Finance Act, 2001

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Living over the shop scheme.

60.—Chapter 7 of Part 10 of the Principal Act is amended—

(a) in section 372A—

(i) in subsection (1)—

(I) by the insertion before the definition of “lease” of the following:

“existing building” means a building or structure which—

(a) fronts on to a qualifying street, and

(b) existed on 13 September 2000;

(II) by the insertion after the definition of “multi-storey car park” of the following:

“‘necessary construction’, in relation to an existing building, means one or more of the following:

(a) construction of an extension to the building which does not exceed 30 per cent of the floor area of the building immediately before expenditure on the construction, conversion or refurbishment of the building was incurred, where such extension is necessary for the purposes of facilitating access to, or providing essential facilities in, one or more qualifying premises within the meaning of section 372F or 372I,

(b) construction of an additional storey or additional storeys to the building which was or were, as the case may be, necessary for the restoration or enhancement of the streetscape, or

(III) by the substitution of the following for the definition of “qualifying period”:

“‘qualifying period’ means—

(a) subject to section 372B and in relation to a qualifying area, the period commencing on 1 August 1998 and ending on 31 December 2002, and

(b) subject to 372BA and in relation to a qualifying street, the period commencing on 6 April 2001 and ending on 31 December 2004;”,

(IV) by the insertion before the definition of “refurbishment” of the following:

“‘qualifying street’ means a street specified as a qualifying street under section 372BA;”,

(V) by the substitution in the definition of “refurbishment” of “the building or structure;” for “the building or structure.”, and

(VI) by the insertion after the definition of “refurbishment” of the following:

“‘replacement building’, in relation to a building or structure which fronts on to a qualifying street, means a building or structure or part of a building or structure, as the case may be, which is constructed to replace an existing building, where—

(a) (i) a notice under subsection (1) of section 3 or an order under subsection (5) of that section, of the Local Government (Sanitary Services) Act, 1964 , which required the demolition of the existing building or part of that building, was given or made, as the case may be, on or after 13 September 2000 and before 31 March 2001, and

(ii) the replacement building is consistent with the character and size of the existing building,

(b) the demolition of the existing building (being a single storey building) was required for structural reasons, in order to facilitate the construction of an additional storey or additional storeys to the building which was or were, as the case may be, necessary for the restoration or enhancement of the streetscape;

‘relevant local authority’ in relation to a street means, in respect of the county boroughs of Cork, Dublin, Galway, Limerick or Waterford, the corporation of the borough in whose functional area the street is situated;

‘street’ includes part of a street and the whole or part of any road, square, quay or lane.”,

and

(ii) in subsection (2) by the insertion after “This Chapter shall apply” of “in relation to qualifying areas”,

(b) in section 372B(4) by the insertion after “of this Chapter” of “in respect of the construction, refurbishment or conversion of a building, structure or house, the site of which is wholly within a qualifying area,”,

“Qualifying streets.

372BA.—(1) The Minister for Finance may, on the recommendation of the Minister for the Environment and Local Government (which recommendation shall take into consideration proposals submitted by a relevant local authority to that Minister in respect of a street identified by it), by order direct that—

(a) a street described (being a street situated in the functional area of the relevant local authority) in the order shall be a qualifying street for the purposes of one or more sections of this Chapter,

(b) where such a street is to be a qualifying street for the purposes of section 372D, the categories of building or structure mentioned in subsection (2) shall not be a qualifying premises within the meaning of that section, and

(c) as respects any such street so described in the order, the definition of ‘qualifying period’ in section 372A shall be construed as a reference to such period as shall be specified in the order in relation to that street; but no such period specified in the order shall commence before 6 April 2001 or end after 31 December 2004.

(2) The categories of building or structure referred to in subsection (1)(b) shall be buildings or structures—

(a) other than those in use for the purposes of the retailing of goods or the provision of services only within the State,

(b) in use as offices, and

(3) Every order made by the Minister for Finance under subsection (1) shall be laid before Dáil Éireann as soon as may be after it is made and, if a resolution annulling the order is passed by Dáil Éireann within the next 21 days on which Dáil Éireann has sat after the order is laid before it, the order shall be annulled accordingly, but without prejudice to the validity of anything previously done thereunder.

(4) Notwithstanding an order under subsection (1), no relief from income tax or corporation tax, as the case may be, may be granted in respect of the construction, refurbishment or conversion of a building, structure or house which fronts on to a qualifying street unless the relevant local authority has certified in writing that such construction, refurbishment or conversion is consistent with the aims, objectives and criteria for the Living over the Shop Scheme, as outlined in a circular of the Department of the Environment and Local Government entitled ‘Living Over The Shop Scheme’, reference numbered UR 43A and dated 13 September 2000, or in any further circular of that Department amending paragraph 6 of the first-mentioned circular for the purposes of increasing the aggregate length of street allowable, to the manager of the relevant local authority concerned.”,

(d) in section 372D—

(i) by the insertion in subsection (1), of “, or which fronts on to a qualifying street,” after “qualifying area”, and

(ii) by the insertion of the following after subsection (3):

“(3A) (a) In the case of a qualifying premises which fronts on to a designated street, subsection (2) shall apply in relation to capital expenditure incurred in the qualifying period on the construction or refurbishment of the qualifying premises, only if—

(i) the qualifying premises are comprised in the ground floor of—

(I) an existing building, or

(II) a replacement building,

and

(ii) apart from the capital expenditure incurred in the qualifying period on the construction or refurbishment of the qualifying premises, expenditure is incurred on the upper floor or floors of the existing building or the replacement building, as the case may be, which is—

(I) expenditure on the construction (being necessary construction) of a qualifying premises as defined in section 372F,

(II) conversion expenditure within the meaning of section 372G,

(III) relevant expenditure within the meaning of section 372H, or

(IV) qualifying expenditure within the meaning of section 372I (being qualifying expenditure on necessary construction, or on refurbishment within the meaning of that section),

and in respect of which a deduction has been given, or would on due claim being made be given, under section 372F, 372G, 372H or 372I, as the case may be.

(b) Notwithstanding paragraph (a), subsection (2) shall not apply in relation to so much (if any) of the capital expenditure incurred in the qualifying period on the construction or refurbishment of the qualifying premises as exceeds the amount of the deduction, or the aggregate amount of the deductions, which has been given, or which would on due claim being made be given, under section 372F, 372G, 372H or 372I, as the case may be, in respect of the expenditure on construction (being necessary construction), conversion expenditure, the relevant expenditure or, as the case may be, the qualifying expenditure (being qualifying expenditure on necessary construction, or on refurbishment).”,

(e) in section 372F—

(i) in subsection (1), in the definition of “qualifying premises” by the insertion in paragraph (a) of “, or which fronts on to a qualifying street” after “qualifying area”, and

(ii) in subsection (2), by the insertion after “a qualifying premises” of “the site of which is wholly within a qualifying area, or on the necessary construction of a qualifying premises which fronts on to a qualifying street”,

(f) in section 372G(1) by the insertion in paragraphs (a)(i) and (b)(i) of the definition of “conversion expenditure” of “, or which fronts on to a qualifying street” after “qualifying area” in each case,

(g) in section 372H(1) by the insertion in paragraph (a) of the definition of “specified building” of “, or which fronts on to a qualifying street” after “qualifying area”,

(h) in section 3721—

(i) in subsection (1)—

(I) in the definition of “qualifying expenditure” by the substitution for “local authority;” of the following:

“local authority; but in the case of a qualifying premises which fronts on to a qualifying street or which is comprised in a building or part of a building which fronts on to a qualifying street, this definition shall apply as if the reference to ‘construction’ were a reference to ‘necessary construction’.”,

and

(II) in the definition of “qualifying premises” by the insertion in paragraph (a) of “, or which fronts on to a qualifying street or which is comprised in a building or part of a building which fronts on to a qualifying street” after “qualifying area”,

and

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

“(i) in the case where the qualifying expenditure has been incurred—

(I) on the construction of a qualifying premises the site of which is wholly within a qualifying area, 5 per cent of the amount of that expenditure, and

(II) on the necessary construction of a qualifying premises which fronts on to a qualifying street or which is comprised in a building or part of a building which fronts on to a qualifying street, 10 per cent of the amount of that expenditure.”,

(i) in section 372J by the insertion after subsection (5) of the following:

“(5A) A house which fronts on to a qualifying street or which is comprised in a building or part of a building which fronts on to a qualifying street shall not be a qualifying premises for the purposes of section 372F, 372G, 372H or 372I unless—

(a) the house is comprised in the upper floor or floors of an existing building or a replacement building, and

(b) the ground floor of such building is in use for commercial purposes, or, where it is temporarily vacant, it is subsequently so used.”,

and

(j) in section 372K(1), by the insertion after paragraph (a) of the following:

“(aa) in respect of expenditure incurred on or after 6 April 2001 on the construction or refurbishment of a building or structure or a qualifying premises the site of which is wholly within a qualifying area where any part of such expenditure has been or is to be met, directly or indirectly, by grant assistance from the State or from any other person,”.

Finance Act, 2001 Permanent Page URL

Finance Act, 2001

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