Finance Act, 1997

Amendment of provisions relating to relief for expenditure on significant buildings, etc.

17.—(1) Section 19 (as amended by the Finance Act, 1995 ) of the Finance Act, 1982 , is hereby amended—

(a) in subsection (1)—

(i) by the insertion of the following definition after the definition of “approved building”:

“‘approved object’, in relation to an approved building, has the meaning assigned to it by subsection (4A);”,

(ii) by the substitution of the following definition for the definition of “authorised person”:

“‘authorised person’ means—

(a) an inspector or other officer of the Revenue Commissioners authorised by them in writing for the purposes of this section, or

(b) a person authorised by the Minister in writing for the purposes of this section;”,

(iii) by the insertion of the following definition after the definition of “chargeable period”:

“‘the Minister’ means the Minister for Arts, Culture and the Gaeltacht;”,

(iv) by the insertion of the following definition after the definition of “the Minister” (inserted by subparagraph (iii)):

“‘public place’, in relation to an approved building in use as a tourist accommodation facility, means a part of the building to which all patrons of the facility have access;”,

(v) by the substitution of the following definition for the definition of “qualifying expenditure”:

“‘qualifying expenditure’, in relation to an approved building, means expenditure incurred, by the person who owns or occupies the approved building, on one or more of the following—

(a) the repair, maintenance or restoration of the approved building or the maintenance or restoration of any land occupied or enjoyed with the approved building as part of its garden or grounds of an ornamental nature, and

(b) to the extent that the aggregate expenditure in a chargeable period does not exceed £5,000—

(i) the repair, maintenance or restoration of an approved object in the approved building,

(ii) the installation, maintenance or replacement of a security alarm system in the approved building, and

(iii) public liability insurance for the approved building;”,

(vi) by the insertion of the following definition after the definition of “qualifying expenditure”:

“‘security alarm system’ means an electrical apparatus installed as a fixture in the approved building which, when activated, is designed to give notice to the effect that there is an intruder present or attempting to enter the approved building in which it is installed;”,

and

(vii) by the insertion of the following paragraph after paragraph (b):

“(c) For the purposes of this section, references to an approved building, unless the contrary intention is expressed, shall be construed as including a reference to any land occupied or enjoyed with an approved building as part of its garden or grounds of an ornamental nature.”,

(b) in subsection (2), by the substitution, in paragraph (a), of the following subparagraph for subparagraph (i):

“(i) that he has incurred in a chargeable period qualifying expenditure in relation to an approved building,”,

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

“(2A) (a) Where—

(i) by virtue of subsection (2), qualifying expenditure in a chargeable period is treated as if it were a loss sustained in the chargeable period in a trade carried on by the person separate from any trade actually carried on by that person, and

(ii) owing to an insufficiency of income, relief under the Tax Acts cannot be given for any part of the qualifying expenditure so treated (in this subsection referred to as ‘the unrelieved amount’),

then, all the provisions of the Tax Acts shall apply as if the unrelieved amount were a loss sustained in the next following chargeable period in a trade carried on by the person separate from any trade actually carried on by that person.

(b) Where owing to an insufficiency of income, relief under the Tax Acts cannot be given by virtue of paragraph (a) for any part of the unrelieved amount, then all the provisions of the Tax Acts shall apply as if that part of the unrelieved amount were a loss sustained in the chargeable period next following the period referred to in paragraph (a) in a trade carried on by the person separate from any trade actually carried on by that person.

(c) Where, in any chargeable period, relief under the Tax Acts is due by virtue of two or more of the following provisions, that is to say, subsection (2) and paragraphs (a) and (b) of this subsection, then the following provisions shall apply—

(i) any relief due under those Acts by virtue of paragraph (b) shall be given in priority to any relief due under those Acts by virtue of subsection (2) or paragraph (a), and

(ii) where relief has been given in accordance with subparagraph (i) or where no such relief is due, any relief due under those Acts by virtue of paragraph (a) shall be given in priority to relief due under those Acts by virtue of subsection (2).”,

(d) in subsection (4)—

(i) by the substitution in paragraph (a) of the following subparagraph for subparagraph (i):

“(i) by the Minister, to be a building which is intrinsically of significant scientific, historical, architectural or aesthetic interest, and”,

(ii) by the substitution of the following paragraph for paragraph (c):

“(c) Where under paragraph (a) the Minister makes a determination in relation to a building and, by reason of any alteration made to the building, or any deterioration of the building, subsequent to the determination being made, the Minister considers that the building is no longer a building which is intrinsically of significant scientific, historical, architectural or aesthetic interest, the Minister may, by notice in writing given to the owner or occupier of the building, revoke the determination with effect from the date on which the Minister considers that the building ceased to be a building which is intrinsically of significant scientific, historical, architectural or aesthetic interest, and this subsection shall cease to apply to the building from that date.”,

(e) by the insertion of the following subsection after subsection (4):

“(4A) (a) In this subsection, ‘approved object’, in relation to an approved building, means an object (including a picture, sculpture, print, book, manuscript, piece of jewellery, furniture, or other similar object) or a scientific collection which is owned by the owner or occupier of the approved building and which, on application to them in that behalf by that person, is determined—

(i) by the Minister, after consideration of any evidence in relation to the matter which such owner or occupier submits to the Minister and after such consultation (if any) as may seem to the Minister to be necessary with such person or body of persons as in the opinion of the Minister may be of assistance to the Minister, to be an object which is intrinsically of significant national, scientific, historical or aesthetic interest, and

(ii) by the Revenue Commissioners, to be an object reasonable access to which is afforded, and in respect of which reasonable facilities for viewing are provided, in the building to the public.

(b) Without prejudice to the generality of the requirement that reasonable access be afforded, and that reasonable facilities for viewing be provided, to the public, access to and facilities for the viewing of an object shall not be regarded as being reasonable access afforded, or the provision of reasonable facilities for viewing, to the public unless, subject to such temporary removal as is necessary for the purposes of the repair, maintenance or restoration of the object as is reasonable—

(i) in a case where the approved building is a tourist accommodation facility, the object is displayed in a public place in the building, or

(ii) in the case of any other approved building—

(I) access to the object is afforded and such facilities for viewing the object are provided to the public on the same days and at the same times as access is afforded to the public to the approved building in which the object is kept, and

(II) the price, if any, paid by the public in return for such access is, in the opinion of the Revenue Commissioners, reasonable in amount and does not operate to preclude the public from seeking access to the object.

(c) Where under paragraph (a) the Minister makes a determination in relation to an object and, by reason of any alteration made to the object, or any deterioration of the object, subsequent to the determination being made, the Minister considers that the object is no longer an object which is intrinsically of significant national, scientific, historical or aesthetic interest, the Minister may, by notice in writing given to the owner or occupier of the building, revoke the determination with effect from the date on which the Minister considers that the object ceased to be an object which is intrinsically of significant national, scientific, historical or aesthetic interest, and this subsection shall cease to apply to the object from that date.

(d) Where under paragraph (a) the Revenue Commissioners make a determination in relation to an object and—

(i) reasonable access to the object ceases to be afforded, or reasonable facilities for the viewing of the object cease to be provided, to the public, or

(ii) the object ceases to be owned by the person to whom relief in respect of that qualifying expenditure has been granted under this section,

the Revenue Commissioners may, by notice in writing given to the owner or occupier of the approved building in which the object is or was kept, revoke that determination with effect from the date on which they consider that such access, such facilities for viewing or such ownership, as the case may be, so ceased, and—

(i) this subsection shall cease to apply to the object from that date, and

(ii) if relief has been given under this section in respect of qualifying expenditure incurred in relation to that object in the period of two years ending on the date from which the revocation has effect, that relief shall be withdrawn and there shall be made all such assessments or additional assessments as are necessary to give effect to the provisions of this subsection.”,

and

(f) by the substitution in subsection (5) of the following paragraph for paragraph (a):

“(a) Where a person makes a claim under subsection (2), an authorised person may, at any reasonable time, enter the building in relation to which the qualifying expenditure has been incurred for the purpose of inspecting, as the case may be, the building or an object or of examining any work in respect of which the expenditure to which the claim relates was incurred.”.

(2) Section 29 of the Finance Act, 1993 , is hereby amended in subsection (1)—

(a) by the substitution of the following paragraph for paragraph (a) of the definition of “approved garden”:

“(a) by the Minister for Arts, Culture and the Gaeltacht, to be a garden which is intrinsically of significant horticultural, scientific, historical, architectural or aesthetic interest, and”,

(b) by the substitution of the following definition for the definition of “qualifying expenditure”:

“‘qualifying expenditure’, in relation to an approved garden, means expenditure incurred, by the person who owns or occupies the approved garden, on one or more of the following—

(a) the maintenance or restoration of the approved garden, and

(b) to the extent that the aggregate expenditure in a chargeable period does not exceed £5,000—

(i) the repair, maintenance or restoration of an approved object in the approved garden,

(ii) the installation, maintenance or replacement of a security alarm system in the approved garden, and

(iii) public liability insurance for the approved garden;”,

and

(c) by the insertion of the following definition after the definition of “qualifying expenditure”:

“‘security alarm system’ means an electrical apparatus installed as a fixture in the approved garden which, when activated, is designed to give notice to the effect that there is an intruder present or attempting to enter the approved garden in which it is installed.”.

(3) (a) Subparagraphs (ii) and (iii) of paragraph (a), and paragraph (d), of subsection (1) and paragraph (a) of subsection (2) shall be deemed to have come into operation and had effect as on and from the 12th day of March, 1996.

(b) Paragraph (c) of subsection (1) shall apply and have effect as respects qualifying expenditure incurred in a chargeable period being—

(i) where the chargeable period is a year of assessment, the year 1995-96 and any subsequent year of assessment, or

(ii) where the chargeable period is an accounting period of a company, an accounting period beginning on or after the 6th day of April, 1995.

(c) Subsection (1), other than subparagraphs (ii) and (iii) of paragraph (a) and paragraphs (c) and (d) thereof, and paragraphs (b) and (c) of subsection (2) shall apply and have effect as respects qualifying expenditure incurred in a chargeable period being—

(i) where the chargeable period is a year of assessment, the year 1997-98 and any subsequent year of assessment, or

(ii) where the chargeable period is an accounting period of a company, an accounting period beginning on or after the 6th day of April, 1997.