Finance Act, 1998
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Amendment of section 4 (special provisions in relation to the supply of immovable goods) of Principal Act. |
106.— Section 4 of the Principal Act is hereby amended by the insertion of the following subsections after subsection (8) (inserted by the Act of 1997): | |
“(9) Where a disposal of an interest in immovable goods is chargeable to tax and where those goods have not been developed since the date of the disposal of that interest (hereafter referred to in this subsection as ‘the taxable interest’) any disposal of an interest in those goods after that date by a person other than the person who acquired the taxable interest shall, for the purposes of this Act, be deemed to be a supply of immovable goods to which subsection (6) applies. | ||
(10) (a) Where a disposal of an interest in immovable goods is chargeable to tax and the person who acquires that interest is obliged to pay rent to another person (hereafter referred to in this subsection as ‘the landlord’) under the terms and conditions laid down in respect of that interest, the landlord— | ||
(i) shall, notwithstanding the provisions of section 8, be deemed not to be a taxable person in respect of transactions in relation to those immovable goods other than— | ||
(I) supplies of those immovable goods on which tax is chargeable in accordance with the provisions of this section, or | ||
(II) supplies of other goods or services effected for consideration by the landlord, or | ||
(III) post-letting expenses in respect of that interest, | ||
(ii) shall not be entitled to deduct tax in respect of transactions in relation to those immovable goods other than— | ||
(I) supplies of those immovable goods on which tax is chargeable in accordance with the provisions of this section other than subsection (4), or | ||
(II) supplies of other goods or services effected for consideration by the landlord, or | ||
(III) post-letting expenses in respect of that interest, | ||
(iii) shall be deemed, where that landlord is not the person who made the disposal of the interest, to be a taxable person in respect of post-letting expenses in relation to that interest and shall in relation to those post-letting expenses be entitled to deduct tax, in accordance with section 12, as if those post-letting expenses were for the purposes of the landlord's taxable supplies. | ||
(b) For the purposes of this subsection post-letting expenses in relation to an interest in immovable goods are expenses which the landlord incurs— | ||
(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 but does not include transactions the obligation to perform which is not reflected in the consideration on which tax was charged on the disposal of that interest, or | ||
(ii) which directly relate to the collection of rent arising under the contract referred to in subparagraph (i), or | ||
(iii) which directly relate to a review of rent where the terms and conditions of the contract referred to in subparagraph (i) provide for such a review, or | ||
(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 subparagraph (i) provide for such an option or such a break-clause, | ||
but do not include any expenses relating to goods or services of the type specified in section 12(3).”. |