Finance Act, 1998

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Amendment of Chapter 3 (designated areas, designated streets, enterprise areas and multi-storey car parks in certain urban areas) of Part 10 of Principal Act.

24.—(1) Chapter 3 of Part 10 of the Principal Act is hereby amended—

(a) (i) in section 339(1), by the substitution in paragraph (b) of the definition of “qualifying period” of “31st day of December, 1999” for “30th day of June, 2000”, and

(ii) in section 339(2)—

(I) in paragraph (a), by the substitution of the following for the words from “the reference in paragraph (a)” to the end of the paragraph:

“the reference in paragraph (a) of the definition of ‘qualifying period’ in subsection (1) to the period ending on the 31st day of July, 1997, shall be construed as a reference to the period ending on the 31st day of July, 1998.”,

and

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

“(c) Where in relation to the construction of, conversion into, refurbishment of, or, as the case may be, construction or refurbishment of a building or structure to which paragraph (a) relates—

(i) the relevant local authority has given to the person constructing, converting or refurbishing, as the case may be, that building or structure, a certificate in writing to which that paragraph refers certifying that not less than 15 per cent of the total cost of the building or structure had been incurred before the 31st day of July, 1997, and

(ii) an application for planning permission for the work represented by the expenditure incurred or to be incurred on the building or structure had (in so far as such permission is required) been received by a planning authority not later than the 1st day of March, 1998, and

(iii) where the expenditure to be incurred on a building or structure has not been fully incurred by the 31st day of July, 1998, the relevant local authority gives a certificate in writing to the person referred to in subparagraph (i) stating that in its opinion—

(I) that person had, on the 31st day of July, 1997, a reasonable expectation that the expenditure to be incurred on the building or structure would have been incurred in full on or before the 31st day of July, 1998, and

(II) the failure to incur that expenditure in full on or before the 31st day of July, 1998, was, on the basis of reasons of a bona fide character stated to it, due, to a significant extent, to a delay outside the direct control of that person, including an unanticipated delay in obtaining the grant of planning permission or a fire certificate, an unanticipated delay due to legal proceedings or unanticipated difficulties in completing the acquisition of a site or involving the failure of a building contractor to fulfil his or her obligations or the need to respect any archaeological site or remains,

then, the reference in paragraph (a) of the definition of ‘qualifying period’ to the period ending on the 31st day of July, 1997, shall be construed as a reference to the period ending on the 31st day of December, 1998.”,

(b) in section 340(2), by the substitution in paragraph (ii) of “31st day of December, 1999” for “30th day of June, 2000”,

(c) in section 343—

(i) in subsection (1), in the definition of “qualifying company”, by the substitution of the following paragraph for paragraph (a):

“(a) which has been approved for financial assistance under a scheme administered by Forfás, Forbairt, the Industrial Development Agency (Ireland) or Údarás na Gaeltachta, and”,

(ii) in subsection (1), in the definition of “qualifying trading operations” by the substitution of the following for paragraphs (a) and (b):

“(a) the manufacture of goods within the meaning of Part 14,

(b) the rendering of services in the course of a service industry (within the meaning of the Industrial Development Act, 1986 ), or

(c) the rendering of services in the course or furtherance of a business of freight forwarding or the provision of logistical services in relation to such business where the rendering or provision of those services is carried on in an area or areas immediately adjacent to any of the airports to which section 340(2) refers.”,

and

(iii) in subsection (2), by the substitution of the following paragraph for paragraph (a):

“(a) on the recommendation of Forfás (in conjunction with Forbairt, the Industrial Development Agency (Ireland) or Údarás na Gaeltachta, as may be appropriate), in accordance with guidelines laid down by the Minister, and”,

(d) in section 345, by the substitution, in subsection (1), of the following for the definition of “qualifying lease”:

“‘qualifying lease’ means, subject to subsection (8), a lease in respect of a qualifying premises granted in the qualifying period, or within the period of one year from the day next after the end of the qualifying period, on bona fide commercial terms by a lessor to a lessee not connected with the lessor, or with any other person entitled to a rent in respect of the qualifying premises, whether under that lease or any other lease;”,

and

(e) by the insertion of the following section after section 350:

“Provision against double relief.

350A.—Where relief is given by virtue of any provision of this Chapter in relation to capital expenditure or other expenditure incurred on, or rent payable in respect of, any building or structure, premises or multi-storey car park, relief shall not be given in respect of that expenditure or that rent under any other provision of the Tax Acts.”.

(2) Paragraph (c)(ii) of subsection (1) shall come into operation on such day as the Minister for Finance may, by order, appoint.