Finance Act, 1988

Application of certain allowances in relation to certain areas and certain expenditure.

51.—(1) This section applies to—

(a) machinery or plant or an industrial building provided for use for the purposes of trading operations which are relevant trading operations within the meaning of section 39A (inserted by the Finance Act, 1981 ) or section 39B (inserted by the Finance Act, 1987 ) of the Finance Act, 1980 ;

(b) a premises which is a qualifying premises, within the meaning of section 42 of the Finance Act, 1986 ;

(c) machinery or plant or an industrial building—

(i) the expenditure on the provision of which was incurred under a binding contract entered into on or before the 27th day of January, 1988, or

(ii) which is provided for the purposes of a project approved by an industrial development agency on or before the 31st day of December, 1988;

and

(d) machinery or plant provided before the 1st day of April, 1991, for the purposes of a trade or part of a trade of hotel-keeping carried on in a building or structure or part thereof (including machinery or plant provided by a lessor to a lessee for use in such a trade or part thereof) where a binding contract for the provision of the said building or structure was entered into after the 27th day of January, 1988, and before the 1st day of June, 1988.

(2) Section 251 (as amended by the Finance Act, 1988) of the Income Tax Act, 1967 , shall have effect in relation to capital expenditure incurred on the provision of machinery or plant to which this section applies as if paragraph (bb) of subsection (4) and subsection (7) were deleted and as if “1991” were substituted for “1988” in subsection (4) (d).

(3) Section 11 (as amended by the Finance Act, 1988) of the Finance Act, 1967 , and section 26 (as amended by the Finance Act, 1988) of the Finance Act, 1971 , shall have effect in relation to an allowance which falls to be made under section 241 of the Income Tax Act, 1967 , for wear and tear of any machinery or plant to which this section applies as if—

(a) paragraph (b) of subsection (2) of the said section 11, and

(b) paragraph (b) of subsection (2) of the said section 26,

were deleted.

(4) Section 254 (as amended by the Finance Act, 1988) of the Income Tax Act, 1967 , and section 25 (as amended by the Finance Act, 1988) of the Finance Act, 1978 , shall have effect in relation to capital expenditure on the construction of an industrial building or a premises to which this section applies as if—

(a) subsection (7) of the said section 254, and

(b) paragraph (b) of subsection (2) of the said section 25,

were deleted.

(5) Section 265 of the Income Tax Act, 1967 , shall have effect as respects the relevant interest in a building or structure to which subsection (1) (d) applies as if section 45 had not been enacted.

(6) In this section “industrial development agency” means the Industrial Development Authority, Shannon Free Airport Development Company Limited or Údarás na Gaeltachta.