Finance Act, 1995
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Amendment of Chapter IV (Urban Renewal Reliefs: Introduction of New Scheme in Certain Areas) of Part I of Finance Act, 1994. |
35.—(1) Chapter IV of Part I of the Finance Act, 1994 , is hereby amended— | |
(a) in section 38 (1)— | ||
(i) by the substitution of the following definitions for the definitions of “designated area” and “designated street”: | ||
“‘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 39;”, | ||
(ii) by the insertion of the following definition after the definitions of “designated area” and “designated street”: | ||
“‘enterprise area’ means an area or areas specified as an enterprise area by order under section 39;”, | ||
and | ||
(iii) by the insertion in the definition of “qualifying period” after “subject to section 39” of “and other than for the purposes of section 41B”, | ||
(b) in section 39, by the substitution of the following paragraph for paragraph (a) of subsection (1): | ||
“(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”, | ||
(c) in section 40, by the insertion of the following subsection after subsection (4): | ||
“(4A) Notwithstanding section 265 (1) of the Income Tax Act, 1967 , 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 the said section 265 (1) which occurs— | ||
(a) more than 13 years after the building or structure was first used, or | ||
(b) in a case where section 26 of the Finance Act, 1991 , applies and has effect, more than 13 years after the capital expenditure on refurbishment of the building or structure was incurred.”, | ||
(d) in section 41, by the substitution of the following proviso for the proviso to subsection (1): | ||
“Provided that— | ||
(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, the foregoing provisions of this subsection shall be construed as if the reference to ‘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 (hereafter in this proviso referred to as ‘the specified part’) of the building or structure is not a qualifying premises and— | ||
(A) the specified part is in use as, or as part of, an office, and | ||
(B) the capital expenditure which has been incurred in the qualifying period on the construction or refurbishment of the specified part is not more than one-tenth of the total capital expenditure which has been 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.”, | ||
(e) by the insertion of the following section after section 41: | ||
“Capital allowances in relation to construction or refurbishment of certain buildings or structures in enterprise areas. | ||
41 A.—(1) In this section— | ||
‘the Minister’, except where the context otherwise requires, means the Minister for Enterprise 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 the provisions of subsection (5) or (6); | ||
‘qualifying trading operations’ means— | ||
(a) the manufacture of goods within the meaning of Chapter VI of Part I of the Finance Act, 1980 , 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 therein. | ||
(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 within 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 within the enterprise area, or | ||
(b) the Minister is satisfied that the company has failed to comply with any condition subject to which the said certificate was given, | ||
the Minister may, by notice in writing served by registered post on the company, revoke the said 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 said notice, he 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 said further notice. | ||
(7) Subject to the modifications provided for in subsections (8) and (9), all the provisions of the Tax Acts (other than section 40) relating to the making of allowances or charges in respect of capital expenditure which is incurred on the construction or refurbishment of an industrial building or structure shall, notwithstanding anything to the contrary therein, 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 falls to be made for the purposes of income tax or corporation tax, as the case may be, under Chapter II of Part XV, or Chapter I of Part XVI, of the Income Tax Act, 1967 , by reason of its use for a purpose specified in section 255 (1) (a) of that Act: | ||
Provided that an allowance shall be given by reason of this subsection in respect of any capital expenditure which is 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 section 254 of the Income Tax Act, 1967 , and section 25 of the Finance Act, 1978 , in relation to capital expenditure which is incurred in the qualifying period on the construction or refurbishment of a qualifying building— | ||
(a) the said section 254 shall have effect— | ||
(i) as if, in paragraph (aa) (inserted by section 74 of the Finance Act, 1990 ) of subsection (2A), the reference to ‘before the 1st day of April, 1992’ were a reference to ‘before the 1st day of August, 1997’, and | ||
(ii) as if subsection (2B) (inserted by the said section 74) were deleted, | ||
and | ||
(b) the said section 25 shall have effect— | ||
(i) as if, in paragraph (b) of subsection (2) (inserted by section 48 of the Finance Act, 1988 )— | ||
(I) the reference in subparagraph (ii) (inserted by section 76 of the Finance Act, 1990 ) to ‘before the 1st day of April, 1991’ were a reference to ‘before the 1st day of August, 1997’, and | ||
(II) subparagraph (iii) (inserted by the said section 76) were deleted, | ||
and | ||
(ii) as if subsection (2A) (inserted by the said section 76) were deleted. | ||
(9) Notwithstanding section 265 (1) of the Income Tax Act, 1967 , no balancing charge shall be made in relation to a qualifying building by reason of any of the events specified in the said section 265 (1) which occurs— | ||
(a) more than 13 years after the qualifying building was first used, or | ||
(b) in a case where section 26 of the Finance Act, 1991 , applies and has effect, 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 which was 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.”, | ||
(f) by the insertion of the following section after section 41A (inserted by paragraph (e)): | ||
“Capital allowances in relation to construction or refurbishment of certain multi-storey car-parks. | ||
41B.—(1) In this section— | ||
‘multi-storey car-park’ means a building or structure consisting of two 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, upon 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 said car-park has been developed in accordance with criteria laid down by the Minister for the Environment 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 the council of a county or other borough or, where appropriate, the urban district council, in whose functional area the multi-storey car-park is situated. | ||
(2) Subject to subsection (3) and the modifications provided for in subsections (4) to (6), all the provisions of the Tax Acts (other than section 40) relating to the making of allowances or charges in respect of capital expenditure which is incurred on the construction or refurbishment of an industrial building or structure shall, notwithstanding anything to the contrary therein, apply as if a qualifying multi-storey car-park were, at all times at which it is a qualifying multi-storey carpark, a building or structure in respect of which an allowance falls to be made for the purposes of income tax or corporation tax, as the case may be, under Chapter II of Part XV, or Chapter I of Part XVI, of the Income Tax Act, 1967 , by reason of its use for a purpose specified in section 255 (1) (a) of that Act: | ||
Provided that an allowance shall be given by reason of this subsection in respect of any capital expenditure which is 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 the 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 which is equal to 20 per cent, of the market value of the qualifying multi-storey car-park immediately before the said expenditure is incurred. | ||
(4) For the purposes of the application by subsection (2) of section 254 of the Income Tax Act, 1967 , and section 25 of the Finance Act, 1978 , in relation to capital expenditure which is incurred in the qualifying period on the construction or refurbishment of a qualifying multi-storey car-park— | ||
(a) the said section 254 shall, notwithstanding section 22 of the Finance Act, 1991 , have effect— | ||
(i) as if, in paragraph (a) of subsection (2A), the reference to ‘the 1st day of April, 1991’ (as provided for in section 50 of the Finance Act, 1988 ) were a reference to ‘the first day of July, 1998’, | ||
(ii) as if paragraph (aa) (inserted by section 74 of the Finance Act, 1990 ) of subsection (2A) were deleted, and | ||
(iii) as if subsection (2B) (inserted by the said section 74) were deleted, | ||
and | ||
(b) the said section 25 shall have effect— | ||
(i) as if paragraph (b) (as amended by section 76 of the Finance Act, 1990 ) of subsection (2) (inserted by section 48 of the Finance Act, 1988 ) were deleted, and | ||
(ii) as if subsection (2A) (inserted by the said section 76) were deleted. | ||
(5) Notwithstanding section 265 (1) of the Income Tax Act, 1967 , no balancing charge shall be made in relation to a qualifying multi-storey car-park by reason of any of the events specified in the said section 265 (1) which occurs— | ||
(a) more than 13 years after the qualifying multi-storey car-park was first used, or | ||
(b) in a case where section 26 of the Finance Act, 1991 , applies and has effect, 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 fall to be made by reason of subsection (2) in respect of capital expenditure which is 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 falling to be reduced to one-half thereof shall be computed— | ||
(i) as if this subsection had not been enacted, and | ||
(ii) as if 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 265 (5) of the Income Tax Act, 1967 . | ||
(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 which was 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 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 capital expenditure which is incurred on the construction or refurbishment of a qualifying multi-storey car-park, no allowance shall be given in respect of that expenditure under the said Chapter II or the said Chapter I by reason of any other provision of the Tax Acts.”, | ||
(g) in section 42 (1)— | ||
(i) in the definition of “qualifying lease”, by the insertion after “in the qualifying period” of “, or, in the case of a qualifying premises which is such a premises by virtue of being a building or structure of the type referred to in subparagraph (iv) of paragraph (a) of the definition of ‘qualifying premises’, in the period commencing on the 1st day of July, 1995, and ending on the 30th day of June, 1998,”, and | ||
(ii) in the definition of “qualifying premises”— | ||
(I) by the deletion of “the site of which is wholly within a designated area and”, | ||
(II) by the insertion in subparagraph (i) of paragraph (a) before “which is a building or structure” of “the site of which is wholly within a designated area and”, | ||
(III) by the insertion in subparagraph (ii) of paragraph (a) before “in respect of which an allowance falls” of “the site of which is wholly within a designated area and”, | ||
(IV) by the insertion of the following subparagraph after subparagraph (ii) of paragraph (a): | ||
“(iia) the site of which is wholly within an enterprise area and in respect of which an allowance falls, or will, by virtue of the said section 19, fall, to be made for the purposes of income tax or corporation tax, as the case may be, under Chapter II of Part XV of, or Chapter I of Part XVI of, the Income Tax Act, 1967 , by reason of section 41A, or”, | ||
(V) in subparagraph (iii) of paragraph (a)— | ||
(A) by the insertion of “the site of which is wholly within a designated area” before “which is a building or structure”, and | ||
(B) by the insertion of “or” after “the Income Tax Act, 1967 ,”, | ||
and | ||
(VI) by the insertion of the following subparagraph after subparagraph (iii) of paragraph (a):“(iv) in respect of which an allowance falls, or will, by virtue of the said section 19, fall, to be made for the purposes of income tax or corporation tax, as the case may be, under Chapter II of Part XV of, or Chapter I of Part XVI of, the Income Tax Act, 1967 , by reason of section 41B,”, | ||
(h) in section 43 (1), by the substitution of “125 square metres” for “90 square metres” in paragraph (c) (i) of the definition of “qualifying premises”, and | ||
(i) in section 46 (1)— | ||
(i) by the substitution of “125 square metres” for “90 square metres” in paragraph (d) (i) of the definition of “qualifying premises”, and | ||
(ii) by the deletion of the proviso to that definition. | ||
(2) (a) Subsection (1), apart from paragraphs (a) (iii), (c) and (f), subparagraph (i), and clauses (V) (B) and (VI) of subparagraph (ii), of paragraph (g) and paragraphs (h) and (i) thereof, shall be deemed to have come into operation as on and from the 1st day of August, 1994. | ||
(b) Paragraph (c) of subsection (1) shall apply and have effect as on and from the 12th day of April, 1995. | ||
(c) Paragraph (f), and subparagraph (i), and clauses (V) (B) and (VI) of subparagraph (ii), of paragraph (g), of subsection (1) shall apply and have effect as on and from the 1st day of July, 1995. | ||
(d) Paragraphs (h) and (i) of subsection (1) shall apply and have effect as respects expenditure incurred on or after the 12th day of April, 1995. |