Finance Act 2008

Amendment of section 10 (amount on which tax is chargeable) of Principal Act.

93.— Section 10 of the Principal Act is amended—

(a) by inserting with effect from 1 July 2008 the following after subsection (4C):

“(4D) (a) The amount on which tax is chargeable in relation to a supply of services referred to in section 5(3B) in any taxable period shall be an amount equal to one sixth of one twentieth of the cost of the immovable goods used to provide those services, being—

(i) the amount on which tax was chargeable to the person making the supply in respect of that person’s acquisition or development of the immovable goods referred to in section 5(3B), and

(ii) in the case where section 3(5)(b)(iii) applied to the acquisition of the immovable goods, the amount on which tax would have been chargeable but for the application of that section,

adjusted to correctly reflect the proportion of the use of the goods in that period.

(b) The Revenue Commissioners may make regulations specifying methods which may be used—

(i) to identify the proportion which correctly reflects the extent to which immovable goods are used for the purposes referred to in section 5(3B), and

(ii) to calculate the relevant taxable amount or amounts.”,

(b) in subsection (8) by inserting with effect from 1 September 2008 the following after subparagraph (c):

“(d) This subsection does not apply in respect of a supply of services to which section 8(1B) applies.”,


(c) in subsection (9)—

(i) by inserting the following after paragraph (b):

“(ba) Subsections (a) and (b) apply in respect of transactions which take place prior to 1 July 2008.”,


(ii) with effect from 1 July 2008 in paragraph (c), by substituting “value” for “price” in both places where it occurs.