Finance Act, 1994
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Chapter III Urban Renewal Reliefs: Termination of Existing Scheme in Certain Areas and Certain Other Matters | ||
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Amendment of Chapter V (Urban Renewal: Relief from Income Tax and Corporation Tax) of Part I of Finance Act, 1986. |
35.—(1) Chapter V of Part I of the Finance Act, 1986 , is hereby amended— | |
(a) in section 42— | ||
(i) in subsection (1)— | ||
(I) by the substitution of the following definition for the definition (including the proviso thereto) of “qualifying period” (as amended by section 30 (1) (a) (i) of the Finance Act, 1993 ): | ||
“‘qualifying period’ means— | ||
(a) the period commencing on the 23rd day of October, 1985, and ending on the 31st day of July, 1994, or | ||
(b) where section 41 (2) applies, the specified period;”, | ||
and | ||
(II) by the insertion of the following definition after the definition of “qualifying premises”: | ||
“‘the relevant local authority’, in relation to the construction of a qualifying premises, 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;”, | ||
and | ||
(ii) by the addition of the following subsections after subsection (7): | ||
“(8) (a) Where, in relation to the construction of a qualifying premises the site of which is wholly within a designated area other than the Custom House Docks Area, the relevant local authority gives a certificate in writing, on or before the 23rd day of February, 1994, to the person constructing the qualifying premises stating that it is satisfied that not less than 15 per cent. of the total cost of construction of the qualifying premises had been incurred prior to the 26th day of January, 1994, any capital expenditure incurred in respect of work on the construction of the qualifying premises which is carried out in the period from the 1st day of August, 1994, to the 31st day of December, 1994 (hereafter in this section referred to as ‘the balance of capital expenditure’) shall be treated, for the purposes of subsection (2), as having been incurred in the qualifying period. | ||
(b) Paragraph (a) shall apply and have effect notwithstanding subsection (7) or any other provision of the Tax Acts as to the time when any capital expenditure is, or is to be treated as, incurred. | ||
(c) In considering whether to give such a certificate as is 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 of time limit for completion of developments’ which were issued by the Department of the Environment on the 27th day of January, 1994. | ||
(9) Where, by reason of subsection (2), an allowance is given under Chapter II of Part XV, or Chapter I of Part XVI, of the Income Tax Act, 1967 , in respect of the balance of capital expenditure, no allowance shall be given in respect of that expenditure under the said Chapter II or the said Chapter I by virtue of section 41 of the Finance Act, 1994.”, | ||
(b) by the deletion of section 43, | ||
(c) in section 44— | ||
(i) in subsection (1) (a)— | ||
(I) by the substitution of the following definition for the definition (including the proviso thereto) of “qualifying period” (as amended by section 30 (1) (b) of the Finance Act, 1993 ): | ||
“‘qualifying period’ means— | ||
(i) the period commencing on the 23rd day of October, 1985, and ending on the 31st day of July, 1994, or | ||
(ii) where section 41 (2) applies, the specified period;”, | ||
and | ||
(II) by the insertion of the following definition after the definition of “refurbishment”: | ||
“‘the relevant local authority’, in relation to the construction or refurbishment of a qualifying premises, 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.”, | ||
(ii) in subsection (1) (b)— | ||
(I) by the deletion of “as it applies to expenditure to which section 29 of the Finance Act, 1983 , applies,”, | ||
(II) by the substitution of the following subparagraph for subparagraph (i): | ||
“(i) in the definition of ‘qualifying premises’ in the said section 23— | ||
(I) the reference in paragraph (ii) (I) to ‘75 square metres’ were a reference to ‘90 square metres’, and | ||
(II) paragraph (iv) were deleted, and”, | ||
and | ||
(III) by the insertion of the following proviso to that subsection: | ||
“Provided that, as respects the application, for the purposes of this section, of the said provisions of the said section 23 in the case of the refurbishment of a qualifying premises the site of which is wholly within the Custom House Docks Area, the reference in paragraph (ii) (I) of the definition of ‘qualifying premises’ in the said section 23 to ‘75 square metres’ shall be construed as a reference to ‘125 square metres’.”, | ||
(iii) by the insertion of the following proviso to subsection (1) (c): | ||
“Provided that where, in relation to the construction or refurbishment of a qualifying premises the site of which is wholly within a designated area other than the Custom House Docks Area, the relevant local authority gives a certificate in writing, on or before the 23rd day of February, 1994, to the person constructing or refurbishing the qualifying premises stating that it is satisfied that not less than 15 per cent. of the total cost of construction or refurbishment of the qualifying premises had been incurred prior to the 26th day of January, 1994, any expenditure incurred in respect of work on the construction or refurbishment of the qualifying premises which is carried out in the period from the 1st day of August, 1994, to the 31st day of December, 1994 (hereafter in this subsection referred to as ‘the balance of expenditure’) shall be treated as having been incurred in the qualifying period.”, | ||
(iv) by the addition of the following paragraphs after paragraph (e) of subsection (1): | ||
“(f) In considering whether to give such a certificate as is referred to in the proviso to paragraph (c), the relevant local authority shall have regard only to the guidelines in relation to the giving of such certificates entitled ‘Extension of time limit for completion of developments’ which were issued by the Department of the Environment on the 27th day of January, 1994. | ||
(g) Where, by reason of the proviso to paragraph (c), a deduction is given under this section in respect of the balance of expenditure, no deduction shall be given in respect of that expenditure under section 46 of the Finance Act, 1994.”, | ||
and | ||
(v) by the insertion of the following proviso to subsection (2): | ||
“Provided that, where the individual proves that there has been incurred by that individual qualifying expenditure on the refurbishment of a qualifying premises the site of which is wholly within the Custom House Docks Area, the aforesaid reference to 5 per cent. shall be construed as a reference to 10 per cent.”, | ||
and | ||
(d) in section 45— | ||
(i) in subsection (1) (a)— | ||
(I) by the substitution, in the definition of “qualifying lease”, of “granted in the qualifying period, or within the period of two years from the day next after the end of the qualifying period,” for “granted in the qualifying period”, and | ||
(II) by the substitution of the following definition for the definition (including the proviso thereto) of “qualifying period” (as amended by section 30 (1) (c) (i) (II) of the Finance Act, 1993 ): | ||
“‘qualifying period’ means— | ||
(i) the period commencing on the 23rd day of October, 1985, and ending on the 31st day of July, 1994, or | ||
(ii) where section 41 (2) applies, the specified period;”, | ||
(ii) by the substitution, in subsection (1) (c) (inserted by section 21 (1) (a) (iii) of the Finance Act, 1991 ), of “by that person or any other person” for “by that person or any person connected with that person”, and | ||
(iii) by the insertion of the following additional proviso to subsection (2): | ||
“Provided also that where a person is entitled under the provisions of this section to a further deduction on account of rent in respect of a qualifying premises the person shall not be entitled to any deduction on account of that rent under section 42 of the Finance Act, 1994.”. | ||
(2) (a) Paragraph (a), subparagraphs (i), (iii) and (iv) of paragraph (c), and subparagraphs (i) and (iii) of paragraph (d), of subsection (1) shall be deemed to have come into operation as on and from the 26th day of January, 1994. | ||
(b) Subparagraphs (ii) (III) and (v) of paragraph (c) of subsection (1) shall apply and have effect as respects expenditure incurred on or after the 26th day of January, 1994. | ||
(c) Paragraph (d) (ii) of subsection (1) shall take effect as respects rent payable in relation to any qualifying premises under a qualifying lease entered into on or after the 11th day of April, 1994. |