Finance Act, 1994

Accelerated capital allowances in relation to construction or refurbishment of certain industrial buildings or structures.

40.—(1) This section shall apply to a building or structure the site of which is wholly within a designated area, or which fronts onto a designated street, and which is to be an industrial building or structure by reason of its use for a purpose specified in section 255 (1) (a) of the Income Tax Act, 1967 .

(2) Subject to subsection (4), section 254 of the Income Tax Act, 1967 , shall have effect in relation to capital expenditure which is incurred in the qualifying period on the construction or refurbishment of a building or structure to which this section applies—

(a) as if, in paragraph (aa) (inserted by section 74 of the Finance Act, 1990 ) of subsection (2A) of the said section 254, the reference to “before the 1st day of April, 1992” were a reference to “before the 1st day of August, 1997”, and

(b) as if subsection (2B) (inserted by the said section 74) of the said section 254 were deleted.

(3) Subject to subsection (4), section 25 of the Finance Act, 1978 , shall have effect in relation to capital expenditure which is incurred in the qualifying period on the construction or refurbishment of a building or structure to which this section applies—

(a) as if, in paragraph (b) of subsection (2) (inserted by section 48 of the Finance Act, 1988 ) of the said section 25—

(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

(b) as if subsection (2A) (inserted by the said section 76) of the said section 25 were deleted.

(4) In the case of an industrial building or structure which fronts onto a designated street, subsections (2) and (3) shall apply only in relation to capital expenditure which is incurred in the qualifying period on the refurbishment of the industrial building or structure and only if the following conditions are also satisfied, that is to say—

(a) the industrial building or structure is comprised in an existing building or structure (hereafter in this subsection referred to as “the existing building”) as on the 1st day of August, 1994, which fronts onto the designated street, and

(b) apart from the capital expenditure which is incurred in the qualifying period on the refurbishment of the industrial building or structure, expenditure is incurred on the existing building which is—

(i) conversion expenditure within the meaning of section 44 , or

(ii) relevant expenditure within the meaning of section 45 , or

(iii) qualifying expenditure within the meaning of section 46 (being qualifying expenditure 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 44 , 45 or 46 , as the case may be:

Provided that subsections (2) and (3) shall not apply in relation to so much (if any) of the capital expenditure incurred in the qualifying period on the refurbishment of the industrial building or structure 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 44 , 45 or 46 , as the case may be, in respect of the said conversion expenditure, the said relevant expenditure or, as the case may be, the said qualifying expenditure.

(5) For the purposes only of determining, in relation to a claim for an allowance under section 254 of the Income Tax Act, 1967 , or section 25 of the Finance Act, 1978 , as applied by this section, whether and to what extent capital expenditure incurred on the construction or refurbishment of an industrial building or structure 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, as the case may be, the refurbishment of the building or structure 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.