Finance Act, 2001

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Capital allowances for certain hospitals.

64.—(1) Part 9 of the Principal Act is amended—

(a) in section 268—

(i) in subsection (1)—

(I) in paragraph (h), by the deletion of “or,” where it last occurs,

(II) in paragraph (i), by the substitution of “that Act, or” for “that Act.”, and

(III) by the insertion after paragraph (i) of the following:

“(j) for the purposes of a trade which consists of the operation or management of a qualifying hospital,”,

(ii) by the insertion after subsection (2) of the following:

“(2A) In this section—

‘health board’ means—

(a) a health board established under the Health Act, 1970 ,

(b) the Eastern Regional Health Authority,

(c) an Area Health Board established under the Health (Eastern Regional Health Authority) Act, 1999 , or

(d) the Health Board Executive;

‘qualifying hospital’ means a hospital (within the meaning of the Tobacco (Health Promotion and Protection) Regulations, 1995 ( S.I. No. 359 of 1995 )) which—

(a) is a private hospital (within the meaning of the Health Insurance Act, 1994 (Minimum Benefits) Regulations, 1996 ( S.I. No. 83 of 1996 )),

(b) is operated or managed by a body of persons, or trust, established for charitable purposes only and which, by virtue of section 208, is entitled to exemption from income tax or corporation tax in respect of the profits or gains derived from the operation or management of the hospital,

(c) has the capacity to provide and normally provides medical and surgical services to persons every day of the year,

(d) has the capacity to provide out-patient services and accommodation on an over-night basis of not less than 100 in-patient beds,

(e) contains an operating theatre or theatres and related on-site diagnostic and therapeutic facilities,

(f) contains facilities to provide not less than 5 of the following services:

(i) accident and emergency,

(ii) cardiology and vascular,

(iii) eye, ear, nose and throat,

(iv) gastroenterology,

(v) geriatrics,

(vi) haematology,

(vii) maternity,

(viii) medical,

(ix) neurology,

(x) oncology,

(xi) orthopaedic,

(xii) respiratory,

(xiii) rheumatology, and

(xiv) paediatric,

(g) undertakes to the health board in whose functional area it is situated—

(i) to make available annually, for the treatment of persons who have been awaiting in-patient or out-patient hospital services as public patients, not less than 20 per cent of its capacity, subject to service requirements to be specified by the health board in advance and to the proviso that nothing in this subparagraph shall require the health board to take up all or any part of the capacity made available to the health board by the hospital, and

(ii) in relation to the fees to be charged in respect of the treatment afforded to any such person, that such fees shall not be more than 90 per cent of the fees which would be charged in respect of similar treatment afforded to a person who has private medical insurance,

and

(h) in respect of which that health board, in consultation with the Minister for Health and Children and with the consent of the Minister for Finance, gives a certificate in writing stating that it is satisfied that the hospital complies with the conditions mentioned in paragraphs (a), (c), (d), (e), (f) and (g),

but does not include any part of the hospital which consists of consultants' rooms or offices.”,

and

(iii) in subsection (9)—

(I) in paragraph (e), by the deletion of “and” where it last occurs,

(II) in paragraph (f), by the substitution of “1998, and” for “1998.”, and

(III) by the insertion after paragraph (f) of the following:

“(g) by reference to paragraph (j), as respects capital expenditure incurred on or after the date of the coming into operation of section 64 of the Finance Act, 2001.”,

(b) in section 272—

(i) in subsection (3)—

(I) in paragraph (f), by the deletion of “and”,

(II) in paragraph (g), by the substitution of “subsection (2)(c), and” for “subsection (2)(c).”, and

(III) by the insertion after paragraph (g) of the following:

“(h) in relation to a building or structure which is to be regarded as an industrial building or structure within the meaning of section 268(1)(j), 15 per cent of the expenditure referred to in subsection (2)(c).”,

and

(ii) in subsection (4)—

(I) in paragraph (f), by the deletion of “and”,

(II) in paragraph (g)(ii)(II), by the substitution of “1998,” for “1998.”, and

(III) by the insertion after paragraph (g) of the following:

“and

(h) in relation to a building or structure which is to be regarded as an industrial building or structure within the meaning of section 268(1)(j), 7 years beginning with the time when the building or structure was first used.”,

and

(c) in section 274(1)(b)—

(i) in subparagraph (v)(II), by the deletion of “and”,

(ii) in subparagraph (vi)(II)(B), by the substitution of “1998,” for “1998.”, and

(iii) by the insertion after subparagraph (vi) of the following:

“and

(vii) in relation to a building or structure which is to be regarded as an industrial building or structure within the meaning of section 268(1)(j), 10 years beginning with the time when the building or structure was first used.”.

(2) This section shall come into operation on such day as the Minister for Finance may by order appoint.