TAXES CONSOLIDATION ACT, 1997

• (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. [FA97 s155]

338.—(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;

“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”, “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—

• (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 334(2), 335(4) or 336(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 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.

• (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) 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

339 Interpretation (Chapter 3). [FA94 s38(1), (3) and (4); FA95 s35(1)(a); FA97 s26(a)]

339.—(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 30th day of June, 2000;

“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 subsection (2)(a) applies, means the council of a county or the corporation of a county or other borough or, where appropriate, the urban district council, 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” to ending on the 31st day of July, 1997, shall be construed as a reference to 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.

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

340 Designated areas, designated streets and enterprise areas. [FA94 s39; FA95 s35(1)(b); FA97 s26(b)]

340.—(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.

• (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 the 1st day of August, 1994, or end after the 30th day of June, 2000.

• (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. [FA94 s40; FA95 s35(1)(c)]

341.—(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:

• “(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

• (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. [FA94 s41; FA95 s35(1)(d)]

342.—(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—

• (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 or refurbishment of a qualifying premises only in so far as that expenditure is incurred in the qualifying period.

• (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. [FA94 s41A; FA95 s35(1)(e) ]

343.—(1) In this section—

“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) which has been approved for financial assistance under a scheme administered by Forfás, Forbairt or the Industrial Development Agency (Ireland), 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 Forbairt or the Industrial Development Agency (Ireland), as may be appropriate), 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) and (9), 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 shall be of an amount equal to 25 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:

• “(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.

• (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.

344 Capital allowances in relation to construction or refurbishment of certain multi-storey car parks. [FA94 s41B; FA95 s35(1)(f); FA96 s26(1)]

344.—(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 the 30th day of June, 1998;

“the relevant local authority”, in relation to the construction or refurbishment of a multi-storey car park, means—

• (a) the corporation of a county or other borough or, where appropriate, the urban district council, or

• (b) in respect of the administrative county of Dún Laoghaire-Rathdown, the administrative county of Fingal or the administrative county of South Dublin, the council of the county,

in whose functional area the multi-storey car park is situated.

• (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 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.

• (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 multi-storey car park—

• (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).

• (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. [FA90 s33(1) and (2)(a); FA94 s42; FA95 s35(1)(g); FA97 s26(c) and s27]

345.—(1) In this section—

“qualifying lease” means, subject to subsection (8), a lease in respect of a qualifying premises granted—

• (a) in the qualifying period in the case of a qualifying premises which is a building or structure to which section 339(2)(a) refers, or

• (b) in the qualifying period, or within the period of one year from the day next after the end of the qualifying period, in the case of any other qualifying premises,

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, 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.

• (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—

• (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.

• (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.