Finance Act, 1998
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Capital allowances for airport buildings and structures. |
20.—Part 9 of the Principal Act is hereby amended— | |
(a) in section 268 — | ||
(i) in subsection (1), by the insertion after paragraph (g) (inserted by this Act) of the following paragraph: | ||
“(h) for the purposes of a trade which consists of the operation or management of an airport, other than a building or structure to which paragraph (f) relates,”, | ||
(ii) in subsection (9), by the insertion after paragraph (d) (inserted by this Act) of the following paragraph: | ||
“(e) by reference to paragraph (h), as respects capital expenditure incurred— | ||
(i) by Aer Rianta cuideachta phoiblí theoranta on or after the vesting day, and | ||
(ii) by any other person on or after the date of the passing of the Finance Act, 1998.”, | ||
and | ||
(iii) by the insertion after subsection (9) of the following subsection: | ||
“(10) For the purposes of this Part, ‘the vesting day’ has the same meaning as it has in the Bill presented to Dáil Éireann by the Minister for Public Enterprise on the 2nd day of October, 1997, providing, amongst other things, for the vesting of Dublin Airport, Shannon Airport and Cork Airport in Aer Rianta cuideachta phoiblí theoranta.”, | ||
(b) in section 272— | ||
(i) in subsection (3), by the insertion after paragraph (f) (inserted by this Act) of the following paragraph: | ||
“(g) 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)(h), 4 per cent of the expenditure referred to in subsection (2)(c).”, | ||
(ii) by the insertion after subsection (3) of the following subsections: | ||
“(3A) (a) This subsection shall apply to a building or structure in existence on— | ||
(i) in the case of Aer Rianta cuideachta phoiblí theoranta, the vesting day, and | ||
(ii) in the case of any other person, the date of the passing of the Finance Act, 1998, | ||
and in use for the purposes of a trade which consists of the operation or management of an airport, not being either machinery or plant or a building or structure to which section 268(1)(f) applies. | ||
(b) For the purposes of this Part, in relation to a building or structure to which this subsection applies, expenditure shall be deemed to have been incurred on— | ||
(i) in the case of Aer Rianta cuideachta phoiblí theoranta, the vesting day, and | ||
(ii) in the case of any other person, the date of the passing of the Finance Act, 1998, | ||
on the construction of the building or structure of an amount determined by the formula— | ||
A − B | ||
where— | ||
A is the amount of the capital expenditure originally incurred on the construction of the building or structure, and | ||
B is the amount of the writing-down allowances which would have been made under this section in respect of the capital expenditure referred to in A if the building or structure had at all times been an industrial building or structure within the meaning of section 268(1)(h) and on the assumption that that section had applied as respects capital expenditure incurred before— | ||
(I) in the case of Aer Rianta cuideachta phoiblí theoranta, the vesting day, and | ||
(II) in the case of any other person, the date of the passing of the Finance Act, 1998. | ||
(3B) (a) This subsection shall apply to a building or structure to which section 268(1)(f) applies, being a building or structure in existence on the vesting day and vested in Aer Rianta cuideachta phoiblí theoranta on that day. | ||
(b) For the purposes of this Part, in the case of a building or structure to which this subsection applies, expenditure shall be deemed to have been incurred by Aer Rianta cuideachta phoiblí theoranta on the vesting day on the construction of the building or structure of an amount determined by the formula— | ||
A − B | ||
where— | ||
A is the amount of the capital expenditure originally incurred on the construction of the building or structure, and | ||
B is the amount of the writing-down allowances which would have been made under this section in respect of the capital expenditure referred to in A for the period to the day before the vesting day if a claim for those allowances had been duly made and allowed.”, | ||
and | ||
(iii) in subsection (4)— | ||
(I) in paragraph (d), by the deletion of “and”, | ||
(II) by the substitution of the following paragraph for paragraph (e): | ||
“(e) 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)(f), 25 years beginning with— | ||
(i) the time when the building or structure was first used, or | ||
(ii) in the case of a building or structure to which subsection (3B) applies, the vesting day,”, | ||
and | ||
(III) by the insertion after paragraph (f) (inserted by this Act) of the following paragraph: | ||
“(g) 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)(h), 25 years beginning with— | ||
(i) the time when the building or structure was first used, or | ||
(ii) as respects a building or structure to which subsection (3A) applies— | ||
(I) in the case of Aer Rianta cuideachta phoiblí theoranta, the vesting day, and | ||
(II) in the case of any other person, the date of the passing of the Finance Act, 1998.”, | ||
(c) in section 274(1)(b)— | ||
(i) in subparagraph (iv), by the deletion of “and”, | ||
(ii) by the substitution of the following subparagraph for subparagraph (v): | ||
“(v) 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)(f), 25 years after— | ||
(I) the building or structure was first used, or | ||
(II) in the case of a building or structure to which section 272(3B) applies, the vesting day, and”, | ||
and | ||
(iii) by the insertion after subparagraph (v) of the following subparagraph: | ||
“(vi) 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)(h), 25 years after— | ||
(I) the building or structure was first used, or | ||
(II) as respects a building or structure to which section 272(3A) applies— | ||
(A) in the case of Aer Rianta cuideachta phoiblí theoranta, the vesting day, and | ||
(B) in the case of any other person, the date of the passing of the Finance Act, 1998”, | ||
and | ||
(d) in section 284, by the insertion after subsection (7) of the following subsection: | ||
“(8) For the purposes of this Part, Aer Rianta cuideachta phoiblí theoranta shall be deemed to have incurred, on the vesting day, capital expenditure on the provision of machinery or plant, being the machinery or plant vested in Aer Rianta cuideachta phoiblí theoranta on that day, and the actual cost of that machinery or plant shall be deemed to be an amount determined by the formula— | ||
A−B | ||
where— | ||
A is the original actual cost of the machinery or plant, including in that cost any expenditure in the nature of capital expenditure on the machinery or plant by means of renewal, improvement or reinstatement, and | ||
B is the amount of any wear and tear allowances which would have been made under this section in respect of the machinery or plant since the original provision of the machinery or plant if a claim for those allowances had been duly made and allowed.”. |