{"id":28839,"date":"2023-11-06T21:37:03","date_gmt":"2023-11-06T21:37:03","guid":{"rendered":"https:\/\/legalblog.ie\/?p=28839"},"modified":"2024-03-31T17:13:20","modified_gmt":"2024-03-31T17:13:20","slug":"vat-property-misc","status":"publish","type":"post","link":"https:\/\/legalblog.ie\/vat-property-misc\/","title":{"rendered":"VAT Property Misc"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_63 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/legalblog.ie\/vat-property-misc\/#Going_Concern\" title=\"Going Concern\">Going Concern<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/legalblog.ie\/vat-property-misc\/#Inter-Group\" title=\"Inter-Group\">Inter-Group<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/legalblog.ie\/vat-property-misc\/#Security\" title=\"Security\">Security<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/legalblog.ie\/vat-property-misc\/#Sale\" title=\"Sale\">Sale<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/legalblog.ie\/vat-property-misc\/#Option\" title=\"Option\">Option<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/legalblog.ie\/vat-property-misc\/#Deposit\" title=\"Deposit\">Deposit<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/legalblog.ie\/vat-property-misc\/#Converted\" title=\"Converted\">Converted<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/legalblog.ie\/vat-property-misc\/#Gift\" title=\"Gift\">Gift<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/legalblog.ie\/vat-property-misc\/#Supply_Rate_Place\" title=\"Supply Rate &amp; Place\">Supply Rate &amp; Place<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/legalblog.ie\/vat-property-misc\/#Insolvency_Officers\" title=\"Insolvency Officers\">Insolvency Officers<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/legalblog.ie\/vat-property-misc\/#Receiver\" title=\"Receiver\">Receiver<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/legalblog.ie\/vat-property-misc\/#NAMA\" title=\"NAMA\">NAMA<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/legalblog.ie\/vat-property-misc\/2\/#VALUE-ADDED_TAX_CONSOLIDATION_ACT\" title=\"VALUE-ADDED TAX CONSOLIDATION ACT\">VALUE-ADDED TAX CONSOLIDATION ACT<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/legalblog.ie\/vat-property-misc\/2\/#Part_11_Immovable_Goods_ss_93-98_93\" title=\"Part 11 Immovable Goods (ss. 93-98) \n93.\">Part 11 Immovable Goods (ss. 93-98) \n93.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/legalblog.ie\/vat-property-misc\/2\/#Supply_of_immovable_goods_old_rules\" title=\"Supply of immovable goods (old rules).\">Supply of immovable goods (old rules).<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/legalblog.ie\/vat-property-misc\/2\/#Supplies_of_immovable_goods_new_rules\" title=\"Supplies of immovable goods (new rules).\">Supplies of immovable goods (new rules).<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/legalblog.ie\/vat-property-misc\/2\/#Transitional_measures_for_supplies_of_immovable_goods\" title=\"Transitional measures for supplies of immovable goods.\">Transitional measures for supplies of immovable goods.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/legalblog.ie\/vat-property-misc\/2\/#Waiver_of_exemption_under_old_rules\" title=\"Waiver of exemption under old rules.\">Waiver of exemption under old rules.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/legalblog.ie\/vat-property-misc\/2\/#Option_to_tax_letting_of_immovable_goods\" title=\"Option to tax letting of immovable goods.\">Option to tax letting of immovable goods.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/legalblog.ie\/vat-property-misc\/2\/#Valuation_of_an_interest_in_immovable_goods\" title=\"Valuation of an interest in immovable goods.\">Valuation of an interest in immovable goods.<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h3><span class=\"ez-toc-section\" id=\"Going_Concern\"><\/span>Going Concern<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The general exemption for the transfer of a business as a growing concern applies to transfers of freehold property. This includes the grant of long leaseholds which are equivalent to\u00a0 freehold transfers. \u00a0Under the transfer as a going concern treatment, the purchaser succeeds to to the vendor\u2019s position in all respects, including, for example under the Capital Goods Scheme.<\/p>\n<p>Once the arrangement comprises, in substance, the transfer of an ongoing business as opposed to a collection of assets only, then the treatment apply.\u00a0 The concept is broadly similar to that applicable to the Acquired Rights Directive in an employment context. The relief may apply to the transfer of a\u00a0 business which comprises the letting of properties to tenant.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Inter-Group\"><\/span>Inter-Group<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The transfer of assets \u00a0between companies in a VAT group, is not subject to VAT.\u00a0 The group must have elected for a treatment as a VAT group.\u00a0 However, the exemption does not apply to property transfer.\u00a0 Accordingly VAT must be charged, reclaimed et cetera.\u00a0 The transaction may or may not be VAT neutral depending on the ability of the recipient to recover VAT.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Security\"><\/span>Security<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The transfer of an asset \u00a0by way of security upon the \u00a0creation of a mortgage or charge is not a vatable supply.\u00a0 However, its \u00a0sale as part of enforcement is potentially subject to VAT .\u00a0 See generally the section in relation to sales by liquidators mortgages and receivers.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Sale\"><\/span>Sale<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>A sale includes any transfer of an interest, \u00a0even if it is involuntary.\u00a0 Accordingly, a compulsory acquisition either by a legislative vesting order or by way of a forced sale is subject to value added tax.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Option\"><\/span>Option<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The VAT treatment of an option depends on the circumstances.\u00a0 Revenue regard the grant of an option, as potentially a supply of property for VAT purposes. An interest in the property is granted by the option.\u00a0 The position depends on the status of the underlying property. This can lead to complication where the VAT status of the property has changed over time.\u00a0 When the option is exercised, the VAT treatment will be by reference of the position at the date of exercise of the option.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Deposit\"><\/span>Deposit<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>If, on a sale of property, the deposit is paid to the vendor (and not held as stakeholder \/ Security), the vendor must account for VAT on the basis that there has been a supply of a part interest in the property. If the deposit has is refunded because the sale does not proceed, then the VAT paid may be reclaimed. A deposit paid as security is arguably exempt on the basis that it is a security only, even if it is received by the vendor. Where it is received by the solicitor as \u00a0stakeholder, then there is no supply.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Converted\"><\/span>Converted<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>In accordance with general principles, if a developed property, on which VAT has been recovered is converted to use for a private or any other non-vatable purpose, then the VAT \u00a0be repaid. Where a developer takes property from use in a development trade, to use as for private purpose, such as an investment,\u00a0 a VAT charge will apply on the costs, notwithstanding that there is no change of ownership.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Gift\"><\/span>Gift<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>A gift may be a supply, even if there is no consideration. Where a person who is entitled to recover VAT makes a gift, he must charge VAT to the recipient or pay it himself. If the recipient is VAT registered, then he may be entitled to recover VAT for which the donor is accountabl. This \u00a0will usually be the acquisition and development costs.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Supply_Rate_Place\"><\/span>Supply Rate &amp; Place<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The general rate of VAT on sales of property is 13.5 percent.\u00a0 The supply is deemed to take place in the State in which the property is situated, irrespective of the place of establishment or residence of the various party.\u00a0 The vatable supply will generally take place at completion and in accordance with standard contract provision.\u00a0 See above in relation to payment of and forfeiture of deposits.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Insolvency_Officers\"><\/span>Insolvency Officers<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The treatment of the sales of the property by liquidators and receivers is broadly similar, notwithstanding that their legal nature differ significantly. A disposal of property undertaken by a receiver is generally deemed to be undertaken in the course of business. The receiver must register for VAT and account to the Revenue for it. In the case of a receiver, the receiver is usually deemed to be agent of the company.<\/p>\n<p>The liquidator is an officer who controls the company, in the same way as the directors, who has an obligation to wind up its affairs. Accordingly, the supplies are made by the company and are deemed to be in the course of a business, notwithstanding that there is usually a \u00a0winding down of the company\u2019s business.<\/p>\n<p>The receiver or liquidator may opt to tax on behalf of the company. They not be connected with the company. In the case of residential property, the sale is subject to VAT if the company \u00a0in receivership has developed the property or if he is connected to the developer.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Receiver\"><\/span>Receiver<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>If the receiver sells property \u00a0which is exempt from VAT and the option to tax is not exercised there may be claw back of VAT in the usual way under the Capital Goods Scheme.\u00a0 The Revenue take the view that this is a receiver&#8217;s responsibility as it is arises in relation to the disposal. The receiver is liable to account for a VAT on rents received in the same manner as the borrower\/mortgagor.<\/p>\n<p>Revenue has indicated in briefings, that in the case of new exempt letting which gives rise to a claw back under the capital goods scheme the liability is a responsibility of the borrower and not the receiver.\u00a0 It does not \u00a0cover where the receiver has terminated the option to tax.<\/p>\n<p>Revenue takes the view that where a pre- July 2008 lease is surrendered, the receiver may be required to account for VAT on that surrender.\u00a0 Where on sale, the property the borrower&#8217;s waiver of exemption is cancelled, Revenue has taken the view that the cancellation is for the account of the borrower and not the receiver.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"NAMA\"><\/span>NAMA<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>See separate chapters on the establishment origin and rationale of the National Asset Management Agency. \u00a0Where there is a transfer of property to a NAMA such as on \u00a0enforcement, the transfer is commonly exempted from VAT, as either an old property or second-hand property or building.<\/p>\n<p>NAMA is deemed to exercise the option to tax in relation to the same and a self supply for VAT purposes arises on the transfer.\u00a0 If the transfer would be exempt on other grounds, NAMA is not entitled to opt to tax.<\/p>\n<p>If the transfer to NAMA would be exempt, due to not being developed in the last 20 years, NAMA may choose whether to opt for tax or not. The purpose of the rules is to ensure as far as possible that VAT is not a cost to NAMA. Where NAMA cannot opt to tax, no capital goods scheme claw back arises.<\/p>\n<p>Provision is made to ensure that no capital goods scheme claw back arises and transfers of exempt freehold estates created before the new VAT rules \u00a0commenced.<\/p>\n<p>Where a NAMA is obliged to opt to tax, the borrower is not made subject to a capital goods scheme adjustment.<\/p>\n<p>A sale of property by NAMA is subject to the normal rules. Where NAMA sells a property which has not been developed again, it is exempt from VAT.\u00a0 Purchasers must be required to opt to tax in order to avoid a VAT charge by reason of \u00a0claw back. NAMA will redeem to acquire the properties at the base cost at the time of acquisition.<\/p>\n<p>Where a developer of residential property or a connected person, transfers a property to NAMA, NAMA should be connected with the developer.\u00a0 NAMA must charge VAT on future sales of residential properties, regardless of whether or not the property is more than five years old.<\/p>\n<p><!--nextpage--><\/p>\n<h3>VALUE-ADDED TAX CONSOLIDATION ACT<\/h3>\n<h4>Part 11 Immovable Goods (ss. 93-98)<br \/>\n93.<\/h4>\n<h4>Supply of immovable goods (old rules).<\/h4>\n<p>(1)<\/p>\n<p>(a)In this section &#8211;<\/p>\n<p>(i)&#8221;interest&#8221;, in relation to immovable goods &#8211;<br \/>\n(I)subject to clause (II), means an estate or interest in those goods which, when it was created, was for a period of at least 10 years or, if it was for a period of less than 10 years, its terms contained an option for the person in whose favour the interest was created to extend it to a period of at least 10 years<br \/>\n(II)does not include a mortgage,<\/p>\n<p>(ii)a reference to the disposal of an interest includes a reference to the creation of an interest, and<\/p>\n<p>(iii)an interval of the type referred to in section 4(2A) of the repealed enactment shall be deemed to be an interest for the purposes of this section.<\/p>\n<p>(b)Where an interest is created and, at the date of its creation, its terms contain one or more options for the person in whose favour the interest was so created to extend the interest, then that interest shall be deemed to be for the period from the date of creation of that interest to the date that that interest would expire if those options were so exercised.<\/p>\n<p>(c)This section applies to immovable goods &#8211;<\/p>\n<p>(i)which have been developed by or on behalf of the person supplying them, or<\/p>\n<p>(ii)in respect of which the person supplying them was, or would, but for the operation of section 20(2)(c), have been at any time entitled to claim a deduction under Chapter 1 of Part 8 for any tax borne or paid in relation to a supply or development of them.<\/p>\n<p>(2)<\/p>\n<p>(a)<\/p>\n<p>(i)Subject to subparagraph (ii), where an interest in immovable goods was created prior to 1 July 2008 in such circumstances that a reversion on that interest (in this subsection referred to as a &#8220;reversionary interest&#8221;) was created and retained, then any subsequent disposal to another person of the reversionary interest or of an interest derived entirely from that reversionary interest shall be deemed to be a supply of immovable goods to which tax is not charged if, since the date the first-mentioned interest was created, those goods have not been developed by, on behalf of, or to the benefit of, the person making such subsequent disposal.<\/p>\n<p>(ii)This subsection shall not be construed as applying to a disposal of an interest which includes an interval.<\/p>\n<p>(b)For the purposes of this subsection, the Revenue Commissioners may make regulations specifying the circumstances or conditions under which development work on immovable goods is not treated as being on behalf of, or to the benefit of, a person.<\/p>\n<p>(3)<\/p>\n<p>(a)For the purposes of this subsection &#8211;<\/p>\n<p>&#8220;landlord&#8221; has the meaning assigned to it by paragraph (b);<\/p>\n<p>&#8220;post-letting expenses&#8221;, in relation to an interest in immovable goods &#8211;<br \/>\n(i)subject to subparagraph (ii), means expenses which the landlord incurs &#8211;<br \/>\n(I)in carrying out services which the landlord is obliged to carry out under the terms and conditions of the written contract entered into on the disposal of the interest which was chargeable to tax (other than transactions in relation to which the obligation to perform is not reflected in the consideration on which tax was charged on the disposal of that interest)<br \/>\n(II)which directly relate to the collection of rent arising under the contract referred to in clause (I)<br \/>\n(III)which directly relate to a review of rent where the terms and conditions of the contract referred to in clause (I) provide for such a review, or<br \/>\n(IV)which directly relate to the exercise of an option to extend the interest or to exercise a break-clause in relation to that interest where the terms and conditions of the contract referred to in clause (I) provide for such an option or such a break-clause<br \/>\n(ii)do not include any expenses relating to goods or services of the type specified in section 60(2).<\/p>\n<p>(b)Where &#8211;<\/p>\n<p>(i)an interest in immovable goods was disposed of prior to 1 July 2008,<\/p>\n<p>(ii)that disposal was chargeable to tax, and<\/p>\n<p>(iii)the person who acquired that interest is obliged to pay rent to another person (in this subsection referred to as the &#8220;landlord&#8221;) under the terms and conditions laid down in respect of that interest,<\/p>\n<p>then the landlord &#8211;<\/p>\n<p>(I)shall, notwithstanding Part 2, be deemed not to be an accountable person in respect of transactions in relation to those immovable goods other than &#8211;<\/p>\n<p>(A)supplies of those immovable goods on which tax was chargeable in accordance with section 4 of the repealed enactment,<\/p>\n<p>(B)supplies of other goods or services effected for consideration by the landlord, or<\/p>\n<p>(C)post-letting expenses in respect of that interest,<\/p>\n<p>(II)shall not be entitled to deduct tax in respect of transactions in relation to those immovable goods other than &#8211;<\/p>\n<p>(A)supplies of those immovable goods on which tax was chargeable in accordance with section 4 (other than subsection (4) of that section) of the repealed enactment,<\/p>\n<p>(B)supplies of other goods or services effected for consideration by the landlord, or<\/p>\n<p>(C)post-letting expenses in respect of that interest,<\/p>\n<p>(III)shall be deemed, where the landlord is not the person who made the disposal of the interest, to be an accountable person in respect of post-letting expenses in relation to that interest, and<\/p>\n<p>(IV)shall, in relation to those post-letting expenses, be entitled to deduct tax, in accordance with Chapter 1 of Part 8, as if those post-letting expenses were for the purposes of the landlord&#8217;s taxable supplies.<\/p>\n<p>94.<\/p>\n<h4>Supplies of immovable goods (new rules).<\/h4>\n<p>(1)In this section &#8211;<\/p>\n<p>&#8220;completed&#8221;, in respect of immovable goods, means that the development of those goods has reached the state, apart from only such finishing or fitting work that would normally be carried out by or on behalf of the person who will use them, where the goods can effectively be used for the purposes for which the goods were designed, and the utility services required for those purposes are connected to the goods;<\/p>\n<p>&#8220;occupied&#8221;, in respect of immovable goods, means &#8211;<br \/>\n(a)occupied and fully in use following completion, where that use is one for which planning permission for the development of those goods was granted, and<br \/>\n(b)where those goods are let, occupied and fully in such use by the tenant.<\/p>\n<p>(2)Subject to subsections (3), (5), (8) and (9) and section 95(7)(a), tax is not chargeable on the supply of immovable goods &#8211;<\/p>\n<p>(a)that have not been developed within 20 years prior to that supply,<\/p>\n<p>(b)being completed immovable goods, the most recent completion of which occurred more than 5 years prior to that supply, and those goods have not been developed within that 5 year period,<\/p>\n<p>(c)being completed immovable goods that have not been developed since the most recent completion of those goods, where that supply &#8211;<\/p>\n<p>(i)occurs after the immovable goods have been occupied for an aggregate of at least 24 months following the most recent completion of those goods, and<\/p>\n<p>(ii)takes place after a previous supply of those goods on which tax was chargeable and that previous supply &#8211;<\/p>\n<p>(I)took place after the most recent completion of those goods, and<\/p>\n<p>(II)was a transaction between persons who were not connected within the meaning of section 97,<\/p>\n<p>(d)being a building that was completed more than 5 years prior to that supply and on which development was carried out in the 5 years prior to that supply where &#8211;<\/p>\n<p>(i)such development did not and was not intended to adapt the building for a materially altered use, and<\/p>\n<p>(ii)the cost of such development did not exceed 25 per cent of the consideration for that supply,<\/p>\n<p>or<\/p>\n<p>(e)being a building that was completed within the 5 years prior to that supply where &#8211;<\/p>\n<p>(i)the building had been occupied for an aggregate of at least 24 months following that completion,<\/p>\n<p>(ii)that supply takes place after a previous supply of the building on which tax was chargeable and that previous supply &#8211;<\/p>\n<p>(I)took place after that completion of the building, and<\/p>\n<p>(II)was a transaction between persons who were not connected within the meaning of section 97,<\/p>\n<p>and<\/p>\n<p>(iii)if any development of that building occurred after that completion &#8211;<\/p>\n<p>(I)such development did not and was not intended to adapt the building for a materially altered use, and<\/p>\n<p>(II)the cost of such development did not exceed 25 per cent of the consideration for that supply.<\/p>\n<p>(3)Where a person supplies immovable goods to another person and in connection with that supply a taxable person enters into an agreement with that other person or with a person connected with that other person to carry out a development in relation to those immovable goods, then &#8211;<\/p>\n<p>(a)the person who supplies the goods shall, in relation to that supply, be deemed to be a taxable person,<\/p>\n<p>(b)the supply of the goods shall be deemed to be a supply to which section 3 applies, and<\/p>\n<p>(c)subsection (2) does not apply to that supply.<\/p>\n<p>(4)Section 6(1) and (2) does not apply in relation to a person who makes a supply of immovable goods.<\/p>\n<p>(5)Subject to subsection (9), where a taxable person who carries on a business in the State supplies immovable goods to another taxable person who carries on a business in the State in circumstances where that supply would otherwise be exempted because of subsection (2), or section 95(3) or (7)(b), then, notwithstanding those provisions, tax is chargeable on that supply, but only if the supplier and the taxable person to whom the supply is made have, no later than the 15th day of the month after the month during which the supply occurred, entered into an agreement in writing to opt to have tax chargeable on that supply (in this Act referred to as a &#8220;joint option for taxation&#8221;).<\/p>\n<p>(6)Where a joint option for taxation is exercised in accordance with subsection (5), then &#8211;<\/p>\n<p>(a)the person to whom the supply is made shall, in relation to that supply, be an accountable person and shall be liable to pay the tax chargeable on that supply as if that person supplied those goods, and<\/p>\n<p>(b)the person who made the supply shall not be accountable for or liable to pay such tax.<\/p>\n<p>(7)<\/p>\n<p>(a)In this subsection &#8211;<\/p>\n<p>&#8220;owner&#8221; means the accountable person referred to in section 22(3);<\/p>\n<p>&#8220;purchaser&#8221; means the person to whom the immovable goods that are referred to in paragraph (b) are supplied;<\/p>\n<p>&#8220;vendor&#8221; means the person referred to in section 22(3), not being the accountable person referred to in that section, who disposes of the immovable goods that are referred to in paragraph (b).<\/p>\n<p>(b)Where a supply of immovable goods is a supply to which section 22(3) applies and that supply would otherwise be exempted because of subsection (2), or section 95(3) or (7)(b), then, notwithstanding those provisions, tax is chargeable on that supply where &#8211;<\/p>\n<p>(i)the purchaser is a taxable person, and<\/p>\n<p>(ii)the vendor and the purchaser have, no later than the 15th day of the month after the month during which the supply occurred, entered into an agreement in writing to opt to have tax chargeable on that supply.<\/p>\n<p>(c)Where paragraph (b) applies &#8211;<\/p>\n<p>(i)the purchaser shall, in relation to that supply, be an accountable person and shall be liable to pay the tax chargeable on that supply as if that purchaser supplied those goods,<\/p>\n<p>(ii)neither the vendor nor the owner shall be accountable for or liable to pay that tax,<\/p>\n<p>and<\/p>\n<p>(iii)sections 65(4) and 76(2) shall not apply.<\/p>\n<p>(d)Paragraph (b) shall not apply where the purchaser is a person connected (within the meaning of section 97(3)) with either the vendor or the owner.<\/p>\n<p>(e)[deleted]<\/p>\n<p>(8)<\/p>\n<p>(a)In this subsection and in subsection (9) &#8211;<\/p>\n<p>&#8220;recipient&#8221; has the meaning assigned to it by section 16(1)(a).<\/p>\n<p>&#8220;relevant supply&#8221; has the meaning assigned to it by section 16(1)(a).<\/p>\n<p>(b)Where a taxable person supplies immovable goods to another person in circumstances where that supply would otherwise be exempt in accordance with subsection (2), tax shall, notwithstanding that subsection, be chargeable on that supply where &#8211;<\/p>\n<p>(i)the immovable goods are buildings designed as or capable of being used as a dwelling,<\/p>\n<p>(ii)the person who makes that supply is a person who developed the immovable goods in the course of a business of developing immovable goods or a person connected with that person within the meaning of section 97(3), and<\/p>\n<p>(iii)the person who developed those immovable goods was entitled to a deduction under Chapter 1 of Part 8 for tax chargeable to that person in respect of that person&#8217;s acquisition or development of those immovable goods.<\/p>\n<p>(c)In the case of a building to which this subsection would apply if the building were supplied by the taxable person at any time during the capital goods scheme adjustment period for that building &#8211;<\/p>\n<p>(i)section 64(4) and (5) shall not apply, and<\/p>\n<p>(ii)notwithstanding section 64(2), the proportion of total tax incurred that is deductible by that person shall be treated as the initial interval proportion of deductible use.<\/p>\n<p>(d)Where a relevant supply is a supply of immovable goods to which this subsection would apply, the recipient shall be treated thereafter, for the purposes of this subsection in respect of those immovable goods, as if that recipient were a person connected (within the meaning of section 97(3)) to the person who developed those immovable goods.<\/p>\n<p>(9)<\/p>\n<p>(a)Where a relevant supply occurs and that supply would otherwise be exempt in accordance with subsection (2), then &#8211;<\/p>\n<p>(i)the recipient may opt to tax that supply (in this subsection referred to as an &#8220;option for taxation&#8221;), and<\/p>\n<p>(ii)if that option is exercised &#8211;<\/p>\n<p>(I)notwithstanding subsection (2), tax shall be chargeable on that supply, and<\/p>\n<p>(II)subsection (5) shall not apply.<\/p>\n<p>(b)The option for taxation shall not apply to relevant supplies that are exempt in accordance with section 93(2) or 95(3) or (7)(b).<\/p>\n<p>(c)The option for taxation shall be deemed to be exercised by the recipient in relation to a relevant supply which would otherwise be exempt in accordance with subsection (2)(b) to (e).<\/p>\n<p>95.<\/p>\n<h4>Transitional measures for supplies of immovable goods.<\/h4>\n<p>(1)This section applies to &#8211;<\/p>\n<p>(a)immovable goods which are acquired or developed by a taxable person prior to 1 July 2008, being completed immovable goods before 1 July 2008, and have not been disposed of by the taxable person prior to that date, until such time as those goods have been disposed of by that taxable person on or after that date,<\/p>\n<p>(b)an interest in immovable goods within the meaning of section 93 (other than a freehold interest or a freehold equivalent interest) created by a taxable person prior to 1 July 2008 and held by a taxable person on 1 July 2008 and the reversionary interest (within the meaning of section 93(2)) on that interest until that interest is surrendered after 1 July 2008, and<\/p>\n<p>(c)immovable goods being residential property or burial grounds which are acquired or developed by a public body prior to 1 July 2010, being completed immovable goods before 1 July 2010, and have not been disposed of by that public body prior to that date, until such time as those goods have been disposed of by that public body on or after that date.<\/p>\n<p>(2)Where an interest to which subsection (1)(b) applies is surrendered, then, for the purposes of the application of Chapter 2 of Part 8 in respect of the immovable goods concerned &#8211;<\/p>\n<p>(a)the total tax incurred shall include the amount of tax chargeable on the surrender in accordance with subsection (8) and shall not include tax incurred prior to the creation of the surrendered interest, and<\/p>\n<p>(b)the adjustment period shall consist of the number of intervals specified in subsection (12)(c)(iv) and the initial interval shall begin on the date of that surrender.<\/p>\n<p>(3)In the case of a supply of immovable goods to which subsection (1)(a) applies, being completed immovable goods within the meaning of section 94 &#8211;<\/p>\n<p>(a)where the person supplying those goods had no right to deduct under section 12 of the repealed enactment in relation to the tax chargeable on the acquisition or development of those goods prior to 1 July 2008, and<\/p>\n<p>(b)if any subsequent development of those immovable goods occurs on or after 1 July 2008 &#8211;<\/p>\n<p>(i)that development does not and is not intended to adapt the immovable goods for a materially altered use, and<\/p>\n<p>(ii)the cost of that development does not exceed 25 per cent of the consideration for that supply,<\/p>\n<p>then, subject to section 94(3), that supply is not chargeable to tax but a joint option for taxation may be exercised in respect of that supply in accordance with section 94(5) and that tax is payable in accordance with section 94(6).<\/p>\n<p>(4)<\/p>\n<p>(a)Where a person referred to in subsection (1) &#8211;<\/p>\n<p>(i)acquired, developed or has an interest in immovable goods to which this section applies,<\/p>\n<p>(ii)was entitled to deduct tax, in accordance with section 12 of the repealed enactment, on that person&#8217;s acquisition or development of those goods, and<\/p>\n<p>(iii)makes a letting of those immovable goods to which paragraph 11 of Schedule 1 applies,<\/p>\n<p>then that person (in this subsection referred as the &#8220;landlord&#8221;) shall calculate an amount (in this subsection referred to as a &#8220;deductibility adjustment&#8221;) in accordance with the formula set out in paragraph (b) and that amount shall be payable as if it were tax due by that person in accordance with Chapter 3 of Part 9 for the taxable period in which that letting takes place.<\/p>\n<p>(b)The deductibility adjustment shall be calculated in accordance with the formula &#8211;<\/p>\n<p>&nbsp;<\/p>\n<p>where &#8211;<\/p>\n<p>TDis the amount of the tax referred to in paragraph (a) (ii) that the landlord was entitled to deduct,<\/p>\n<p>Yis 20 or, if the interest when it was acquired by the landlord was for a period of less than 20 years, the number of full years in that interest, and<\/p>\n<p>Nis the number of full years since the landlord acquired the interest in the immovable goods referred to in paragraph (a) or, if the goods were developed since that interest was acquired, the number of full years since the most recent development,<\/p>\n<p>but if that N is greater than that Y, the deductibility adjustment shall be deemed to be nil.<\/p>\n<p>(c)Where the letting referred to in paragraph (a) (iii) is a supply to which section 28(4) applies, the receiver or person exercising the power shall calculate the deductibility adjustment in accordance with the formula set out in paragraph (b) and that amount shall be payable by the receiver or person exercising the power as if it were tax due for the taxable period in which that letting takes place.<\/p>\n<p>(5)An assignment or surrender of an interest in immovable goods to which subsection (1)(b) applies is deemed to be a supply of immovable goods for the purposes of this Act for a period of 20 years from the creation of the interest or the most recent assignment of that interest before 1 July 2008, whichever is the later.<\/p>\n<p>(6)Where &#8211;<\/p>\n<p>(a)a person makes a supply of immovable goods to which this section applies,<\/p>\n<p>(b)tax is chargeable on that supply, and<\/p>\n<p>(c)that person was not entitled to deduct all the tax charged to that person on the acquisition or development of those immovable goods,<\/p>\n<p>then that person shall be entitled to make the appropriate adjustment that would apply under section 64(6)(a) as if the capital goods scheme applied to that transaction.<\/p>\n<p>(6A)Where &#8211;<\/p>\n<p>(a)a public body makes a supply of immovable goods referred to in subsection (1)(c),<\/p>\n<p>(b)tax is chargeable on that supply, and<\/p>\n<p>(c)that public body was not entitled to deduct all the tax charged to that public body on the acquisition or development of those immovable goods,<\/p>\n<p>then that public body shall be entitled to make the appropriate adjustment that would apply under section 64(6)(a) as if the capital goods scheme applied to that transaction, but that adjustment shall not exceed the value-added tax chargeable on that supply of those goods.<\/p>\n<p>(7)In the case of an assignment or surrender of an interest in immovable goods referred to in subsection (5) &#8211;<\/p>\n<p>(a)tax shall be chargeable where the person who makes the assignment or surrender was entitled to deduct in accordance with Chapter 1 of Part 8 any of the tax chargeable on the acquisition of that interest, or the development of those immovable goods, and<\/p>\n<p>(b)tax shall not be chargeable where the person who makes the assignment or surrender had no right to deduction under Chapter 1 of Part 8 on the acquisition of that interest or the development of those immovable goods, but a joint option for taxation of that assignment or surrender may be exercised.<\/p>\n<p>(8)<\/p>\n<p>(a)Notwithstanding Chapter 1 of Part 5, the amount on which tax is chargeable on a taxable assignment or surrender to which subsection (7) applies shall be the amount calculated in accordance with the formula set out in paragraph (b) divided by the rate as specified in paragraph (c) or (ca), as appropriate, of section 46(1) expressed in decimal form.<\/p>\n<p>(b)The amount of tax due and payable in respect of a taxable assignment or surrender to which subsection (7) applies is an amount calculated in accordance with the formula &#8211;<\/p>\n<p>&nbsp;<\/p>\n<p>where &#8211;<\/p>\n<p>Tis the total tax incurred referred to in subsection (12)(d) except for the amount of tax charged in respect of any development by the person who makes the assignment or surrender following the acquisition of the interest,<\/p>\n<p>Nis the number of full intervals plus one that remain in the adjustment period referred to in subsection (12)(c) at the time of the assignment or surrender,<\/p>\n<p>Yis the total number of intervals in that adjustment period for the person making the assignment or surrender,<\/p>\n<p>and paragraphs (c) to (e) shall apply to that tax.<\/p>\n<p>(c)Where tax is chargeable in relation to a supply of immovable goods which is a surrender of an interest in immovable goods or an assignment of an interest in immovable goods to &#8211;<\/p>\n<p>(i)an accountable person,<\/p>\n<p>(ii)a Department of State or a local authority, or<\/p>\n<p>(iii)a person who supplies immovable goods of a kind referred to in paragraph (a) of the definition of &#8220;exempted activity&#8221; in section 2 (1), or services of a kind referred to in paragraphs 1, 5(4), 6, 7, 8, 11 and 14(3) of Schedule 1, in the course or furtherance of business,<\/p>\n<p>then &#8211;<\/p>\n<p>(I)the person to whom those goods are supplied shall be accountable for and liable to pay the tax chargeable on that supply,<\/p>\n<p>(II)such tax shall be payable as if it were tax due by that person in accordance with Chapter 3 of Part 9 for the taxable period within which the supply to the person took place, and<\/p>\n<p>(III)for the purposes of subparagraphs (I) and (II), the person to whom the goods are supplied shall be an accountable person and the person who made the surrender or assignment shall not be accountable for or liable to pay such tax.<\/p>\n<p>(d)Where the supply referred to in paragraph (c) is to a Department of State or a local authority, then, notwithstanding anything to the contrary effect in section 14(2), the Department of State or local authority shall be accountable for and liable to pay the tax referred to in that paragraph.<\/p>\n<p>(e)<\/p>\n<p>(i)A surrender or assignment of immovable goods referred to in paragraph (c) shall be treated as a supply of goods made by the person to whom the goods are supplied.<\/p>\n<p>(ii)Subject to subparagraph (iii), on the surrender or assignment of immovable goods referred to in subparagraph (i), the person who makes the surrender or assignment shall issue a document to the person to whom the surrender or assignment is made indicating &#8211;<\/p>\n<p>(I)the value of the interest being surrendered or assigned, and<\/p>\n<p>(II)the amount of tax chargeable on that surrender or assignment.<\/p>\n<p>(iii)Subparagraph (ii) shall not apply where the person who makes the surrender or assignment is obliged to issue a document in accordance with subsection (9)(a) to the person to whom that surrender or assignment is made.<\/p>\n<p>(iv)For the purposes of Chapter 1 of Part 8, that Chapter shall apply as if this paragraph had not been enacted.<\/p>\n<p>(9)<\/p>\n<p>(a)Where an interest in immovable goods referred to in subsection (7) is assigned or surrendered to a taxable person during the adjustment period and tax is payable in respect of that assignment or surrender, then the person who makes the assignment or surrender shall issue a document to the person to whom the interest is being assigned or surrendered containing the following information:<\/p>\n<p>(i)the amount of tax due and payable on that assignment or surrender; and<\/p>\n<p>(ii)the number of intervals remaining in the adjustment period as determined in accordance with subsection (12)(c)(iv).<\/p>\n<p>(b)Where paragraph (a) applies, the person to whom the interest is assigned or surrendered shall be a capital goods owner for the purpose of Chapter 2 of Part 8 in respect of the capital good being assigned or surrendered, and shall be subject to that Chapter and for this purpose &#8211;<\/p>\n<p>(i)the adjustment period shall be the period referred to in subsection (12)(c) as correctly specified on the document referred to in paragraph (a),<\/p>\n<p>(ii)the total tax incurred shall be the amount of tax referred to in subsection (12)(d) as correctly specified in the document referred to in paragraph (a), and<\/p>\n<p>(iii)the initial interval shall be a period of 12 months beginning on the date on which the assignment or surrender occurs.<\/p>\n<p>(10)Where a person cancels an election to be an accountable person in accordance with section 8(2), then, in respect of the immovable goods which were used in supplying the services for which that person made that election, Chapter 2 of Part 8 does not apply if those immovable goods are held by that person on 1 July 2008 and are not further developed after that date.<\/p>\n<p>(11)In the application of Chapter 2 of Part 8 to immovable goods and interests in immovable goods to which this section applies, section 64(2) to (5) shall be disregarded in respect of the person who, on 1 July 2008, owns those immovable goods or holds an interest in those immovable goods, but &#8211;<\/p>\n<p>(a)if that person develops those immovable goods and that development is a refurbishment (within the meaning of Chapter 2 of Part 8) that is completed on or after 1 July 2008, section 64(2) to (5) shall not be disregarded in respect of that refurbishment,<\/p>\n<p>(b)if, on or after 23 February 2010, that person &#8211;<\/p>\n<p>(i)first uses those immovable goods (in this subsection referred to as the &#8220;first use&#8221;), or<\/p>\n<p>(ii)changes the use of those immovable goods (in this subsection referred to as the &#8220;changed use&#8221;),<\/p>\n<p>and the first use, or the changed use, as the case may be, is a use of those immovable goods for a purpose other than the provision of a letting of the type referred to in paragraph 11(1) of Schedule 1, then section 64(4)(a) to (d) shall not be disregarded for the remainder of the adjustment period applicable to those immovable goods.<\/p>\n<p>(12)For the purposes of applying Chapter 2 of Part 8 to immovable goods or interests in immovable goods to which this section applies &#8211;<\/p>\n<p>(a)any interest in immovable goods to which this section applies shall be treated as a capital good,<\/p>\n<p>(b)any person who has an interest in immovable goods to which this section applies shall be treated as a capital goods owner, but shall not be so treated to the extent that the person has a reversionary interest in those immovable goods if those goods were not developed by, on behalf of, or to the benefit of, that person,<\/p>\n<p>(c)the period to be treated as the adjustment period in respect of immovable goods or interests in immovable goods to which this section applies is &#8211;<\/p>\n<p>(i)in the case of the acquisition of the freehold interest or freehold equivalent interest in those immovable goods, 20 years from the date of that acquisition,<\/p>\n<p>(ii)in the case of the creation of an interest in those immovable goods, 20 years or, if the interest when it was created was for a period of less than 20 years, the number of full years in that interest when created, whichever is the shorter,<\/p>\n<p>(iii)in the case of the assignment or surrender of an interest in immovable goods prior to 1 July 2008, the period remaining in that interest at the time of the assignment or surrender of that interest or 20 years, whichever is the shorter, or<\/p>\n<p>(iv)in the case of &#8211;<\/p>\n<p>(I)the surrender or first assignment of an interest in immovable goods on or after 1 July 2008, the number of full years remaining in the adjustment period as determined in accordance with subparagraphs (ii) and (iii), plus one, or<\/p>\n<p>(II)the second or subsequent assignment of an interest in immovable goods after 1 July 2008, the number of full intervals remaining in the adjustment period as determined in accordance with clause (I), plus one,<\/p>\n<p>and this number shall thereafter be the number of intervals remaining in the adjustment period,<\/p>\n<p>but where the immovable goods have been developed since the acquisition of those immovable goods or the creation of that interest, 20 years from the date of the most recent development of those goods (other than a development which is a refurbishment within the meaning of section 63(1)),<\/p>\n<p>(d)the amount of tax charged, or the amount of tax that would have been chargeable but for the application of section 20(2)(c) or 56, to the person treated as the capital goods owner on the acquisition of, or development of, the capital goods shall be treated as the total tax incurred,<\/p>\n<p>(e)the total tax incurred divided by the number of intervals in the adjustment period referred to in paragraph (c) shall be treated as the base tax amount,<\/p>\n<p>(f)each year in the adjustment period referred to in paragraph (c) shall be treated as an interval,<\/p>\n<p>(g)the first 12 months of the adjustment period referred to in paragraph (c) shall be treated as the initial interval,<\/p>\n<p>(h)the second year of the adjustment period referred to in paragraph (c) shall be treated as the second interval but, in the case of an interest which is assigned or surrendered on or after 1 July 2008, the second interval of the adjustment period shall have the meaning assigned to it by Chapter 2 of Part 8,<\/p>\n<p>(i)each year following the second year in the adjustment period referred to in paragraph (c) shall be treated as a subsequent interval,<\/p>\n<p>(j)the amount which shall be treated as the total reviewed deductible amount shall be the amount of the total tax incurred as provided for in paragraph (d) less &#8211;<\/p>\n<p>(i)any amount of the total tax incurred which was charged to the person treated as the capital goods owner but which that owner was not entitled to deduct in accordance with Chapter 1 of Part 8,<\/p>\n<p>(ii)any amount accounted for in accordance with section 12D(4) of the repealed enactment by the person treated as the capital goods owner in respect of a transfer of the goods to that owner prior to 1 July 2008,<\/p>\n<p>(iii)any tax payable in respect of those capital goods in accordance with section 19(1)(f), or section 4(3)(a) of the repealed enactment, by the person treated as the capital goods owner, and<\/p>\n<p>(iv)where an adjustment of deductibility has been made in respect of the capital good in accordance with subsection (4)(a) or section 4(3)(ab) of the repealed enactment, the amount &#8220;TD&#8221; in the formula set out in subsection (4)(b),<\/p>\n<p>(k)the amount referred to in paragraph (d) less the amount referred to in paragraph (j) shall be treated as the non-deductible amount,<\/p>\n<p>and for the purposes of applying paragraphs (f), (h) and (i) &#8220;year&#8221; means each 12 month period in the adjustment period, the first of which begins on the first day of the initial interval referred to in paragraph (g).<\/p>\n<p>(13)<\/p>\n<p>(a)Subject to paragraph (b), where a taxable person acquires immovable goods on or after 1 July 2007, then, notwithstanding subsection (11), section 64(2) shall apply and, notwithstanding subsection (12)(j), the total reviewed deductible amount shall have the meaning assigned to it by Chapter 2 of Part 8.<\/p>\n<p>(b)Paragraph (a) does not apply where a taxable person has made an adjustment in accordance with section 61(7) in respect of those goods.<\/p>\n<p>96.<\/p>\n<h4>Waiver of exemption under old rules.<\/h4>\n<p>(1)In this section &#8220;waiver&#8221; means a waiver of exemption from tax under section 7(1) of the repealed enactment.<\/p>\n<p>(2)A waiver shall cease to have effect at the end of the taxable period during which it is cancelled in accordance with subsection (3).<\/p>\n<p>(3)Provision may be made by regulations for the cancellation, at the request of a person or in accordance with subsection (8) or (12), of a waiver by the person and for the payment by that person to the Revenue Commissioners as a condition of cancellation of such sum (if any) as when added to the total amount of tax (if any) due by him or her in accordance with Chapter 3 of Part 9 in relation to the supply of services by him or her to which the waiver applied is equal to the total of &#8211;<\/p>\n<p>(a)the amount of tax deducted by the person in accordance with Chapter 1 of Part 8 in respect of tax borne or paid in relation to the supply of such services,<\/p>\n<p>(b)the amount of tax deducted by the person in accordance with section 12 of the repealed enactment, prior to the commencement of the letting of the immovable goods to which the waiver relates, in respect of or in relation to his or her acquisition of his or her interest in, or his or her development of, those immovable goods,<\/p>\n<p>(c)the amount of tax that would have been deductible by the person in accordance with section 12 of the repealed enactment if tax had been chargeable on the transfer of ownership of goods to him or her in respect of which section 20(2)(c) was applied, and those goods were used by him or her in the supply of such services, and<\/p>\n<p>(d)the amount of tax that would have been deductible by that person in accordance with section 12 of the repealed enactment if &#8211;<\/p>\n<p>(i)tax had been chargeable on the supply to that person of goods or services in respect of which paragraph 7(7) of Schedule 2 was applied, and<\/p>\n<p>(ii)those goods or services were used, in relation to the supply of services to which the waiver applied, by the person.<\/p>\n<p>(4)Where there is a waiver in respect of the supply of a service, tax shall be charged in relation to the person making the waiver during the period for which the waiver has effect as if the service to which the waiver applies was not specified in Schedule 1.<\/p>\n<p>(5)Where a person cancelled his or her waiver before 1 July 2008, then, for the purposes of applying Chapter 2 of Part 8, the adjustment period (within the meaning of section 63(1) or, as the context may require, the period to be treated as the adjustment period in accordance with section 95(12)) in relation to any capital good the tax chargeable on that person&#8217;s acquisition or development of which that person was obliged to take into account when that person made that cancellation, shall be treated as if it ended on the date on which that cancellation had effect.<\/p>\n<p>(6)Subsections (6) to (12) apply to an accountable person (in those subsections referred to as a &#8220;landlord&#8221;) &#8211;<\/p>\n<p>(a)who has a waiver, and<\/p>\n<p>(b)who had not cancelled the waiver before 1 July 2008.<\/p>\n<p>(7)For the purposes of applying Chapter 2 of Part 8, the adjustment period (within the meaning of section 63(1) or, as the context may require, the period to be treated as the adjustment period in accordance with section 95 (12)) in relation to a capital good the tax chargeable on the landlord&#8217;s acquisition or development of which that landlord was obliged to take into account when that landlord cancelled his or her waiver, shall end on the date on which that cancellation had effect.<\/p>\n<p>(8)Where a landlord makes or has made a letting and, were that letting not already subject to a waiver, that letting would be one in respect of which the landlord would not, because of section 97(2), be entitled to exercise a landlord&#8217;s option to tax in accordance with section 97, then the landlord&#8217;s waiver of exemption shall, subject to subsection (9), immediately cease to apply to that letting, and &#8211;<\/p>\n<p>(a)that landlord shall pay an amount, as if it were tax due by that person in accordance with Chapter 3 of Part 9 for the taxable period in which the waiver ceases to apply to that letting, equal to the sum (if any) which would be payable in accordance with subsection (3) in respect of the cancellation of a waiver as if that landlord&#8217;s waiver applied only to the immovable goods or the interest in immovable goods subject to that letting to which the waiver has ceased to apply, and<\/p>\n<p>(b)the amounts taken into account in calculating that sum (if any) shall be disregarded in any future cancellation of that waiver.<\/p>\n<p>(9)<\/p>\n<p>(a)Subject to paragraph (c), where a landlord has a letting to which subsection (8) would otherwise apply, that subsection shall not apply while, on the basis of the letting agreement in place, the tax that the landlord will be required to account for, in equal amounts for each taxable period, in respect of the letting during the next 12 months is not less than the amount calculated at that time in accordance with the formula set out in subsection (10).<\/p>\n<p>(b)Where the conditions in paragraph (a) fail to be satisfied because of a variation in the terms of the lease or otherwise or if the tax paid at any time in respect of the letting is less than the tax payable, this subsection shall cease to apply.<\/p>\n<p>(c)This subsection applies to a letting referred to in paragraph (a) &#8211;<\/p>\n<p>(i)where a landlord has a waiver in place on 18 February 2008 and &#8211;<\/p>\n<p>(I)on 1 July 2008 that letting had been in place since 18 February 2008, or<\/p>\n<p>(II)the immovable goods subject to the letting are owned by that landlord on 18 February 2008 and are in the course of development by or on behalf of that landlord on that day,<\/p>\n<p>or<\/p>\n<p>(ii)where a landlord holds an interest, other than a freehold interest or a freehold equivalent interest in the immovable goods subject to the letting, acquired between 18 February 2008 and 30 June 2008 from a person with whom the landlord is not connected, within the meaning of section 97, in a transaction which was treated as a supply of goods in accordance with section 4 of the repealed enactment.<\/p>\n<p>(10)The formula to be used for the purposes of subsection (9) is &#8211;<\/p>\n<p>&nbsp;<\/p>\n<p>where &#8211;<\/p>\n<p>Ais the amount of tax that would be taken into account for the purposes of subsection (3) in respect of the acquisition or development of the immovable goods, if the waiver were being cancelled at the time referred to in subsection (9),<\/p>\n<p>Bis the amount of tax chargeable on the consideration by the landlord in respect of the letting of those immovable goods and paid in accordance with Chapter 3 of Part 9 that would be taken into account for the purposes of subsection (3) if the waiver were being cancelled at that time and that letting were the only one to which that waiver applied, and<\/p>\n<p>Yis 11, or the number of full years since the later of &#8211;<\/p>\n<p>(i)the date of the first letting of those goods, and<\/p>\n<p>(ii)the date on which the landlord waived exemption,<\/p>\n<p>where that number is less than 11 years.<\/p>\n<p>(11)Where &#8211;<\/p>\n<p>(a)a landlord has a letting to which subsection (8) or (9) applies,<\/p>\n<p>(b)that landlord becomes a person in a group within the meaning of section 15 on or after 1 July 2008, and<\/p>\n<p>(c)the person to whom that letting is made is a person in that group,<\/p>\n<p>then the person referred to in section 15(1)(a)(i) in respect of that group shall be liable to pay the amount as specified in subsection (8)(a) as if it were tax due in accordance with Chapter 3 of Part 9 in the taxable period during which that landlord became a person in that group.<\/p>\n<p>(12)<\/p>\n<p>(a)In this subsection &#8220;relevant immovable goods&#8221; means immovable goods the tax chargeable on the acquisition or development of which a landlord would be obliged to take into account in accordance with subsection (3) in relation to the cancellation of that landlord&#8217;s waiver.<\/p>\n<p>(b)This subsection applies where &#8211;<\/p>\n<p>(i)on or after 3 June 2009, a landlord has an interest in relevant immovable goods,<\/p>\n<p>(ii)the landlord ceases, whether as a result of disposing of such goods or otherwise, to have an interest in any such goods, and<\/p>\n<p>(iii)on the date when that landlord ceases to have any such interest, that landlord&#8217;s waiver has not been cancelled in accordance with subsection (3).<\/p>\n<p>(c)Where this subsection applies &#8211;<\/p>\n<p>(i)the landlord&#8217;s waiver of exemption shall be treated as if it were cancelled on the date referred to in paragraph (b)(iii), and<\/p>\n<p>(ii)that landlord shall pay an amount, being the amount payable in accordance with subsection (3) in respect of the cancellation of that waiver, as if it were tax due by that landlord for the taxable period in which the waiver of exemption is so treated as cancelled.<\/p>\n<p>97.<\/p>\n<h4>Option to tax letting of immovable goods.<\/h4>\n<p>(1)<\/p>\n<p>(a)<\/p>\n<p>(i)Tax shall be chargeable in accordance with this Act on the supply of a service to which paragraph 11 of Schedule 1 relates (in this section referred to as a &#8220;letting&#8221;) where, subject to subsections (2) and (4), the supplier (in this section referred to as a &#8220;landlord&#8221;) opts to make that letting so chargeable.<\/p>\n<p>(ii)A landlord who exercises such option (in this Act referred to as a &#8220;landlord&#8217;s option to tax&#8221;) shall, notwithstanding section 6(1) and (2), be an accountable person and liable to account for the tax on that letting in accordance with this Act, and that letting shall not be a supply to which section 52 applies.<\/p>\n<p>(b)Where a taxable person is entitled to deduct tax on the acquisition or development of immovable goods on the basis that the goods will be used for the purpose of a letting or lettings in respect of which a landlord&#8217;s option to tax will apply, then &#8211;<\/p>\n<p>(i)the person shall be treated as having exercised the landlord&#8217;s option to tax in respect of any lettings of those immovable goods, and<\/p>\n<p>(ii)that option shall be deemed to continue in place until that person makes a letting in respect of which neither of the conditions of paragraph (c) is fulfilled.<\/p>\n<p>(c)A landlord&#8217;s option to tax in respect of a letting is exercised by &#8211;<\/p>\n<p>(i)a provision in writing in a letting agreement between the landlord and the person to whom the letting is made (in this section referred to as a &#8220;tenant&#8221;) that tax is chargeable on the rent, or<\/p>\n<p>(ii)the issuing by the landlord of a document to the tenant giving notification that tax is chargeable on the letting.<\/p>\n<p>(d)A landlord&#8217;s option to tax in respect of a letting is terminated &#8211;<\/p>\n<p>(i)in the case of an option exercised in accordance with paragraph (b), by making a letting of the immovable goods referred to in that paragraph in respect of which neither of the conditions of paragraph (c) is fulfilled,<\/p>\n<p>(ii)in the case of an option exercised in accordance with paragraph (c), by &#8211;<\/p>\n<p>(I)an agreement in writing between the landlord and tenant that the option is terminated and specifying the date of termination which shall not be earlier than the date of that agreement, or<\/p>\n<p>(II)the delivery to the tenant of a document giving notification that the option has been terminated and specifying the date of termination which shall not be earlier than the date that notification is received by the tenant,<\/p>\n<p>(iii)where the landlord and tenant become connected persons,<\/p>\n<p>(iv)where the landlord or a person connected with the landlord occupies the immovable goods that are subject to that letting whether that person occupies those goods by way of letting or otherwise, or<\/p>\n<p>(v)where the immovable goods that are subject to that letting are used or to be used for residential purposes within the meaning of subsection (4).<\/p>\n<p>(2)<\/p>\n<p>(a)Subject to paragraphs (b) and (c), a landlord may not opt to tax a letting &#8211;<\/p>\n<p>(i)where the landlord and the tenant in respect of that letting are connected persons, or<\/p>\n<p>(ii)where the landlord, whether or not connected to the tenant, or a person connected to the landlord, occupies the immovable goods that are subject to that letting whether that landlord or that person occupies those goods by way of letting or otherwise.<\/p>\n<p>(b)<\/p>\n<p>(i)Subject to subparagraph (ii), paragraph (a)(i) and subsection (1)(d)(iii) shall not apply where the immovable goods which are the subject of the letting are used for the purposes of supplies or activities which entitle the tenant to deduct at least 90 per cent of the tax chargeable on the letting in accordance with Chapter 1 of Part 8.<\/p>\n<p>(ii)Where a landlord has exercised a landlord&#8217;s option to tax in respect of a letting to which paragraph (a) (i) would have applied but for subparagraph (i), paragraph (a)(i) shall apply from the end of the first accounting year in which the goods are used for the purposes of supplies or activities which entitle the tenant to deduct less than 90 per cent of the said tax chargeable.<\/p>\n<p>(c)<\/p>\n<p>(i)Subject to subparagraph (ii), paragraph (a)(ii) and subsection (1)(d)(iv) shall not apply where the occupant (being any person including the landlord referred to in that paragraph or that subsection) uses the immovable goods which are the subject of the letting for the purpose of making supplies which entitle that occupant to deduct, in accordance with Chapter 1 of Part 8, at least 90 per cent of all tax chargeable in respect of goods or services used by that occupant for the purpose of making those supplies.<\/p>\n<p>(ii)Where a landlord has exercised a landlord&#8217;s option to tax in respect of a letting to which paragraph (a)(ii) would have applied but for subparagraph (i), paragraph (a)(ii) shall apply from the end of the first accounting year in which the immovable goods are used for the purpose of making supplies which entitle that occupant to deduct less than 90 per cent of the said tax chargeable.<\/p>\n<p>(3)<\/p>\n<p>(a)In this subsection &#8211;<\/p>\n<p>&#8220;control&#8221;, in the case of a body corporate or in the case of a partnership, has the meaning assigned to it by section 4(2);<\/p>\n<p>&#8220;relative&#8221; means a brother, sister, ancestor or lineal descendant.<\/p>\n<p>(b)For the purposes of this section, any question of whether a person is connected with another person shall be determined in accordance with the following:<\/p>\n<p>(i)a person is connected with an individual if that person is the individual&#8217;s spouse or civil partner, or is a relative, or the spouse or civil partner of a relative, of the individual or of the individual&#8217;s spouse or civil partner;<\/p>\n<p>(ii)a person is connected with any person with whom he or she is in partnership, and with the spouse or civil partner or a relative of any individual with whom he or she is in partnership;<\/p>\n<p>(iii)subject to clauses (IV) and (V) of subparagraph (v), a person is connected with another person if he or she has control over that other person, or if the other person has control over the first-mentioned person, or if both persons are controlled by another person or persons;<\/p>\n<p>(iv)a body of persons is connected with another person if that person, or persons connected with him or her, have control of that body of persons, or the person and persons connected with him or her together have control of it;<\/p>\n<p>(v)a body of persons is connected with another body of persons &#8211;<\/p>\n<p>(I)if the same person has control of both or a person has control of one and persons connected with that person or that person and persons connected with that person have control of the other,<\/p>\n<p>(II)if a group of 2 or more persons has control of each body of persons and the groups either consist of the same persons or could be regarded as consisting of the same persons by treating (in one or more cases) a member of either group as replaced by a person with whom he or she is connected,<\/p>\n<p>(III)if both bodies of persons act in pursuit of a common purpose,<\/p>\n<p>(IV)if any person or any group of persons or groups of persons having a reasonable commonality of identity have or had the means or power, either directly or indirectly, to determine the activities carried on or to be carried on by both bodies of persons, or<\/p>\n<p>(V)if both bodies of persons are under the control of any person or group of persons or groups of persons having a reasonable commonality of identity;<\/p>\n<p>(vi)a person in the capacity as trustee of a settlement is connected with &#8211;<\/p>\n<p>(I)any person who in relation to the settlement is a settlor, or<\/p>\n<p>(II)any person who is a beneficiary under the settlement.<\/p>\n<p>(4)A landlord&#8217;s option to tax may not be exercised in respect of all or part of a house or apartment or other similar establishment to the extent that those immovable goods are used or to be used for residential purposes, including any such letting &#8211;<\/p>\n<p>(a)governed by the Residential Tenancies Act 2004,<\/p>\n<p>(b)governed by the Housing (Rent Books) Regulations 1993 (S.I. No. 146 of 1993),<\/p>\n<p>(c)governed by section 10 of the Housing Act 1988,<\/p>\n<p>(d)of a dwelling to which Part II of the Housing (Private Rented Dwellings) Act 1982 applies, or<\/p>\n<p>(e)of accommodation which is provided as a temporary dwelling for emergency residential purposes.<\/p>\n<p>(5)A landlord&#8217;s option to tax, once exercised, shall immediately cease to have effect to the extent that the immovable goods which are the subject of the letting to which the option applies come to be used for residential purposes which fall within subsection (4).<\/p>\n<p>98.<\/p>\n<h4>Valuation of an interest in immovable goods.<\/h4>\n<p>(1)In this section &#8211;<\/p>\n<p>&#8220;interest&#8221;, in relation to immovable goods, shall be construed in accordance with section 93(1);<\/p>\n<p>&#8220;open market value&#8221; has the meaning assigned to it by section 36.<\/p>\n<p>(2)<\/p>\n<p>(a)Where the Revenue Commissioners wish to ascertain the open market value of an interest in immovable goods, they may authorise a person to inspect the immovable goods and to report to them the open market value of that interest for the purposes of this Act, and a person having custody or possession of those goods shall permit the person so authorised to inspect the goods at such reasonable times as the Commissioners consider necessary.<\/p>\n<p>(b)Where the Revenue Commissioners require a valuation to be made by a person named by them, the costs of that valuation shall be defrayed by the Commissioners.<\/p>\n<!--themify_builder_content-->\n<div id=\"themify_builder_content-28839\" data-postid=\"28839\" class=\"themify_builder_content themify_builder_content-28839 themify_builder tf_clear\">\n    <\/div>\n<!--\/themify_builder_content-->\n","protected":false},"excerpt":{"rendered":"<p>Going Concern The general exemption for the transfer of a business as a growing concern applies to transfers of freehold property. This includes the grant of long leaseholds which are equivalent to\u00a0 freehold transfers. \u00a0Under the transfer as a going concern treatment, the purchaser succeeds to to the vendor\u2019s position in all respects, including, for [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"footnotes":""},"categories":[390],"tags":[],"_links":{"self":[{"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/posts\/28839"}],"collection":[{"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/comments?post=28839"}],"version-history":[{"count":7,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/posts\/28839\/revisions"}],"predecessor-version":[{"id":34444,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/posts\/28839\/revisions\/34444"}],"wp:attachment":[{"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/media?parent=28839"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/categories?post=28839"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/tags?post=28839"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}