of giving effect to this Chapter.

(4)Schedule 6 shall apply for the purposes of supplementing this Chapter.

331. Accelerated capital allowances in relation to construction or refurbishment of certain industrial buildings or structures.
(1)This section shall apply to a building or structure –

(a)which is –

(i)constructed in the Temple Bar Area in the qualifying period, or

(ii)an existing building or structure in the Temple Bar Area as on the 1st day of January, 1991, and is the subject of refurbishment in the qualifying period,

and

(b)which is to be an industrial building or structure by reason of its use for a purpose specified in paragraph (a) or (d) of section 268(1).

(2)Section 271 shall apply in relation to capital expenditure incurred in the qualifying period on the construction or refurbishment of a building or structure to which this section applies as if –

(a)in subsection (1) of that section the definition of “industrial development agency” were deleted,

(b)in subsection (2)(a)(i) of that section “to which subsection (3) applies” were deleted,

(c)subsections (3) and (5) of that section were deleted, and

(d)

(i)in the case where the capital expenditure is incurred on the construction of the building or structure, the following subsection were substituted for subsection (4) of that section:

“(4)An industrial building allowance shall be of an amount equal to 25 per cent of the capital expenditure mentioned in subsection (2).”,

and

(ii)in the case where the capital expenditure is incurred on the refurbishment of the building or structure, the following subsection were substituted for subsection (4) of that section:

“(4)An industrial building allowance shall be of an amount equal to 50 per cent of the capital expenditure mentioned in subsection (2).”.

(3)Section 273 shall apply in relation to capital expenditure incurred in the qualifying period on the construction or refurbishment of a building or structure to which this section applies –

(a)in the case where the capital expenditure is incurred on the construction of the building or structure as if –

(i)in subsection (1) of that section the definition of “industrial development agency” were deleted,

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

“(b)As respects any qualifying expenditure, 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 50 per cent of the amount of that qualifying expenditure.”,

and

(iii)subsections (3) to (7) of that section were deleted,

and

(b)in the case where the capital expenditure is incurred on the refurbishment of the building or structure as if –

(i)in subsection (1) of that section the definition of “industrial development agency” were deleted, and

(ii)subsections (2)(b) and (3) to (7) of that section were deleted.

(4)For the purposes of this section, where capital expenditure is incurred in the qualifying period on the refurbishment of a building or structure to which this section applies, such expenditure shall be deemed to include the lesser of –

(a)any expenditure incurred on the purchase of the building or structure, other than expenditure incurred on the acquisition of, or of rights in or over, any land, and

(b)an amount which is equal to the value of the building or structure on the 1st day of January, 1991, other than any amount of such value as is attributable to, or to rights in or over, any land,

if the expenditure referred to in paragraph (a) or the amount referred to in paragraph (b), as the case may be, is not greater than the amount of the capital expenditure actually incurred in the qualifying period on the refurbishment of the building or structure.

(5)Notwithstanding section 274(1), in the case of a building or structure to which this section applies by reason of its use for a purpose specified in section 268(1)(a), no balancing charge shall be made by reason of any of the events specified in section 274(1) which occurs –

(a)more than 13 years after the building or structure was first used, or

(b)in a case where section 276 applies, more than 13 years after the capital expenditure on refurbishment of the building or structure was incurred.

(6)For the purposes only of determining, in relation to a claim for an allowance under section 271 or 273 as applied by this section, whether and to what extent capital expenditure incurred on the construction or refurbishment of an industrial building or structure is incurred or not incurred in the qualifying period, only such an amount of that capital expenditure as is properly attributable to work on the construction or, as the case may be, refurbishment of the building or structure actually carried out during the qualifying period shall (notwithstanding 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; but nothing in this subsection shall affect the operation of subsection (4).

(7)Where, in relation to capital expenditure incurred in the qualifying period on the construction or refurbishment of a building or structure to which this section applies, any allowance or charge has been made under the provisions of the Tax Acts relating to the making of allowances and charges in respect of capital expenditure incurred on the construction or refurbishment of an industrial building or structure by virtue of section 42 of the Finance Act, 1986, as applied by section 55 of the Finance Act, 1991, that allowance or charge shall be deemed to have been made under those provisions by virtue of this section.

332. Capital allowances in relation to construction or refurbishment of certain commercial premises.
(1)In this section –

“multi-storey car park” means a building or structure consisting of 3 or more storeys wholly or mainly in use for the purpose of providing, for members of the public generally without preference for any particular class of person, on payment of an appropriate charge, parking space for mechanically propelled vehicles;

“qualifying premises” means a building or structure which –

(a)

(i)is constructed in the Temple Bar Area in the qualifying period, or

(ii)is an existing building or structure in the Temple Bar Area as on the 1st day of January, 1991, and is the subject of refurbishment in the qualifying period,

(b)apart from this section is not an industrial building or structure within the meaning of section 268, and

(c)

(i)is in use for the purposes of a trade or profession, or

but does not include any part of a building or structure in use as or as part of a dwelling house.

(2)

(a)Subject to subsections (3) to (8), the provisions of the Tax Acts relating to the making of allowances or charges in respect of capital expenditure incurred on the construction or refurbishment of an industrial building or structure shall, notwithstanding anything to the contrary in those provisions, apply –

(ii)where any activity carried on in the qualifying premises is not a trade, as if it were a trade.

(b)An allowance shall be given by virtue of this subsection in respect of any capital expenditure incurred on the construction or refurbishment of a qualifying premises only in so far as that expenditure is incurred in the qualifying period.

(3)Section 271 shall apply in relation to capital expenditure incurred in the qualifying period on the construction or refurbishment of a qualifying premises as if –

(a)in subsection (1) of that section the definition of “industrial development agency” were deleted,

(b)in subsection (2)(a)(i) of that section “to which subsection (3) applies” were deleted,

(c)subsections (3) and (5) of that section were deleted, and

(d)the following subsection were substituted for subsection (4) of that section:

“(4)An industrial building allowance shall be of an amount equal to 50 per cent of the capital expenditure mentioned in subsection (2).”.

(4)Section 273 shall apply in relation to capital expenditure incurred in the qualifying period on the construction or refurbishment of a qualifying premises as if –

(a)in subsection (1) of that section the definition of “industrial development agency” were deleted, and

(b)subsections (2)(b) and (3) to (7) of that section were deleted.

(5)For the purposes of this section, where capital expenditure is incurred in the qualifying period on the refurbishment of a qualifying premises, such expenditure shall be deemed to include the lesser of –

(a)any expenditure incurred on the purchase of the building or structure, other than expenditure incurred on the acquisition of, or of rights in or over, any land, and

(b)an amount which is equal to the value of the building or structure as on the 1st day of January, 1991, other than any amount of such value as is attributable to, or to rights in or over, any land,

(6)Notwithstanding section 274(1), no balancing charge shall be made in relation to a qualifying premises by reason of any of the events specified in that section which occurs –

(a)more than 13 years after the qualifying premises was first used, or

(b)in a case where section 276 applies, more than 13 years after the capital expenditure on refurbishment of the qualifying premises was incurred.

(7)

(a)Notwithstanding subsections (2) to (4), any allowance or charge which apart from this subsection would be made by virtue of subsection (2) in respect of capital expenditure incurred on the construction of a qualifying premises, other than a qualifying premises which is a multi-storey car park, shall be reduced to one-half of the amount which apart from this subsection would be the amount of that allowance or charge.

(b)For the purposes of paragraph (a), the amount of an allowance or charge to be reduced to one-half shall be computed as if –

(i)this subsection had not been enacted, and

(ii)effect had been given to all allowances taken into account in so computing that amount.

(c)Nothing in this subsection shall affect the operation of section 274(8).

(8)For the purposes only of determining, in relation to a claim for an allowance by virtue of subsection (2), whether and to what extent capital expenditure incurred on the construction or refurbishment of a qualifying premises is incurred or not incurred in the qualifying period, only such an amount of that capital expenditure as is properly attributable to work on the construction or, as the case may be, refurbishment of the premises actually carried out during the qualifying period shall (notwithstanding 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; but nothing in this subsection shall affect the operation of subsection (5).

(9)Where, in relation to capital expenditure incurred in the qualifying period on the construction or refurbishment of a qualifying premises, any allowance or charge has been made under the provisions of the Tax Acts relating to the making of allowances and charges in respect of capital expenditure incurred on the construction or refurbishment of an industrial building or structure by virtue of section 42 of the Finance Act, 1986, as applied by section 55 of the Finance Act, 1991, that allowance or charge shall be deemed to have been made under those provisions by virtue of this section.

333. Double rent allowance in respect of rent paid for certain business premises.
(1)

(a)In this section –

“lease”, “lessee”, “lessor” and “rent” have the same meanings respectively as in Chapter 8 of Part 4;

“qualifying lease” means, subject to subsection (4), a lease in respect of a qualifying premises granted in the qualifying period, or granted in any subsequent period ending on or before 31 December 1999, on bona fide commercial terms by a lessor to a lessee not connected with the lessor, or with any other person entitled to a rent in respect of the qualifying premises, whether under that lease or any other lease;

“qualifying premises” means a building or structure in the Temple Bar Area –

(i)

(I)which is an industrial building or structure within the meaning of section 268(1), and in respect of which capital expenditure is incurred in the qualifying period for which an allowance is to be made for the purposes of income tax or corporation tax, as the case may be, under Chapter 1 of Part 9, or

(II)in respect of which an allowance is to be made, or, as respects rent payable under a qualifying lease entered into on or after the 18th day of April, 1991, will by virtue of section 279 be made, for the purposes of income tax or corporation tax, as the case may be, under Chapter 1 of Part 9 by virtue of section 332, and

(ii)which is let on bona fide commercial terms for such consideration as might be expected to be paid in a letting of the building or structure negotiated on an arm’s length basis,

but, as respects rent payable under a qualifying lease entered into on or after the 6th day of May, 1993, where capital expenditure is incurred in the qualifying period 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 Chapter 1 of Part 9, the building or structure shall not be regarded as a qualifying premises unless the total amount of the expenditure so incurred is not less than an amount equal to 10 per cent of the market value of the building or structure immediately before that expenditure is incurred.

(i)10 years, or

(ii)the period by which 10 years exceeds –

(I)any preceding period, or

(II)if there is more than one preceding period, the aggregate of those periods,

for which rent was payable –

(A)by that person or any other person, or

(B)as respects rent payable in relation to any qualifying premises under a qualifying lease entered into before the 11th day of April, 1994, by that person or any person connected with that person,

in relation to that premises under a qualifying lease.

(a)for a relevant rental period, or

(b)as respects rent payable in relation to any qualifying premises under a qualifying lease entered into before the 18th day of April, 1991, in the relevant rental period,

(3)Where a person holds an interest in a qualifying premises out of which interest a qualifying lease is created directly or indirectly in respect of that qualifying premises and in respect of rent payable under the qualifying lease a claim for a further deduction under this section is made, and such person or, as respects rent payable in relation to any qualifying premises under a qualifying lease entered into on or after the 6th day of May, 1993, either such person or another person connected with such person –

(4)

(a)In this subsection –

“current value”, in relation to minimum lease payments, means the value of those payments discounted to their present value at a rate which, when applied at the inception of the lease to –

(i)those payments, including any initial payment but excluding any payment or part of any payment for which the lessor will be accountable to the lessee, and

(ii)any unguaranteed residual value of the qualifying premises, excluding any part of such value for which the lessor will be accountable to the lessee,

produces discounted present values the aggregate amount of which equals the amount of the fair value of the qualifying premises;

“inception of the lease” means the earlier of the time the qualifying premises is brought into use or the date from which rentals under the lease first accrue;

(b)A finance lease, that is –

shall not be a qualifying lease for the purposes of this section.

(5)In determining whether a period is a relevant rental period for the purposes of this section, rent payable by any person in relation to a premises in respect of which a further deduction was given under section 45 of the Finance Act, 1986, as applied by section 55 of the Finance Act, 1991 (or would have been so given but for the operation of paragraph (b) of the proviso to subsection (2) of section 45 of the Finance Act, 1986), shall be treated as having been payable by that person in relation to the premises under a qualifying lease.

334. Rented residential accommodation: deduction for certain expenditure on construction.
Repealed from 1 January 2002
(1)In this section –

“qualifying lease”, in relation to a house, means, subject to section 338(2), a lease of the house the consideration for the grant of which consists –

(a)solely of periodic payments all of which are or are to be treated as rent for the purposes of Chapter 8 of Part 4, or

(b)of payments of the kind mentioned in paragraph (a), together with a payment by means of a premium which does not exceed 10 per cent of the relevant cost of the house;

“qualifying premises” means, subject to subsections (3), (4)(a) and (5) of section 338, a house in the Temple Bar Area –

(a)which is used solely as a dwelling,

(b)the total floor area of which –

(i)is not less than 30 square metres and not more than –

(I)125 square metres, or

(II)as respects expenditure incurred before the 12th day of April, 1995, 90 square metres,

in the case where the house is a separate self-contained flat or maisonette in a building of 2 or more storeys, or

(ii)in any other case, is not less than 35 square metres and not more than 125 square metres,

(c)in respect of which, if it is not a new house (for the purposes of section 4 of the Housing (Miscellaneous Provisions) Act, 1979) provided for sale, there is in force a certificate of reasonable cost, the amount specified in which in respect of the cost of construction of the house is not less than the expenditure actually incurred on such construction, and

(d)which without having been used is first let in its entirety under a qualifying lease and thereafter throughout the remainder of the relevant period (except for reasonable periods of temporary disuse between the ending of one qualifying lease and the commencement of another such lease) continues to be let under such a lease;

“relevant cost”, in relation to a house, means, subject to subsection (3), an amount equal to the aggregate of –

(a)the expenditure incurred on the acquisition of, or of rights in or over, any land on which the house is constructed, and

(b)the expenditure actually incurred on the construction of the house;

“relevant period”, in relation to a qualifying premises, means the period of 10 years beginning on the date of the first letting of the premises under a qualifying lease.

(2)Subject to subsection (3), where a person, having made a claim in that behalf, proves to have incurred expenditure on the construction of a qualifying premises –

(a)such person shall be entitled, in computing for the purposes of section 97(1) the amount of a surplus or deficiency in respect of the rent from the qualifying premises, to a deduction of so much (if any) of that expenditure as is to be treated under section 338(7) or under this section as having been incurred by such person in the qualifying period, and

(b)Chapter 8 of Part 4 shall apply as if that deduction were a deduction authorised by section 97(2).

(3)

(i)the amount of such premium or such other sum or, as the case may be, that part of such premium or such other sum, and

(ii)the amount which bears to the amount mentioned in subparagraph (i) the same proportion as the amount of the expenditure actually incurred on the construction of the qualifying premises which is to be treated under section 338(7) as having been incurred in the qualifying period bears to the whole of the expenditure incurred on that construction.

(a)of the expenditure incurred on the construction of that building or those buildings, and

(b)of the amount which would be the relevant cost in relation to that building or those buildings if the building or buildings, as the case may be, were a single qualifying premises,

for the purposes of determining the expenditure incurred on the construction of the qualifying premises and the relevant cost in relation to the qualifying premises.

(5)Where a house is a qualifying premises and at any time during the relevant period in relation to the premises either of the following events occurs –

(a)the house ceases to be a qualifying premises, or

(b)the ownership of the lessor’s interest in the house passes to any other person but the house does not cease to be a qualifying premises,

(6)

(a)Where the event mentioned in subsection (5)(b) occurs in the relevant period in relation to a house which is a qualifying premises, the person to whom the ownership of the lessor’s interest in the house passes shall be treated for the purposes of this section as having incurred in the qualifying period an amount of expenditure on the construction of the house equal to the amount which under section 338(7) or under this section (apart from subsection (3)(b)) the lessor was treated as having incurred in the qualifying period on the construction of the house; but, in the case of a person who purchases such a house, the amount so treated as having been incurred by such person shall not exceed the relevant price paid by such person on the purchase.

(b)For the purposes of this subsection and subsection (7), the relevant price paid by a person on the purchase of a house shall be the amount which bears to the net price paid by such person on that purchase the same proportion as the amount of the expenditure actually incurred on the construction of the house which is to be treated under section 338(7) as having been incurred in the qualifying period bears to the relevant cost in relation to that house.

(7)

(i)the amount of such expenditure which is to be treated under section 338(7) as having been incurred in the qualifying period, and

(ii)the relevant price paid by such person on the purchase;

but, where the house is sold more than once before it is used, this subsection shall apply only in relation to the last of those sales.

(8)This section shall apply as if a deduction given to a person under section 23 of the Finance Act, 1981, as applied by section 56 of the Finance Act, 1991 (in so far as it applied in relation to the Temple Bar Area), were a deduction given to such person under this section in respect of expenditure incurred in the qualifying period on the construction of a qualifying premises.

(9)Section 338 shall apply for the purposes of supplementing this section.

335. Rented residential accommodation: deduction for certain expenditure on conversion.
Repealed from 1 January 2002
(1)In this section –

“conversion expenditure” means, subject to subsection (2), expenditure incurred on –

(a)refurbishment in the course of the conversion into a house of a building in the Temple Bar Area which has not been previously in use as a dwelling, and

(b)refurbishment in the course of the conversion into 2 or more houses of a building in the Temple Bar Area which before the conversion had not been in use as a dwelling or had been in use as a single dwelling,

and references in this section and in section 338 to “conversion”, “conversion into a house” and “expenditure incurred on conversion” shall be construed accordingly;

“qualifying lease”, in relation to a house, means, subject to section 338(2), a lease of the house the consideration for the grant of which consists –

(a)solely of periodic payments all of which are or are to be treated as rent for the purposes of Chapter 8 of Part 4, or

(b)of payments of the kind mentioned in paragraph (a), together with a payment by means of a premium which does not exceed 10 per cent of the market value of the house at the time the conversion is completed and, in the case of a house which is a part of a building and is not saleable apart from the building of which it is a part, the market value of the house at the time the conversion is completed shall for the purposes of this paragraph be taken to be an amount which bears to the market value of the building at that time the same proportion as the total floor area of the house bears to the total floor area of the building;

“qualifying premises” means, subject to subsections (3), (4)(b) and (5) of section 338, a house –

(a)which is used solely as a dwelling,

(b)the total floor area of which –

(i)is not less than 30 square metres and not more than –

(I)125 square metres, or

(II)as respects expenditure incurred before the 26th day of January, 1994, 90 square metres,

in the case where the house is a separate self-contained flat or maisonette in a building of 2 or more storeys, or

(ii)in any other case, is not less than 35 square metres and not more than 125 square metres,

(c)in respect of which there is in force a certificate of reasonable cost the amount specified in which in respect of the cost of conversion in relation to the house is not less than the expenditure actually incurred on such conversion, and

(d)which without having been used subsequent to the incurring of the expenditure on the conversion is first let in its entirety under a qualifying lease and thereafter throughout the remainder of the relevant period (except for reasonable periods of temporary disuse between the ending of one qualifying lease and the commencement of another such lease) continues to be let under such a lease;

“relevant period”, in relation to a qualifying premises, means the period of 10 years beginning on the date of the first letting of the premises under a qualifying lease.

(a)the carrying out of any works of construction, reconstruction, repair or renewal, and

(b)the provision or improvement of water, sewerage or heating facilities,

in relation to the building or any outoffice appurtenant to or usually enjoyed with the building, but shall not be deemed to include –

(i)any expenditure in respect of which any person is entitled to a deduction, relief or allowance under any other provision of the Tax Acts, or

(ii)any expenditure attributable to any part (in this section referred to as a “non-residential unit”) of the building which on completion of the conversion is not a house.

(4)Subject to subsection (5), where a person, having made a claim in that behalf, proves to have incurred conversion expenditure in relation to a house which is a qualifying premises –

(a)such person shall be entitled, in computing for the purposes of section 97(1) the amount of a surplus or deficiency in respect of the rent from the qualifying premises, to a deduction of so much (if any) of the expenditure as is to be treated under section 338(7) or under this section as having been incurred by such person in the qualifying period, and

(b)Chapter 8 of Part 4 shall apply as if that deduction were a deduction authorised by section 97(2).

(5)

(i)the amount of such premium or such other sum or, as the case may be, that part of such premium or such other sum, and

(ii)the amount which bears to the amount mentioned in subparagraph (i) the same proportion as the amount of the conversion expenditure actually incurred in relation to the qualifying premises which is to be treated under section 338(7) as having been incurred in the qualifying period bears to the whole of the conversion expenditure incurred in relation to the qualifying premises.

(7)Where a house is a qualifying premises and at any time during the relevant period in relation to the premises either of the following events occurs –

(a)the house ceases to be a qualifying premises, or

(b)the ownership of the lessor’s interest in the house passes to any other person but the house does not cease to be a qualifying premises,

(8)Where the event mentioned in subsection (7)(b) occurs in the relevant period in relation to a house which is a qualifying premises, the person to whom the ownership of the lessor’s interest in the house passes shall be treated for the purposes of this section as having incurred in the qualifying period an amount of conversion expenditure in relation to the house equal to the amount of the conversion expenditure which under section 338(7) or under this section (apart from subsection (5)(b)) the lessor was treated as having incurred in the qualifying period in relation to the house; but, in the case of a person who purchases such a house, the amount so treated as having been incurred by such person shall not exceed –

(a)the net price paid by such person on the purchase, or

(b)in case only a part of the conversion expenditure incurred in relation to the house is to be treated under section 338(7) as having been incurred in the qualifying period, the amount which bears to that net price the same proportion as that part bears to the whole of the conversion expenditure incurred in relation to the house.

(a)the amount of such expenditure which is to be treated under section 338(7) as having been incurred in the qualifying period, and

(b)

(i)the net price paid by such person on the purchase, or

(ii)in case only a part of the conversion expenditure incurred in relation to the house is to be treated under section 338(7) as having been incurred in the qualifying period, the amount which bears to that net price the same proportion as that part bears to the whole of the conversion expenditure incurred in relation to the house;

(11)This section shall apply as if a deduction given to a person under section 23 of the Finance Act, 1981, by virtue of section 24 of that Act or section 22 of the Finance Act, 1985, as respectively applied by sections 56 and 58 of the Finance Act, 1991 (in so far as those sections applied to the Temple Bar Area), were a deduction given to such person under this section in respect of conversion expenditure incurred in the qualifying period in relation to a house which is a qualifying premises.

(12)Section 338 shall apply for the purposes of supplementing this section.

336. Rented residential accommodation: deduction for certain expenditure on refurbishment.
Repealed from 1 January 2002
(1)In this section –

“qualifying lease”, in relation to a house, means, subject to section 338(2), a lease of the house the consideration for the grant of which consists –

(a)solely of periodic payments all of which are or are to be treated as rent for the purposes of Chapter 8 of Part 4, or

(b)of payments of the kind mentioned in paragraph (a), together with a payment by means of a premium –

(i)which is payable on or subsequent to the date of the completion of the refurbishment to which the relevant expenditure relates or which, if payable before that date, is so payable by reason of or otherwise in connection with the carrying out of the refurbishment, and

(ii)which does not exceed 10 per cent of the market value of the house on the date of completion of the refurbishment to which the relevant expenditure relates and, in the case of a house which is a part of a building and is not saleable apart from the building of which it is a part, the market value of the house on that date shall for the purposes of this subparagraph be taken to be an amount which bears to the market value of the building on that date the same proportion as the total floor area of the house bears to the total floor area of the building;

“qualifying premises” means, subject to subsections (3), (4)(b) and (5) of section 338, a house –

(a)which is used solely as a dwelling,

(b)the total floor area of which –

(i)is not less than 30 square metres and not more than –

(I)125 square metres, or

(II)as respects expenditure incurred before the 26th day of January, 1994, 90 square metres,

in the case where the house is a separate self-contained flat or maisonette in a building of 2 or more storeys, or

(ii)in any other case, is not less than 35 square metres and not more than 125 square metres,

(c)in respect of which there is in force a certificate of reasonable cost the amount specified in which in respect of the cost of refurbishment in relation to the house is not less than the relevant expenditure actually incurred on such refurbishment, and

(d)which on the date of completion of the refurbishment to which the relevant expenditure relates is let (or, if not let on that date, is, without having been used after that date, first let) in its entirety under a qualifying lease and thereafter throughout the remainder of the relevant period (except for reasonable periods of temporary disuse between the ending of one qualifying lease and the commencement of another such lease) continues to be let under such a lease;

“relevant expenditure” means expenditure incurred on the refurbishment of a specified building, other than expenditure attributable to any part (in this section referred to as a “non-residential unit”) of the building which on completion of the refurbishment is not a house, and for the purposes of this definition where expenditure is attributable to the specified building in general (and not directly to any particular house or non-residential unit comprised in the building on completion of the refurbishment), such an amount of that expenditure shall be deemed to be attributable to a non-residential unit as bears to the whole of that expenditure the same proportion as the total floor area of the non-residential unit bears to the total floor area of the building;

“relevant period”, in relation to a qualifying premises, means the period of 10 years beginning on the date of the completion of the refurbishment to which the relevant expenditure relates or, if the premises was not let under a qualifying lease on that date, the period of 10 years beginning on the date of the first such letting after the date of such completion;

“specified building” means a building in the Temple Bar Area –

(a)in which before the refurbishment to which the relevant expenditure relates there are 2 or more houses, and

(b)which on completion of that refurbishment contains (whether in addition to any non-residential unit or not) 2 or more houses.

(2)Subject to subsection (3), where a person, having made a claim in that behalf, proves to have incurred relevant expenditure in relation to a house which is a qualifying premises –

(a)such person shall be entitled, in computing for the purposes of section 97(1) the amount of a surplus or deficiency in respect of the rent from the qualifying premises, to a deduction of so much (if any) of the expenditure as is to be treated under section 338(7) or under this section as having been incurred by such person in the qualifying period, and

(b)Chapter 8 of Part 4 shall apply as if that deduction were a deduction authorised by section 97(2).

(3)

(a)This subsection shall apply to any premium or other sum which –

(i)the amount of such premium or such other sum or, as the case may be, that part of such premium or such other sum, and

(ii)the amount which bears to the amount mentioned in subparagraph (i) the same proportion as the amount of the relevant expenditure actually incurred in relation to the qualifying premises which is to be treated under section 338(7) as having been incurred in the qualifying period bears to the whole of the relevant expenditure incurred in relation to the qualifying premises.

(5)Where a house is a qualifying premises and at any time during the relevant period in relation to the premises either of the following events occurs –

(a)the house ceases to be a qualifying premises, or

(b)the ownership of the lessor’s interest in the house passes to any other person but the house does not cease to be a qualifying premises,

(6)Where the event mentioned in subsection (5)(b) occurs in the relevant period in relation to a house which is a qualifying premises, the person to whom the ownership of the lessor’s interest in the house passes shall be treated for the purposes of this section as having incurred in the qualifying period an amount of relevant expenditure in relation to the house equal to the amount of the relevant expenditure which under section 338(7) or under this section (apart from subsection (3)(b)) the lessor was treated as having incurred in the qualifying period in relation to the house; but, in the case of a person who purchases such a house, the amount so treated as having been incurred by such person shall not exceed –

(a)the net price paid by such person on the purchase, or

(b)in case only a part of the relevant expenditure incurred in relation to the house is to be treated under section 338(7) as having been incurred in the qualifying period, the amount which bears to that net price the same proportion as that part bears to the whole of the relevant expenditure incurred in relation to the house.

(a)the amount of such expenditure which is to be treated under section 338(7) as having been incurred in the qualifying period, and

(b)

(i)the net price paid by such person on the purchase, or

(ii)in case only a part of the relevant expenditure incurred in relation to the house is to be treated under section 338(7) as having been incurred in the qualifying period, the amount which bears to that net price the same proportion as that part bears to the whole of the relevant expenditure incurred in relation to the house;

(10)This section shall apply as if a deduction given to a person under section 23 of the Finance Act, 1981, by virtue of section 21 of the Finance Act, 1985, as applied by section 57 of the Finance Act, 1991 (in so far as that section applied to the Temple Bar Area), were a deduction given to such person under this section in respect of relevant expenditure incurred in the qualifying period in relation to a house which is a qualifying premises.

(11)Section 338 shall apply for the purposes of supplementing this section.

337. Residential accommodation: allowance to owner-occupiers in respect of certain expenditure on construction or refurbishment.
Repealed from 1 January 2002
(1)In this section –

“qualifying expenditure”, in relation to an individual, means an amount equal to the amount of the expenditure incurred by the individual in the qualifying period on the construction or, as the case may be, refurbishment of a qualifying premises which is a qualifying owner-occupied dwelling in relation to the individual after deducting from that amount of expenditure any sum in respect of or by reference to –

(a)that expenditure,

(b)the qualifying premises, or

(c)the construction or, as the case may be, refurbishment work in respect of which that expenditure was incurred,

which the individual has received or is entitled to receive, directly or indirectly, from the State, any board established by statute or any public or local authority;

“qualifying owner-occupied dwelling”, in relation to an individual, means a qualifying premises which is wholly within the Temple Bar Area and is first used, after the qualifying expenditure has been incurred, by the individual as his or her only or main residence;

“qualifying premises”, in relation to the incurring of qualifying expenditure, means, subject to subsections (4) and (5) of section 338, a house –

(a)which is used solely as a dwelling,

(b)in respect of which, if it is not a new house (for the purposes of section 4 of the Housing (Miscellaneous Provisions) Act, 1979) provided for sale, there is in force a certificate of reasonable cost the amount specified in which in respect of the cost of construction or, as the case may be, refurbishment of the house is not less than the expenditure actually incurred on such construction or refurbishment, as the case may be, and

(c)the total floor area of which –

(i)is not less than 30 square metres and not more than –

(I)125 square metres, or

(II)as respects expenditure incurred before the 12th day of April, 1995, on the construction of a house, and expenditure incurred before the 26th day of January, 1994, on the refurbishment of a house, 90 square metres,

in the case where the house is a separate self-contained flat or maisonette in a building of 2 or more storeys, or

(ii)in any other case, is not less than 35 square metres and not more than 125 square metres.

(2)Where an individual, having made a claim in that behalf, proves to have incurred qualifying expenditure in a year of assessment, the individual shall be entitled, for that year of assessment and for any of the 9 subsequent years of assessment in which the qualifying premises in respect of which the expenditure was incurred is the only or main residence of the individual, to have a deduction made from his or her total income of an amount equal to –

(a)in the case where the qualifying expenditure has been incurred on the construction of the qualifying premises, 5 per cent of the amount of that expenditure, or

(b)in the case where the qualifying expenditure has been incurred on the refurbishment of the qualifying premises, 10 per cent of the amount of that expenditure.

(2A)Where the year of assessment first mentioned in subsection (2) or any of the 9 subsequent years of assessment is the year of assessment 2001, that subsection shall apply –

(a)as if for “any of the 9 subsequent years of assessment” there were substituted “any of the 10 subsequent years of assessment”,

(b)as respects the year of assessment 2001, as if “3.7 per cent” and “7.4 per cent” were substituted for “5 per cent” and “10 per cent”, respectively, and

(3)For the purposes of this section, where qualifying expenditure is incurred in the qualifying period on the refurbishment of a qualifying premises, such expenditure shall be deemed to include the lesser of –

(a)any expenditure incurred on the purchase of the qualifying premises, other than expenditure incurred on the acquisition of, or of rights in or over, any land, and

(b)an amount equal to the value of the qualifying premises as on the 1st day of January, 1991, other than any amount of such value as is attributable to, or to rights in or over, any land,

if the expenditure referred to in paragraph (a) or the amount referred to in paragraph (b), as the case may be, is not greater than the amount of the qualifying expenditure actually incurred in the qualifying period on the refurbishment of the qualifying premises.

(4)Where the qualifying expenditure in relation to a qualifying premises is incurred by 2 or more persons, each of those persons shall be treated as having incurred the expenditure in the proportions in which they actually bore the expenditure, and the expenditure shall be apportioned accordingly.

(5)This section shall apply as if a deduction given to an individual for any year of assessment under section 44 of the Finance Act, 1986, as applied by section 55 of the Finance Act, 1991, were a deduction given to the individual under this section in respect of qualifying expenditure.

(6)Section 338 shall apply for the purposes of supplementing this section.

338. Provisions supplementary to sections 334 to 337.
Repealed from 1 January 2002
(1)In sections 334 to 337 –

“certificate of reasonable cost” means a certificate granted by the Minister for the Environment and Local Government for the purposes of section 334, 335, 336 or 337, as the case may be, stating that the amount specified in the certificate in relation to the cost of construction of, conversion into, refurbishment of, or, as the case may be, construction or refurbishment of, the house to which the certificate relates appears to that Minister at the time of the granting of the certificate and on the basis of the information available to that Minister at that time to be reasonable, and section 18 of the Housing (Miscellaneous Provisions) Act, 1979, shall, with any necessary modifications, apply to a certificate of reasonable cost as if it were a certificate of reasonable value within the meaning of that section;

“lease”, “lessee”, “lessor”, “premium” and “rent” have the same meanings respectively as in Chapter 8 of Part 4;

“total floor area” means the total floor area of a house measured in the manner referred to in section 4(2)(b) of the Housing (Miscellaneous Provisions) Act, 1979.

(2)A lease shall not be a qualifying lease for the purposes of section 334, 335 or 336 if the terms of the lease contain any provision enabling the lessee or any other person, directly or indirectly, at any time to acquire any interest in the house to which the lease relates for a consideration less than that which might be expected to be given at that time for the acquisition of the interest if the negotiations for that acquisition were conducted in the open market at arm’s length.

(3)A house shall not be a qualifying premises for the purposes of section 334, 335 or 336 if –

(b)the terms of the qualifying lease in relation to the house are not such as might have been expected to be included in the lease if the negotiations for the lease had been at arm’s length.

(4)

(a)A house shall not be a qualifying premises for the purposes of section 334 or, in so far as it applies to expenditure other than expenditure on refurbishment, section 337 unless it complies with such conditions, if any, as may be determined by the Minister for the Environment and Local Government from time to time for the purposes of section 4 of the Housing (Miscellaneous Provisions) Act, 1979, in relation to standards of construction of houses and the provision of water, sewerage and other services in houses.

(b)A house shall not be a qualifying premises for the purposes of section 335 or 336 or, in so far as it applies to expenditure on refurbishment, section 337 unless it complies with such conditions, if any, as may be determined by the Minister for the Environment and Local Government from time to time for the purposes of section 5 of the Housing (Miscellaneous Provisions) Act, 1979, in relation to standards for improvements of houses and the provision of water, sewerage and other services in houses.

(5)A house shall not be a qualifying premises for the purposes of section 334, 335, 336 or 337 unless persons authorised in writing by the Minister for the Environment and Local Government for the purposes of those sections are permitted to inspect the house at all reasonable times on production, if so requested by a person affected, of their authorisations.

(6)For the purposes of sections 334 to 337, references in those sections to the construction of, conversion into, refurbishment of, or, as the case may be, construction or refurbishment of, any premises shall be construed as including references to the development of the land on which the premises is situated or which is used in the provision of gardens, grounds, access or amenities in relation to the premises and, without prejudice to the generality of the foregoing, as including in particular –

(a)demolition or dismantling of any building on the land,

(b)site clearance, earth moving, excavation, tunnelling and boring, laying of foundations, erection of scaffolding, site restoration, landscaping and the provision of roadways and other access works,

(c)walls, power supply, drainage, sanitation and water supply, and

(d)the construction of any outhouses or other buildings or structures for use by the occupants of the premises or for use in the provision of amenities for the occupants.

(7)

(a)For the purposes of determining, in relation to any claim under section 334(2), 335(4), 336(2) or 337(2), as the case may be, whether and to what extent expenditure incurred on the construction of, conversion into, refurbishment of, or, as the case may be, construction or refurbishment of, a qualifying premises is incurred or not incurred during the qualifying period, only such an amount of that expenditure as is properly attributable to work on the construction of, conversion into, refurbishment of, or, as the case may be, construction or refurbishment of, the premises which was actually carried out during the qualifying period shall be treated as having been incurred during that period.

(c)Nothing in this subsection shall affect the operation of section 337(3).

(8)

(a)For the purposes of sections 334 and 335 other than the purposes mentioned in subsection (7)(a), expenditure incurred on the construction of, or, as the case may be, conversion into, a qualifying premises shall be deemed to have been incurred on the date of the first letting of the premises under a qualifying lease.

(b)For the purposes of section 336 other than the purposes mentioned in subsection (7)(a), relevant expenditure incurred in relation to the refurbishment of a qualifying premises shall be deemed to have been incurred on the date of the commencement of the relevant period in relation to the premises, determined as respects the refurbishment to which the relevant expenditure relates.

(c)For the purposes of section 337 other than the purposes mentioned in subsection (7)(a), expenditure incurred on the construction or refurbishment of a qualifying premises shall be deemed to have been incurred on the earliest date after the expenditure was actually incurred on which the premises is in use as a dwelling.

(9)For the purposes of sections 335 and 336, expenditure shall not be regarded as incurred by a person in so far as it has been or is to be met, directly or indirectly, by the State, by any board established by statute or by any public or local authority.

(10)Section 555 shall apply as if a deduction under section 334(2), 335(4) or 336(2), as the case may be, were a capital allowance and as if any rent deemed to have been received by a person under section 334(5), 335(7) or 336(5), as the case may be, were a balancing charge.

(11)An appeal to the Appeal Commissioners shall lie on any question arising under this section or under section 334, 335, 336 or 337 (other than a question on which an appeal lies under section 18 of the Housing (Miscellaneous Provisions) Act, 1979) in the like manner as an appeal would lie against an assessment to income tax or corporation tax, and the provisions of the Tax Acts relating to appeals shall apply accordingly.

Chapter 3 Designated areas, designated streets, enterprise areas and multi-storey car parks in certain urban areas (ss. 339-350A)

339. Interpretation (Chapter 3).
(1)In this Chapter –

“designated area” and “designated street” mean respectively an area or areas or a street or streets specified as a designated area or a designated street, as the case may be, by order under section 340;

“enterprise area” means –
(a)an area or areas specified as an enterprise area by order under section 340, or
(b)an area or areas described in Schedule 7;

“lease”, “lessee”, “lessor”, “premium” and “rent” have the same meanings respectively as in Chapter 8 of Part 4;

“market value”, in relation to a building, structure or house, means the price which the unencumbered fee simple of the building, structure or house would fetch if sold in the open market in such manner and subject to such conditions as might reasonably be calculated to obtain for the vendor the best price for the building, structure or house, less the part of that price which would be attributable to the acquisition of, or of rights in or over, the land on which the building, structure or house is constructed;

“qualifying period” means –
(a)subject to subsection (2) and section 340 and other than for the purposes of section 344, the period commencing on the 1st day of August, 1994, and ending on the 31st day of July, 1997, or
(b)in respect of an area or areas described in Schedule 7, the period commencing on the 1st day of July, 1997, and ending on the 31st day of December, 1999;

“refurbishment”, in relation to a building or structure and other than for the purposes of sections 348 and 349, 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 the repair or restoration, or maintenance in the nature of repair or restoration, of the building or structure;

“the relevant local authority”, in relation to the construction of, conversion into, refurbishment of, or, as the case may be, construction or refurbishment of a building or structure to which paragraph (a) or (e) of subsection (2) applies, means the local authority for the purposes of the Local Government Act 2001 (as amended by the Local Government Reform Act 2014) in whose functional area the qualifying premises is situated;

“street” includes part of a street and the whole or part of any road, square, quay or lane.

(2)

(a)Where in relation to the construction of, conversion into, refurbishment of, or, as the case may be, construction or refurbishment of a building or structure which is –

(i)to be an industrial building or structure to which section 341 applies,

(ii)a qualifying premises within the respective meanings assigned in sections 342, 345 (other than a building or structure to which paragraph (a)(v) of that meaning in that section applies), 346, 347, 348 and 349, or

(iii)a qualifying building within the meaning of section 343,

the relevant local authority gives a certificate in writing, on or before the 30th day of September, 1997, to the person constructing, converting or refurbishing, as the case may be, such a building or structure stating that it is satisfied that not less than 15 per cent of the total cost of the building or structure had been incurred before the 31st day of July, 1997, then, the reference in paragraph (a) of the definition of “qualifying period” in subsection (1) to the period ending on the 31st day of July, 1997, shall be construed as a reference to the period ending on the 31st day of July, 1998.

(b)In considering whether to give a certificate referred to in paragraph (a), the relevant local authority shall have regard only to the guidelines in relation to the giving of such certificates entitled “Extension from 31 July, 1997, to 31 July, 1998, of the time limit for qualifying expenditure on developments” issued by the Department of the Environment on the 28th day of January, 1997.

(c)Where in relation to the construction of, conversion into, refurbishment of, or, as the case may be, construction or refurbishment of a building or structure to which paragraph (a) relates-

(i)the relevant local authority has given to the person constructing, converting or refurbishing, as the case may be, that building or structure, a certificate in writing to which that paragraph refers certifying that not less than 15 per cent of the total cost of the building or structure had been incurred before the 31st day of July, 1997, and

(ii)an application for planning permission for the work represented by the expenditure incurred or to be incurred on the building or structure had (in so far as such permission is required) been received by a planning authority not later than the 1st day of March, 1998, and

(iii)where the expenditure to be incurred on a building or structure has not been fully incurred by the 31st day of July, 1998, the relevant local authority gives a certificate in writing to the person referred to in subparagraph (i) stating that in its opinion-

(I)that person had, on the 31st day of July, 1997, a reasonable expectation that the expenditure to be incurred on the building or structure would have been incurred in full on or before the 31st day of July, 1998, and

(II)the failure to incur that expenditure in full on or before the 31st day of July, 1998, was, on the basis of reasons of a bona fide character stated to it, due, to a significant extent, to a delay outside the direct control of that person, including an unanticipated delay in obtaining the grant of planning permission or a fire certificate, an unanticipated delay due to legal proceedings or unanticipated difficulties in completing the acquisition of a site or involving the failure of a building contractor to fulfil his or her obligations or the need to respect any archaeological site or remains,

then, the reference in paragraph (a) of the definition of “qualifying period” to the period ending on the 31st day of July, 1997, shall be construed as a reference to the period ending on the 31st day of December, 1998.

(d)Where, in relation to the construction of, conversion into, refurbishment of, or, as the case may be, construction or refurbishment of a building or structure which complies with the requirements of subparagraphs (i), (ii) and (iii) of paragraph (c), being a qualifying premises within the meaning of section 346, 347, 348 or 349, where

(i)the expenditure to be incurred on the house has not been fully incurred by the 31st day of December, 1998, and

(ii)the relevant local authority gives a certificate in writing on or before the 28th day of February, 1999, to the person constructing, converting or refurbishing, as the case may be, the house stating that it is satisfied that not less than 50 per cent of the total cost of the house and the site thereof had been incurred on or before the 31st day of December, 1998,

then, the reference in paragraph (a) of the definition of “qualifying period” in subsection (1) to the period ending on the 31st day of July, 1997, shall be construed as a reference to the period ending on the 30th day of April, 1999.

(e)

(i)Where, in relation to the construction or refurbishment of a qualifying building within the meaning of section 343, the relevant local authority gives a certificate in writing on or before 31 May 2000 to the person constructing or refurbishing the qualifying building stating that it is satisfied that not less than 50 per cent of the total cost of the qualifying building and the site thereof had been incurred on or before 31 December 1999, then the reference in paragraph (b) of the definition of “qualifying period” in subsection (1) to the period ending on the 31st day of December, 1999, shall be construed as a reference to the period ending on 31 December 2000.

(ii)In considering whether to give such a certificate, the relevant local authority shall have regard only to guidelines in relation to the giving of such certificates issued by the Department of the Environment and Local Government.

(3)Schedule 7 shall apply for the purposes of supplementing this Chapter.

340. Designated areas, designated streets and enterprise areas.
(1)The Minister for Finance may, after consultation with the Minister for the Environment and Local Government, by order direct that –

(a)the area or areas, or street or streets, described in the order shall be a designated area, a designated street or, as the case may be, an enterprise area for the purposes of this Chapter, and

(b)as respects any such area or any such street so described, the definition of “qualifying period” in section 339 shall be construed as a reference to such period as shall be specified in the order in relation to that area or, as the case may be, that street; but no such period specified in the order shall commence before the 1st day of August, 1994, or end after the 31st day of July, 1997, or, as the case may be, after the day to which the reference to the 31st day of July, 1997, is, by virtue of section 339(2), to be construed.

(2)The Minister for Finance may, after consultation with the Minister for Public Enterprise and following receipt of a proposal from or on behalf of a company intending to carry on qualifying trading operations (within the meaning of section 343) in an area or areas immediately adjacent to any of the airports commonly known as –

(a)Cork Airport,

(b)Donegal Airport,

(c)Galway Airport,

(d)Kerry Airport,

(e)Knock International Airport,

(f)Sligo Airport, or

(g)Waterford Airport,

being a company which, if those trading operations were to be carried on in an area which apart from this subsection would be an enterprise area, would be a qualifying company (within the meaning of section 343), by order direct that –

(i)the area or areas described in the order shall be an enterprise area for the purposes of this Chapter, and

(ii)as respects any such area so described in the order, the reference in paragraph (a) of the definition of “qualifying period” in section 339(1) to the period commencing on the 1st day of August, 1994, and ending on the 31st day of July, 1997, shall be construed as a reference to such period as shall be specified in the order in relation to that area, but no such period specified in the order shall commence before 1 August 1994 or end after –

(I)31 December 1999, or

(II)31 December 2000, where in relation to the construction or refurbishment of a qualifying building within the meaning of section 343, the relevant local authority gives a certificate in writing on or before 31 May 2000 to the person constructing or refurbishing the qualifying building stating that it is satisfied that not less than 50 per cent of the total cost of the qualifying building and the site thereof had been incurred on or before 31 December 1999 and, in considering whether to give such a certificate, the relevant local authority shall have regard only to guidelines in relation to the giving of such certificates issued by the Department of the Environment and Local Government.

(3)Every order made by the Minister for Finance under subsection (1) or (2) shall be laid before Dáil Éireann as soon as may be after it is made and, if a resolution annulling the order is passed by Dáil Éireann within the next 21 days on which Dáil Éireann has sat after the order is laid before it, the order shall be annulled accordingly, but without prejudice to the validity of anything previously done thereunder.

341. Accelerated capital allowances in relation to construction or refurbishment of certain industrial buildings or structures.
(1)This section shall apply to a building or structure the site of which is wholly within a designated area, or which fronts on to a designated street, and which is to be an industrial building or structure by reason of its use for a purpose specified in section 268 (1)(a).

(2)Subject to subsection (4), section 271 shall apply in relation to capital expenditure incurred in the qualifying period on the construction or refurbishment of a building or structure to which this section applies as if –

(a)in subsection (1) of that section the definition of “industrial development agency” were deleted,

(b)in subsection (2)(a)(i) of that section “to which subsection (3) applies” were deleted,

(c)subsection (3) of that section were deleted,

(d)the following subsection were substituted for subsection (4) of that section:

“(4)An industrial building allowance shall be of an amount equal to 25 per cent of the capital expenditure mentioned in subsection (2).”,

and

(e)in subsection (5) of that section “to which subsection (3)(c) applies” were deleted.

(3)Subject to subsection (4), section 273 shall apply in relation to capital expenditure incurred in the qualifying period on the construction or refurbishment of a building or structure to which this section applies as if –

(a)in subsection (1) of that section the definition of “industrial development agency” were deleted,

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

and

(c)subsections (3) to (7) of that section were deleted.

(4)

(a)In the case of an industrial building or structure which fronts on to a designated street, subsections (2) and (3) shall apply only in relation to capital expenditure incurred in the qualifying period on the refurbishment of the industrial building or structure and only if the following conditions are satisfied –

(i)that the industrial building or structure was comprised in an existing building or structure (in this subsection referred to as “the existing building”) on the 1st day of August, 1994, which fronts on to the designated street, and

(ii)that, apart from the capital expenditure incurred in the qualifying period on the refurbishment of the industrial building or structure, expenditure is incurred on the existing building which is –

(I)conversion expenditure within the meaning of section 347,

(II)relevant expenditure within the meaning of section 348, or

(III)qualifying expenditure within the meaning of section 349 (being qualifying expenditure on refurbishment within the meaning of that section),

and in respect of which a deduction has been given, or would on due claim being made be given, under section 347, 348 or 349, as the case may be.

(b)Notwithstanding paragraph (a), subsections (2) and (3) shall not apply in relation to so much (if any) of the capital expenditure incurred in the qualifying period on the refurbishment of the industrial building or structure as exceeds the amount of the deduction, or the aggregate amount of the deductions, which has been given, or which would on due claim being made be given, under section 347, 348 or 349, as the case may be, in respect of the conversion expenditure, the relevant expenditure or, as the case may be, the qualifying expenditure.

(5)Notwithstanding section 274(1), no balancing charge shall be made in relation to a building or structure to which this section applies by reason of any of the events specified in that section which occurs –

(a)more than 13 years after the building or structure was first used, or

(b)in a case where section 276 applies, more than 13 years after the capital expenditure on refurbishment of the building or structure was incurred.

(6)For the purposes only of determining, in relation to a claim for an allowance under section 271 or 273 as applied by this section, whether and to what extent capital expenditure incurred on the construction or refurbishment of an industrial building or structure is incurred or not incurred in the qualifying period, only such an amount of that capital expenditure as is properly attributable to work on the construction or, as the case may be, the refurbishment of the building or structure actually carried out during the qualifying period shall (notwithstanding 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.

342. Capital allowances in relation to construction or refurbishment of certain commercial premises.
(1)

(a)In this section, “qualifying premises” means a building or structure the site of which is wholly within a designated area, or which fronts on to a designated street, and which –

(i)apart from this section is not an industrial building or structure within the meaning of section 268, and

(ii)

(I)is in use for the purposes of a trade or profession, or

(II)whether or not it is so used, is let on bona fide commercial terms for such consideration as might be expected to be paid in a letting of the building or structure negotiated on an arm’s length basis,

but does not include any part of a building or structure in use as or as part of a dwelling house or an office.

(b)Notwithstanding paragraph (a) –

(i)in relation to a building or structure no part of the site of which is within any one of the county boroughs of Dublin, Cork, Limerick, Galway or Waterford, paragraph (a) shall be construed as if “or an office” were deleted;

(ii)where, in relation to a building or structure any part of the site of which is within any one of the county boroughs of Dublin, Cork, Limerick, Galway or Waterford, any part (in this paragraph referred to as “the specified part”) of the building or structure is not a qualifying premises and –

(I)the specified part is in use as, or as part of, an office, and

(II)the capital expenditure incurred in the qualifying period on the construction or refurbishment of the specified part is not more than 10 per cent of the total capital expenditure incurred in that period on the construction or refurbishment of the building or structure,

then, the specified part shall be treated as a qualifying premises.

(2)

(a)Subject to subsections (3) to (6), the provisions of the Tax Acts (other than section 341) relating to the making of allowances or charges in respect of capital expenditure incurred on the construction or refurbishment of an industrial building or structure shall, notwithstanding anything to the contrary in those provisions, apply –

(ii)where any activity carried on in the qualifying premises is not a trade, as if it were a trade.

(3)

(a)In the case of a qualifying premises which fronts on to a designated street, subsection (2) shall apply only in relation to capital expenditure incurred in the qualifying period on the refurbishment of the qualifying premises and only if the following conditions are satisfied –

(i)that the qualifying premises were comprised in an existing building or structure (in this subsection referred to as “the existing building”) on the 1st day of August, 1994, which fronts on to the designated street, and

(ii)that, apart from the capital expenditure incurred in the qualifying period on the refurbishment of the qualifying premises, expenditure is incurred on the existing building which is –

(I)conversion expenditure within the meaning of section 347,

(II)relevant expenditure within the meaning of section 348, or

(III)qualifying expenditure within the meaning of section 349 (being qualifying expenditure on refurbishment within the meaning of that section),

and in respect of which a deduction has been given, or would on due claim being made be given, under section 347, 348 or 349, as the case may be.

(b)Notwithstanding paragraph (a), subsection (2) shall not apply in relation to so much (if any) of the capital expenditure incurred in the qualifying period on the refurbishment of the qualifying premises as exceeds the amount of the deduction, or the aggregate amount of the deductions, which has been given, or which would on due claim being made be given, under section 347, 348 or 349, as the case may be, in respect of the conversion expenditure, the relevant expenditure or, as the case may be, the qualifying expenditure.

(4)For the purposes of the application, by subsection (2), of sections 271 and 273 in relation to capital expenditure incurred in the qualifying period on the construction or refurbishment of a qualifying premises –

(a)section 271 shall apply as if –

(i)in subsection (1) of that section the definition of “industrial development agency” were deleted,

(ii)in subsection (2)(a)(i) of that section “to which subsection (3) applies” were deleted,

(iii)subsection (3) of that section were deleted,

(iv)the following subsection were substituted for subsection (4) of that section:

“(4)An industrial building allowance shall be of an amount equal to 50 per cent of the capital expenditure mentioned in subsection (2).”,

and

(v)in subsection (5) of that section “to which subsection (3)(c) applies” were deleted,

and

(b)section 273 shall apply as if –

(i)in subsection (1) of that section the definition of “industrial development agency” were deleted, and

(ii)subsections (2)(b) and (3) to (7) of that section were deleted.

(5)Notwithstanding section 274(1), no balancing charge shall be made in relation to a qualifying premises by reason of any of the events specified in that section which occurs –

(a)more than 13 years after the qualifying premises was first used, or

(b)in a case where section 276 applies, more than 13 years after the capital expenditure on refurbishment of the qualifying premises was incurred.

(6)

(a)Notwithstanding subsections (2) to (5), any allowance or charge which apart from this subsection would be made by virtue of subsection (2) in respect of capital expenditure incurred on the construction or refurbishment of a qualifying premises shall be reduced to one-half of the amount which apart from this subsection would be the amount of that allowance or charge.

(b)For the purposes of paragraph (a), the amount of an allowance or charge to be reduced to one-half shall be computed as if –

(i)this subsection had not been enacted, and

(ii)effect had been given to all allowances taken into account in so computing that amount.

(c)Nothing in this subsection shall affect the operation of section 274(8).

(7)For the purposes only of determining, in relation to a claim for an allowance by virtue of subsection (2), whether and to what extent capital expenditure incurred on the construction or refurbishment of a qualifying premises is incurred or not incurred in the qualifying period, only such an amount of that capital expenditure as is properly attributable to work on the construction or refurbishment of the premises actually carried out during the qualifying period shall (notwithstanding 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.

343. Capital allowances in relation to construction or refurbishment of certain buildings or structures in enterprise areas.
(1)In this section –

“property developer” means a person carrying on a trade which consists wholly or mainly of the construction or refurbishment of buildings or structures with a view to their sale;

“the Minister”, except where the context otherwise requires, means the Minister for Enterprise, Trade and Employment;

“qualifying building” means a building or structure the site of which is wholly within an enterprise area and which is in use for the purposes of the carrying on of qualifying trading operations by a qualifying company, but does not include any part of a building or structure in use as or as part of a dwelling house;

“qualifying company” means a company –

(a)

(i)which has been approved for financial assistance under a scheme administered by Forfás, Enterprise Ireland, the Industrial Development Agency (Ireland) or údarás na Gaeltachta, or

(ii)which is engaged in a qualifying trading operation within the meaning of paragraph (c) of the definition of “qualifying trading operations”,

and

(b)to which the Minister has given a certificate under subsection (2) which has not been withdrawn in accordance with subsection (5) or (6);

“qualifying trading operations” means –

(a)the manufacture of goods within the meaning of Part 14, or

(b)the rendering of services in the course of a service industry (within the meaning of the Industrial Development Act, 1986).

(2)Subject to subsection (4), the Minister may –

(a)on the recommendation of Forfás (in conjunction with Enterprise Ireland, the Industrial Development Agency (Ireland) or údarás na Gaeltachta, as may be appropriate, or the Minister for Public Enterprise in the case of a company to which paragraph (a) (ii) of the definition of “qualifying company” refers) in accordance with guidelines laid down by the Minister, and

(b)following consultation with the Minister for Finance,

give a certificate to a company certifying that the company is, with effect from a date to be specified in the certificate, to be treated as a qualifying company for the purposes of this section.

(3)A certificate under subsection (2) may be given either without conditions or subject to such conditions as the Minister considers proper and specifies in the certificate.

(4)The Minister shall not certify under subsection (2) that a company is a qualifying company for the purposes of this section unless –

(a)the company is carrying on or intends to carry on qualifying trading operations in an enterprise area, and

(b)the Minister is satisfied that the carrying on by the company of such trading operations will contribute to the balanced development of the enterprise area.

(5)Where, in the case of a company in relation to which a certificate under subsection (2) has been given –

(a)the company ceases to carry on or, as the case may be, fails to commence to carry on qualifying trading operations in the enterprise area, or

(b)the Minister is satisfied that the company has failed to comply with any condition subject to which the certificate was given,

the Minister may, by notice in writing served by registered post on the company, revoke the certificate with effect from such date as may be specified in the notice.

(6)Where, in the case of a company in relation to which a certificate under subsection (2) has been given, the Minister is of the opinion that any activity of the company has had or may have an adverse effect on the use or development of the enterprise area or is otherwise inimical to the balanced development of the enterprise area, then –

(a)the Minister may, by notice in writing served by registered post on the company, require the company to desist from such activity with effect from such date as may be specified in the notice, and

(b)if the Minister is not satisfied that the company has complied with the requirements of the notice, the Minister may, by a further notice in writing served by registered post on the company, revoke the certificate with effect from such date as may be specified in the further notice.

(7)

(a)Subject to subsections (8), (9) and (11), the provisions of the Tax Acts (other than section 341) relating to the making of allowances or charges in respect of capital expenditure incurred on the construction or refurbishment of an industrial building or structure shall, notwithstanding anything to the contrary in those provisions, apply as if a qualifying building were, at all times at which it is a qualifying building, 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 Chapter 1 of Part 9 by reason of its use for a purpose specified in section 268 (1) (a).

(b)An allowance shall be given by virtue of this subsection in respect of any capital expenditure incurred on the construction or refurbishment of a qualifying building only in so far as that expenditure is incurred in the qualifying period.

(8)For the purposes of the application, by subsection (7), of sections 271 and 273 in relation to capital expenditure incurred in the qualifying period on the construction or refurbishment of a qualifying building –

(a)section 271 shall apply as if –

(i)in subsection (1) of that section the definition of “industrial development agency” were deleted,

(ii)in subsection (2)(a)(i) of that section “to which subsection (3) applies” were deleted,

(iii)subsection (3) of that section were deleted,

(iv)the following subsection were substituted for subsection (4) of that section:

“(4)An industrial building allowance, in the case of a qualifying building (within the meaning of section 343(1)), shall be of an amount equal to –

(a)25 per cent, or

(b)in the case of such a building the site of which is wholly within an area described in an order referred to in section 340(2) (i), 50 per cent,

of the capital expenditure mentioned in subsection (2).”,

and

(v)in subsection (5) of that section “to which subsection (3)(c) applies” were deleted,

and

(b)section 273 shall apply as if –

(i)in subsection (1) of that section the definition of “industrial development agency” were deleted,

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

and

(iii)subsections (3) to (7) of that section were deleted.

(9)Notwithstanding section 274(1), no balancing charge shall be made in relation to a qualifying building by reason of any of the events specified in that section which occurs –

(a)more than 13 years after the qualifying building was first used, or

(b)in a case where section 276 applies, more than 13 years after the capital expenditure on refurbishment of the qualifying building was incurred.

(10)For the purposes only of determining, in relation to a claim for an allowance by virtue of subsection (7), whether and to what extent capital expenditure incurred on the construction or refurbishment of a qualifying building is incurred or not incurred in the qualifying period, only such an amount of that capital expenditure as is properly attributable to work on the construction or refurbishment of the building actually carried out during the qualifying period shall (notwithstanding 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.

(11)Notwithstanding the preceding provisions of this section, this section shall not apply in respect of expenditure incurred on the construction or refurbishment of a qualifying building, the site of which is wholly within an area described in an order referred to in section 340(2)(i) –

(a)where a property developer is entitled to the relevant interest, within the meaning of section 269, in relation to that expenditure, and

(b)either the person referred to in paragraph (a) or a person connected (within the meaning of section 10) with that person incurred the expenditure on the construction or refurbishment of the qualifying building concerned.

344. Capital allowances in relation to construction or refurbishment of certain multi-storey car parks.
(1)In this section –

“multi-storey car park” means a building or structure consisting of 2 or more storeys wholly in use for the purpose of providing, for members of the public generally without preference for any particular class of person, on payment of an appropriate charge, parking space for mechanically propelled vehicles;

“qualifying multi-storey car park” means a multi-storey car park in respect of which the relevant local authority gives a certificate in writing to the person providing the multi-storey car park stating that it is satisfied that the multi-storey car park has been developed in accordance with criteria laid down by the Minister for the Environment and Local Government following consultation with the Minister for Finance;

“qualifying period” means the period commencing on the 1st day of July, 1995, and ending on –

(a)the 30th day of June, 1998, or

(b)30 September 1999, where, in relation to the construction or refurbishment of the qualifying multi-storey car park concerned, the relevant local authority gives a certificate in writing on or before the 30th day of September, 1998, to the person constructing or refurbishing the qualifying multi-storey car park stating that it is satisfied that not less than 15 per cent of the total cost of the qualifying multi-storey car park and the site thereof had been incurred prior to the 1st day of July, 1998, and, in considering whether to give such a certificate, the relevant local authority shall have regard only to guidelines in relation to the giving of such certificates issued by the Department of the Environment and Local Government for the purposes of this definition, or

(c)31 December 2006, where, in relation to the construction or refurbishment of the qualifying multi-storey car park concerned (not being a qualifying multi-storey car park any part of the site of which is within either of the county boroughs of Cork or Dublin), the relevant local authority gives a certificate in writing on or before 31 December 2003 to the person constructing or refurbishing the qualifying multi-storey car park stating that it is satisfied that not less than 15 per cent of the total cost of the qualifying multi-storey car park and the site thereof had been incurred on or before 30 September 2003 and, in considering whether to give such a certificate, the relevant local authority shall have regard only to guidelines in relation to the giving of such certificates issued by the Department of the Environment and Local Government for the purposes of this definition, or

(d)31 July 2008, where in relation to the construction or refurbishment of the qualifying multi-storey car park –

(i) the relevant local authority has issued the certificate referred to in paragraph (c) on or before 31 December 2003, and

(ii)

(I)the person who is constructing or refurbishing the qualifying multi-storey car park 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 qualifying multi-storey car park, and

(II)the person referred to in clause (I) or, where the qualifying multi-storey car park is sold by that person, the person who is claiming a deduction under Chapter 1 of Part 9 in relation to the expenditure incurred, can show that the condition in clause (I) was satisfied;

“the relevant local authority”, in relation to the construction or replacement of a multi-storey car park, means the local authority for the purposes of the Local Government Act 2001 (as amended by the Local Government Reform Act 2014) in whose functional area the multi-storey car park is situated.

(2)

(a)Subject to subsections (3) to (6A) and (as inserted by the Finance Act 2006) sections 270(4), 270(5), 270(6) and 316(2B), the provisions of the Tax Acts (other than section 341) relating to the making of allowances or charges in respect of capital expenditure incurred on the construction or refurbishment of an industrial building or structure shall, notwithstanding anything to the contrary in those provisions, apply as if a qualifying multi-storey car park were, at all times at which it is a qualifying multi-storey car park, 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 Chapter 1 of Part 9 by reason of its use for a purpose specified in section 268(1)(a).

(b)An allowance shall be given by virtue of this subsection in respect of any capital expenditure incurred on the construction or refurbishment of a qualifying multi-storey car park only in so far as that expenditure is incurred in the qualifying period.

(3)In a case where capital expenditure is incurred in the qualifying period on the refurbishment of a qualifying multi-storey car park, subsection (2) shall apply only if the total amount of the capital expenditure so incurred is not less than an amount equal to 20 per cent of the market value of the qualifying multi-storey car park immediately before that expenditure is incurred.

(a)section 271 shall apply as if –

(i)in subsection (1) of that section the definition of “industrial development agency” were deleted,

(ii)in subsection (2)(a)(i) of that section “to which subsection (3) applies” were deleted,

(iii)subsection (3) of that section were deleted,

(iv)the following subsection were substituted for subsection (4) of that section:

“(4)An industrial building allowance shall be of an amount equal to 50 per cent of the capital expenditure mentioned in subsection (2).”,

and

(v)in subsection (5) of that section “to which subsection (3)(c) applies” were deleted,

and

(b)section 273 shall apply as if –

(i)in subsection (1) of that section, the definition of “industrial development agency” were deleted, and

(ii)subsections (2)(b) and (3) to (7) of that section were deleted.

(5)Notwithstanding section 274(1), no balancing charge shall be made in relation to a qualifying multi-storey car park by reason of any of the events specified in that section which occurs –

(a)more than 13 years after the qualifying multi-storey car park was first used, or

(b)in a case where section 276 applies, more than 13 years after the capital expenditure on refurbishment of the multi-storey car park was incurred.

(6)

(a)Notwithstanding subsections (2) to (5), any allowance or charge which apart from this subsection would be made by virtue of subsection (2) in respect of capital expenditure incurred on the construction or refurbishment of a qualifying multi-storey car park shall be reduced to one-half of the amount which apart from this subsection would be the amount of that allowance or charge.

(b)For the purposes of paragraph (a), the amount of an allowance or charge to be reduced to one-half shall be computed as if –

(i)this subsection had not been enacted, and

(ii)effect had been given to all allowances taken into account in so computing that amount.

(c)Nothing in this subsection shall affect the operation of section 274(8).

(6A)Subsection (6) shall apply and have effect as respects capital expenditure referred to in subsection (2)(b), which is incurred after the 31st day of July, 1998, only if a qualifying lease, within the meaning of section 345, is granted in respect of the qualifying multi-storey car park in respect of which that expenditure is incurred.

(7)For the purposes only of determining, in relation to a claim for an allowance by virtue of subsection (2), whether and to what extent capital expenditure incurred on the construction or refurbishment of a qualifying multi-storey car park is incurred or not incurred in the qualifying period, only such an amount of that capital expenditure as is properly attributable to work on the construction or refurbishment of the qualifying multi-storey car park actually carried out during the qualifying period shall (notwithstanding 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.

(8)Where by virtue of subsection (2) an allowance is given under Chapter 1 of Part 9 in respect of capital expenditure incurred on the construction or refurbishment of a qualifying multi-storey car park, no allowance shall be given in respect of that expenditure under that Chapter by virtue of any other provision of the Tax Acts.

345. Double rent allowance in respect of rent paid for certain business premises.
(1)In this section –

“qualifying lease” means, subject to subsections (1A) and (8), a lease in respect of a qualifying premises granted in the qualifying period, or within the period of one year from the day next after the end of the qualifying period, on bona fide commercial terms by a lessor to a lessee not connected with the lessor, or with any other person entitled to a rent in respect of the qualifying premises, whether under that lease or any other lease but, notwithstanding the foregoing, a lease which would otherwise be a qualifying lease shall not be such a lease if granted in respect of a building or structure within the meaning of paragraph (a)(iii) of the definition of “qualifying premises” the site of which is wholly within an area –

(a)described in an order referred to in section 340(1)(a), if the lease is granted on or after the 31st day of July, 1999, or

(b)described in Schedule 7, if the lease is granted on or after the 31st day of December, 1999, or

(c)described in an order referred to in section 340(2)(i), irrespective of the date of the granting of the lease;

“qualifying premises” means, subject to subsection (5)(a), a building or structure –

(a)

(i)the site of which is wholly within a designated area and which is a building or structure in use for a purpose specified in section 268(1)(a), and in respect of which capital expenditure is incurred in the qualifying period for which an allowance is to be made, or will by virtue of section 279 be made, for the purposes of income tax or corporation tax, as the case may be, under section 271 or 273, as applied by section 341,

(ii)the site of which is wholly within a designated area and in respect of which an allowance is to be made, or will by virtue of section 279 be made, for the purposes of income tax or corporation tax, as the case may be, under Chapter 1 of Part 9 by virtue of section 342,

(iii)the site of which is wholly within an enterprise area and in respect of which an allowance is to be made, or will by virtue of section 279 be made, for the purposes of income tax or corporation tax, as the case may be, under Chapter 1 of Part 9 by virtue of section 343,

(iv)the site of which is wholly within a designated area and which is a building or structure in use for the purposes specified in section 268(1)(d), and in respect of the construction or refurbishment of which capital expenditure is incurred in the qualifying period for which an allowance would but for subsection (6) be made for the purposes of income tax or corporation tax, as the case may be, under Chapter 1 of Part 9, or

(v)in respect of which an allowance is to be made, or will by virtue of section 279 be made, for the purposes of income tax or corporation tax, as the case may be, under Chapter 1 of Part 9 by virtue of section 344,

and

(b)which is let on bona fide commercial terms for such consideration as might be expected to be paid in a letting of the building or structure negotiated on an arm’s length basis,

but, where capital expenditure is incurred in the qualifying period on the refurbishment of a building or structure in respect of which an allowance is to be made, or will by virtue of section 279 be made, or in respect of which an allowance would but for subsection (6) be made, for the purposes of income tax or corporation tax, as the case may be, under any of the provisions referred to in paragraph (a), the building or structure shall not be regarded as a qualifying premises unless the total amount of the expenditure so incurred is not less than an amount equal to 10 per cent of the market value of the building or structure immediately before that expenditure is incurred.

(1A)Notwithstanding any other provision of this Chapter, including this section, “qualifying period” for the purposes of this section in the case of a building or structure within the meaning of paragraph (a)(v) of the definition of “qualifying premises” in subsection (1) means the period commencing on the 1st day of August, 1994, and ending on –

(a)the 31st day of July, 1997, or

(b)the 30 September 1998, where, in relation to the construction or refurbishment of the qualifying multi-storey car park concerned, the relevant local authority has certified in accordance with the requirements of paragraph (b) of the definition of “qualifying period” in section 344(1).

(2)For the purposes of this section, so much of a period, being a period when rent is payable by a person in relation to a qualifying premises under a qualifying lease, shall be a relevant rental period as does not exceed –

(a)10 years, or

(b)the period by which 10 years exceeds –

(i)any preceding period, or

(ii)if there is more than one preceding period, the aggregate of those periods,

for which rent was payable by that person or any other person in relation to that premises under a qualifying lease.

(3)Subject to subsection (4), where in the computation of the amount of the profits or gains of a trade or profession a person is apart from this section entitled to any deduction (in this subsection referred to as “the first-mentioned deduction”) on account of rent in respect of a qualifying premises occupied by such person for the purposes of that trade or profession which is payable by such person for a relevant rental period in relation to that qualifying premises under a qualifying lease, such person shall be entitled in that computation to a further deduction (in this subsection referred to as “the second-mentioned deduction”) equal to the amount of the first-mentioned deduction but, as respects a qualifying lease granted on or after the 21st day of April, 1997, where the first-mentioned deduction is on account of rent payable by such person to a connected person, such person shall not be entitled in that computation to the second-mentioned deduction.

(4)Where a person holds an interest in a qualifying premises out of which interest a qualifying lease is created directly or indirectly in respect of the qualifying premises and in respect of rent payable under the qualifying lease a claim for a further deduction under this section is made, and either such person or another person connected with such person –

(5)

(a)A building or structure in use for the purposes specified in section 268(1)(d) shall not be a qualifying premises for the purposes of this section unless the person to whom an allowance under Chapter 1 of Part 9 would but for subsection (6) be made for the purposes of income tax or corporation tax, as the case may be, in respect of the capital expenditure incurred in the qualifying period on the construction or refurbishment of the building or structure elects by notice in writing to the appropriate inspector (within the meaning of section 950) to disclaim all allowances under that Chapter in respect of that capital expenditure.

(b)An election under paragraph (a) shall be included in the return required to be made by the person concerned under section 951 for the first year of assessment or the first accounting period, as the case may be, for which an allowance would but for subsection (6) have been made to that person under Chapter 1 of Part 9 in respect of that capital expenditure.

(c)An election under paragraph (a) shall be irrevocable.

(d)A person who has made an election under paragraph (a) shall furnish a copy of that election to any person (in this paragraph referred to as “the second-mentioned person”) to whom the person grants a qualifying lease in respect of the qualifying premises, and the second-mentioned person shall include the copy in the return required to be made by the second-mentioned person under section 951 for the year of assessment or accounting period, as the case may be, in which rent is first payable by the second-mentioned person under the qualifying lease in respect of the qualifying premises.

(6)Where a person who has incurred capital expenditure in the qualifying period on the construction or refurbishment of a building or structure in use for the purposes specified in section 268(1)(d) makes an election under subsection (5)(a), then, notwithstanding any other provision of the Tax Acts –

(a)no allowance under Chapter 1 of Part 9 shall be made to the person in respect of that capital expenditure,

(b)on the occurrence, in relation to the building or structure, of any of the events referred to in section 274(1), the residue of expenditure (within the meaning of section 277) in relation to that capital expenditure shall be deemed to be nil, and

(c)section 279 shall not apply in the case of any person who buys the relevant interest (within the meaning of section 269) in the building or structure.

(7)For the purposes of determining, in relation to paragraph (a)(iv) of the definition of “qualifying premises” and subsections (5) and (6), whether and to what extent capital expenditure incurred on the construction or refurbishment of a building or structure is incurred or not incurred in the qualifying period, 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 the qualifying period shall (notwithstanding 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.

(8)

(a)In this subsection –

“current value”, in relation to minimum lease payments, means the value of those payments discounted to their present value at a rate which, when applied at the inception of the lease to –

(i)those payments, including any initial payment but excluding any payment or part of any payment for which the lessor will be accountable to the lessee, and

(ii)any unguaranteed residual value of the qualifying premises, excluding any part of such value for which the lessor will be accountable to the lessee,

produces discounted present values the aggregate amount of which equals the amount of the fair value of the qualifying premises;

“inception of the lease” means the earlier of the time the qualifying premises is brought into use or the date from which rentals under the lease first accrue;

(b)A finance lease, that is –

shall not be a qualifying lease for the purposes of this section.

346. Rented residential accommodation: deduction for certain expenditure on construction.
Repealed from 1 January 2002
(1)In this section –

“qualifying lease”, in relation to a house, means, subject to section 350(2), a lease of the house the consideration for the grant of which consists –

(a)solely of periodic payments all of which are or are to be treated as rent for the purposes of Chapter 8 of Part 4, or

(b)of payments of the kind mentioned in paragraph (a), together with a payment by means of a premium which does not exceed 10 per cent of the relevant cost of the house;

“qualifying premises” means, subject to subsections (3), (4)(a), (4)(c) and (5) of section 350, a house –

(a)the site of which is wholly within a designated area,

(b)which is used solely as a dwelling,

(c)the total floor area of which –

(i)is not less than 30 square metres and not more than –

(I)125 square metres, or

(II)as respects expenditure incurred before the 12th day of April, 1995, 90 square metres,

in the case where the house is a separate self-contained flat or maisonette in a building of 2 or more storeys, or

(ii)in any other case, is not less than 35 square metres and not more than 125 square metres;

(d)in respect of which, if it is not a new house (for the purposes of section 4 of the Housing (Miscellaneous Provisions) Act, 1979) provided for sale, there is in force a certificate of reasonable cost, the amount specified in which in respect of the cost of construction of the house is not less than the expenditure actually incurred on such construction, and

(e)which without having been used is first let in its entirety under a qualifying lease and thereafter throughout the remainder of the relevant period (except for reasonable periods of temporary disuse between the ending of one qualifying lease and the commencement of another such lease) continues to be let under such a lease;

“relevant cost”, in relation to a house, means, subject to subsection (3), an amount equal to the aggregate of –

(a)the expenditure incurred on the acquisition of, or of rights in or over, any land on which the house is constructed, and

(b)the expenditure actually incurred on the construction of the house;

“relevant period”, in relation to a qualifying premises, means the period of 10 years beginning on the date of the first letting of the premises under a qualifying lease.

(2)Subject to subsection (3), where a person, having made a claim in that behalf, proves to have incurred expenditure on the construction of a qualifying premises –

(a)such person shall be entitled, in computing for the purposes of section 97(1) the amount of a surplus or deficiency in respect of the rent from the qualifying premises, to a deduction of so much (if any) of that expenditure as is to be treated under section 350(7) or under this section as having been incurred by such person in the qualifying period, and

(b)Chapter 8 of Part 4 shall apply as if that deduction were a deduction authorised by section 97(2).

(3)

(i)the amount of such premium or such other sum or, as the case may be, that part of such premium or such other sum, and

(ii)the amount which bears to the amount mentioned in subparagraph (i) the same proportion as the amount of the expenditure actually incurred on the construction of the qualifying premises which is to be treated under section 350(7) as having been incurred in the qualifying period bears to the whole of the expenditure incurred on that construction.

(a)of the expenditure incurred on the construction of that building or those buildings, and

(b)of the amount which would be the relevant cost in relation to that building or those buildings if the building or buildings, as the case may be, were a single qualifying premises,

for the purposes of determining the expenditure incurred on the construction of the qualifying premises and the relevant cost in relation to the qualifying premises.

(5)Where a house is a qualifying premises and at any time during the relevant period in relation to the premises either of the following events occurs –

(a)the house ceases to be a qualifying premises, or

(b)the ownership of the lessor’s interest in the house passes to any other person but the house does not cease to be a qualifying premises,

(6)

(a)Where the event mentioned in subsection (5)(b) occurs in the relevant period in relation to a house which is a qualifying premises, the person to whom the ownership of the lessor’s interest in the house passes shall be treated for the purposes of this section as having incurred in the qualifying period an amount of expenditure on the construction of the house equal to the amount which under section 350 (7) or under this section (apart from subsection (3)(b)) the lessor was treated as having incurred in the qualifying period on the construction of the house; but, in the case of a person who purchases such a house, the amount so treated as having been incurred by such person shall not exceed the relevant price paid by such person on the purchase.

(b)For the purposes of this subsection and subsection (7), the relevant price paid by a person on the purchase of a house shall be the amount which bears to the net price paid by such person on that purchase the same proportion as the amount of the expenditure actually incurred on the construction of the house which is to be treated under section 350(7) as having been incurred in the qualifying period bears to the relevant cost in relation to that house.

(7)

(i)the amount of such expenditure which is to be treated under section 350(7) as having been incurred in the qualifying period, and

(ii)the relevant price paid by such person on the purchase;

but, where the house is sold more than once before it is used, this subsection shall apply only in relation to the last of those sales.

(b)Where expenditure is incurred on the construction of a house by a person carrying on a trade or part of a trade which consists, as to the whole or any part of the trade, of the construction of buildings with a view to their sale and the house, before it is used, is sold in the course of that trade or, as the case may be, that part of that trade –

(8)Section 350 shall apply for the purposes of supplementing this section.

347. Rented residential accommodation: deduction for certain expenditure on conversion.
Repealed from 1 January 2002
(1)In this section –

“conversion expenditure” means, subject to subsection (2), expenditure incurred on –

(a)the conversion into a house of a building –

(i)the site of which is wholly within a designated area, or which fronts on to a designated street, and

(ii)which has not been previously in use as a dwelling,

and

(b)the conversion into 2 or more houses of a building –

(i)the site of which is wholly within a designated area, or which fronts on to a designated street, and

(ii)which before the conversion had not been in use as a dwelling or had been in use as a single dwelling,

and references in this section and in section 350 to “conversion”, “conversion into a house” and “expenditure incurred on conversion” shall be construed accordingly;

“qualifying lease”, in relation to a house, means, subject to section 350(2), a lease of the house the consideration for the grant of which consists –

(a)solely of periodic payments all of which are or are to be treated as rent for the purposes of Chapter 8 of Part 4, or

“qualifying premises” means, subject to subsections (3), (4)(b), (4)(c) and (5) of section 350, a house –

(a)which is used solely as a dwelling,

(b)the total floor area of which –

(i)is not less than 30 square metres and not more than 125 square metres in the case where the house is a separate self-contained flat or maisonette in a building of 2 or more storeys, or