Finance Act 1999

Type Act

Publication 1999-03-25

State In force

Source Irish Statute Book

articles 217

“Relief for gifts to the Scientific and Technological Education (Investment) Fund.

485B.—(1) In this section— ‘Minister’ means the Minister for Education and Science; ‘relevant gift’ means a gift of money which— (a) on or after the 6th day of April, 1998, is made to STEIF, (b) is or will be applied by STEIF solely for the purposes for which the fund was established, and (c) apart from this section is not deductible in computing for the purposes of tax the profits or gains of a trade or profession, or is not income to which section 792 applies or is not a gift of money to which section 484 applies; ‘STEIF’ means the Scientific and Technological Education (Investment) Fund established under the Scientific and Technological Education (Investment) Fund Act, 1997 (as amended by the Scientific and Technological Education (Investment) Fund (Amendment) Act, 1998). (2) Where it is proved to the satisfaction of the Revenue Commissioners that a person has made a relevant gift and the person claims relief from tax by reference to that gift, subsection (5) or, as the case may be, subsection (6) shall apply. (3) Where a relevant gift is made by a chargeable person within the meaning of Part 41, a claim under this section shall be made with the return required to be delivered by that person under section 951 for the chargeable period in which the gift is made. (4) In determining the net amount of the relevant gift for the purposes of subsection (5) or subsection (6), the amount or value of any consideration received by the person concerned as a result of making the gift, whether received directly or indirectly from STEIF or otherwise, shall be deducted from the gift. (5) For the purposes of income tax for the year of assessment in which a person makes a relevant gift to which this section applies, the net amount of the gift shall be deducted from or set off against any income of the person chargeable to income tax for that year and tax shall where necessary be discharged or repaid accordingly, and the total income of the person or, where the person's spouse is assessed to income tax in accordance with section 1017, the total income of the spouse shall be calculated accordingly. (6) Where a relevant gift is made by a company, the net amount of the gift shall, for the purposes of corporation tax, be deemed to be a loss incurred by the company in a separate trade in the accounting period of the company in which the gift is made. (7) Relief under this section shall not be given to a person for any year of assessment or accounting period, as the case may be, if the net amount of the gift (or the aggregate of the net amount of gifts) made by such person in that year or accounting period, as the case may be, is less than £1,000. (8) STEIF, when required to do so by notice from the Minister, shall within the time limited by the notice prepare and deliver to the Minister a return containing particulars of the aggregate amount of relevant gifts received by it in the period specified in the notice and the disposal of such gifts. (9) For the purposes of a claim to relief under this section, STEIF shall, on acceptance of a relevant gift, give to the person making the gift a receipt which shall— (a) contain a statement that— (i) it is a receipt for the purposes of this section, and (ii) the gift in respect of which the receipt is given is a relevant gift for the purposes of this section, and (b) show— (i) the name and address of the person making the relevant gift, (ii) the amount of the relevant gift in both figures and words, (iii) the date of the relevant gift, (iv) the date on which the receipt was issued.”.

38 Amendment of section 225 (employment grants) of Principal Act.

38.—(1) Section 225(1) of the Principal Act is hereby amended by the substitution of the following paragraphs for paragraphs (a) and (b):

“(a) section 3 or 4 (as amended by the Shannon Free Airport Development Company Limited (Amendment) Act, 1983) of the Shannon Free Airport Development Company Limited (Amendment) Act, 1970,

(b) section 25 of the Industrial Development Act, 1986, or

(2) This section shall be deemed to have applied as respects a grant made on or after the 6th day of April, 1996.

39 Amendment of section 246 (interest payments by companies and to non-residents) of Principal Act.

39.—Section 246 of the Principal Act is hereby amended—

(a) in subsection (1)—

(i) by the insertion before the definition of “company” of the following:

“‘a collective investment undertaking’ means—

(a) a unit trust scheme which is or is deemed to be an authorised unit trust scheme (within the meaning of the Unit Trusts Act, 1990) and which has not had its authorisation under that Act revoked,

(b) any other undertaking which is an undertaking for collective investment in transferable securities within the meaning of the relevant Regulations (within the meaning of section 734) being an undertaking which holds an authorisation, which has not been revoked, issued pursuant to the relevant Regulations,

(i) has as its principal business, as expressed in the partnership agreement establishing the limited partnership, the investment of its funds in property, and

(ii) has been authorised to carry on that business, under any enactment providing for such authorisation, by the Central Bank of Ireland and which has not had its authorisation under such enactment revoked,

and

(d) any authorised investment company (within the meaning of Part XIII of the Companies Act, 1990)—

(i) which has not had its authorisation under that Part of that Act revoked, and

(ii) (I) which has been designated in that authorisation as an investment company which may raise capital by promoting the sale of its shares to the public and has not ceased to be so designated, or

(II) where all the holders of units are collective investors;

‘collective investor’ has the same meaning as in section 734(1);”,

(ii) by the insertion after the definition of “company” of the following:

“‘relevant person’ means—

(a) a company, or

(b) a collective investment undertaking;”,

(iii) in the definition of “relevant security”—

(I) by the substitution of “in the course of carrying on relevant trading operations within the meaning of section 445 or 446” for “on or before the 31st day of December, 2005”, and

(II) by the substitution of “issued;” for “issued.”,

and

(iv) by the insertion after the definition of “relevant security” of the following:

“‘relevant territory’ means—

(a) a Member State of the European Communities other than the State, or

(b) not being such a Member State, a territory with the government of which arrangements having the force of law by virtue of section 826 have been made.”,

(b) in subsection (3)—

(i) in paragraph (f), by the substitution of “section 700,” for “section 700, or”,

(ii) in paragraph (g), by the substitution of “distribution, or” for “distribution.”, and

(iii) by the insertion after paragraph (g) of the following:

“(h) interest, other than interest referred to in paragraphs (a) to (g), paid by a relevant person in the ordinary course of a trade or business carried on by that person to a company resident in a relevant territory except where such interest is paid to that company in connection with a trade or business which is carried on in the State by that company through a branch or agency.”,

and

“(a) as if in section 445 the following subsection were substituted for subsection (2) of that section:

‘(2) Subject to subsections (7) and (8), the Minister may give a certificate certifying that such trading operations of a qualified company as are specified in the certificate are, with effect from a date specified in the certificate, relevant trading operations for the purposes of this section.’,

and

(b) as if in section 446 the following subsection were substituted for subsection (2) of that section:

‘(2) Subject to subsections (7) and (9), the Minister may give a certificate certifying that such trading operations of a company as are specified in the certificate are, with effect from a date specified in the certificate, relevant trading operations for the purposes of this section.’.”.

40 Returns of interest paid to non-residents.

40.—Part 38 of the Principal Act is hereby amended by the addition, after section 891, of the following section—

“Returns of interest paid to non-residents.

891A.—(1) In this section— ‘appropriate inspector’ has the same meaning as in section 950(1); ‘chargeable period’ has the same meaning as in section 321(2); ‘relevant interest’ means interest to which subsection (2) of section 246 does not apply by virtue only of paragraph (h) (inserted by the Finance Act, 1999) of subsection (3) of that section; ‘relevant person’ has the same meaning as in section 246; ‘specified return date for the chargeable period’ has the same meaning as in section 894(1). (2) (a) Subject to paragraph (c), every relevant person who pays relevant interest in a chargeable period shall prepare and deliver to the appropriate inspector on or before the specified return date for the chargeable period a return of all relevant interest so paid by the relevant person in the chargeable period stating in the case of each person to whom that relevant interest was paid— (i) the name and address of the person, (ii) the amount of relevant interest paid to the person in the chargeable period, and (iii) the territory in which the person is resident for tax purposes. (b) Section 891 shall not apply, in respect of the payment of relevant interest, to any relevant person to whom paragraph (a) applies. (c) Sections 1052 and 1054 shall apply to a failure by a relevant person to deliver a return required by paragraph (a) and to each and every such failure, as they apply to a failure to deliver a return referred to in section 1052.”.

41 Amendment of Schedule 29 (provisions referred to in sections 1052, 1053 and 1054) to Principal Act.

41.—Schedule 29 to the Principal Act is hereby amended—

(a) in column 1 by the insertion after “section 951(1) and (2)” of “section 986 and Regulations under that section”, and

(b) in column 2 by the insertion after “section 891” of “section 891A”.

42 Amendment of section 2 (commencement) of Urban Renewal Act, 1998.

42.—Section 2 of the Urban Renewal Act, 1998, is hereby amended by the substitution of the following for subsection (5):

“(5) Subsection (1) of section 20 shall come into operation on such day or days as the Minister for Finance may appoint by order or orders and different days may be so appointed for different provisions of that subsection or for different purposes and, in particular, different days may be so appointed for the coming into operation of that subsection as respects different provisions of the definition of ‘specified period’ inserted in section 322 of the Taxes Consolidation Act, 1997.”.

43 Amendment of section 330 (interpretation (Chapter 2)) of Principal Act.

43.—Section 330 of the Principal Act is hereby amended, in subsection (1), by the substitution of the following for the definition of “qualifying period”:

“‘qualifying period’ means the period commencing—

(a) for the purposes of any provision of this Chapter other than section 334, 335 or 336, the 6th day of April, 1991, or

(b) for the purposes of sections 334 to 336, the 30th day of January, 1991,

and ending on—

(i) the 5th day of April, 1999, or

(ii) the 31st day of December, 1999, where, in relation to the construction of, conversion into, refurbishment of, or, as the case may be, construction or refurbishment of a house which is a qualifying premises within the meaning of section 334, 335, 336 or 337, the corporation of the country borough of Dublin gives a certificate in writing, on or before the 31st day of July, 1999, to the person constructing, converting or refurbishing, as the case may be, the house stating that it is satisfied that not less than 50 per cent of the total cost of the house and the site thereof had been incurred on or before the 5th day of April, 1999;”.

44 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.

44.—Chapter 3 of Part 10 of the Principal Act is hereby amended—

(a) in section 339(2), by the insertion after paragraph (c) of the following paragraph:

“(d) 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 which complies with the requirements of subparagraphs (i), (ii) and (iii) of paragraph (c), being a qualifying premises within the meaning of section 346, 347, 348 or 349, where—

(i) the expenditure to be incurred on the house has not been fully incurred by the 31st day of December, 1998, and

(ii) the relevant local authority gives a certificate in writing on or before the 28th day of February, 1999, to the person constructing, converting or refurbishing, as the case may be, the house stating that it is satisfied that not less than 50 per cent of the total cost of the house and the site thereof had been incurred on or before the 31st day of December, 1998,

then, 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 30th day of April, 1999.”,

(b) in section 340(1)(b), by the insertion after “the 31st day of July, 1997” of “, or, as the case may be, after the day to which the reference to the 31st day of July, 1997, is, by virtue of section 339(2), to be construed”,

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

“‘qualifying company’ means a company—

(a) (i) which has been approved for financial assistance under a scheme administered by Forfás, Enterprise Ireland, the Industrial Development Agency (Ireland) or údarás na Gaeltachta, or

(ii) which is engaged in a qualifying trading operation within the meaning of paragraph (c) of the definition of ‘qualifying trading operations’,

and

(b) to which the Minister has given a certificate under subsection (2) which has not been withdrawn in accordance with subsection (5) or (6);”,

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

“(a) on the recommendation of Forfás (in conjunction with Enterprise Ireland, the Industrial Development Agency (Ireland) or údarás na Gaeltachta, as may be appropriate, or the Minister for Public Enterprise in the case of a company to which paragraph (a)(ii) of the definition of ‘qualifying company’ refers) in accordance with guidelines laid down by the Minister, and”,

and

(iii) in subsection (8)(a), by the substitution, with effect as on and from the 1st day of January, 1998, for subparagraph (iv) of the following:

“(iv) the following subsection were substituted for subsection (4) of that section:

“(4) An industrial building allowance, in the case of a qualifying building (within the meaning of section 343(1)), shall be of an amount equal to—

(a) 25 per cent, or

(b) in the case of such a building the site of which is wholly within an area described in an order referred to in section 340(2)(i), 50 per cent,

of the capital expenditure mentioned in subsection (2).',”,

(d) in section 344—

(i) in subsection (1) in the definition of “qualifying period”—

(I) in paragraph (b), by the substitution of “of this definition, or” for “of this definition;”,

and

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

“(c) the 31st day of December, 2000, where, in relation to the construction or refurbishment of the qualifying multi-storey car park concerned (not being a qualifying multi-storey car park any part of the site of which is within either of the county boroughs of Cork or Dublin), the relevant local authority gives a certificate in writing on or before the 30th day of September, 1999, to the person constructing or refurbishing the qualifying multi-storey car park stating that it is satisfied that not less than 15 per cent of the total cost of the qualifying multi-storey car park and the site thereof had been incurred on or before the 30th day of June, 1999;”,

(ii) in subsection (2)(a), by the substitution of “subsections (3) to (6A)” for “subsections (3) to (6)”, and

(iii) by the insertion after subsection (6) of the following subsection:

“(6A) Subsection (6) shall apply and have effect as respects capital expenditure referred to in subsection (2)(b), which is incurred after the 31st day of July, 1998, only if a qualifying lease, within the meaning of section 345, is granted in respect of the qualifying multi-storey car park in respect of which that expenditure is incurred.”,

and

(e) in section 345—

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

“‘qualifying lease’ means, subject to subsections (1A) and (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 but, notwithstanding the foregoing, a lease which would otherwise be a qualifying lease shall not be such a lease if granted in respect of a building or structure within the meaning of paragraph (a)(iii) of the definition of ‘qualifying premises’ the site of which is wholly within an area—

(a) described in an order referred to in section 340(1)(a), if the lease is granted on or after the 31st day of July, 1999, or

(b) described in Schedule 7, if the lease is granted on or after the 31st day of December, 1999, or

and

(ii) by the insertion of the following subsection after subsection (1):

“(1A) Notwithstanding any other provision of this Chapter, including this section, ‘qualifying period’ for the purposes of this section in the case of a building or structure within the meaning of paragraph (a)(v) of the definition of ‘qualifying premises’ in subsection (1) means the period commencing on the 1st day of August, 1994, and ending on—

(a) the 31st day of July, 1997, or

(b) the 30th day of June, 1998, where, in relation to the construction or refurbishment of the qualifying multi-storey car park concerned, the relevant local authority has certified in accordance with the requirements of paragraph (b) of the definition of ‘qualifying period’ in section 344(1).”.

45 Amendment of section 351 (interpretation (Chapter 4)) of Principal Act.

45.—Section 351 of the Principal Act is hereby amended by the substitution of the following for the definition of “qualifying period”:

“‘qualifying period’ means the period commencing on the 1st day of July, 1995, and ending on—

(a) the 30th day of June, 1998, or

(b) the 31st day of December, 1999, where, in relation to the construction of, conversion into, refurbishment of, or, as the case may be, construction or refurbishment of the building or structure concerned, being—

(i) a building or structure to which section 352 applies, or

(ii) a qualifying premises within the meaning of section 353, 354, 356, 357 or 358,

the relevant local authority gives a certificate in writing, on or before the 30th day of September, 1999, to the person constructing, converting or refurbishing, as the case may be, the building or structure stating that it is satisfied that not less than 50 per cent of the total cost of the building or structure and the site thereof had been incurred on or before the 30th day of June, 1999, and, in considering whether to give such a certificate, the relevant local authority shall have regard only to guidelines in relation to the giving of such certificates issued by the Department of the Environment and Local Government for the purposes of this definition;”.

46 Amendment of section 360 (interpretation (Chapter 5)) of Principal Act.

46.—Section 360 of the Principal Act is hereby amended—

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

“‘qualifying period’ means the period commencing on the 1st day of August, 1996, and ending on—

(a) the 31st day of July, 1999, or

(b) the 31st day of December, 1999, where, in relation to the construction of, conversion into, refurbishment of, or, as the case may be, construction or refurbishment of a house which is a qualifying premises within the meaning of section 361, 362, 363, or 364, the relevant local authority gives a certificate in writing, on or before the 31st day of October, 1999, to the person constructing, converting or refurbishing, as the case may be, the house stating that it is satisfied that not less than 50 per cent of the total cost of the house and the site thereof had been incurred on or before the 31st day of July, 1999;”,

and

(b) by the insertion of the following definition after the definition of “qualifying period”:

“‘the relevant local authority’, in relation to the construction of, conversion into, refurbishment of, or, as the case may be, construction or refurbishment of a house of the kind referred to in paragraph (b) of the definition of ‘qualifying period’, means the council of a county or the corporation of a county or other borough or, where appropriate, the urban district council, in whose functional area the house is situated;”.

47 Amendment of Chapter 8 (qualifying rural areas) of Part 10 of Principal Act.

47.—(1) Chapter 8 of Part 10 of the Principal Act is hereby amended—

(a) in section 372L—

(i) in the definition of “qualifying period” (inserted by the Finance (No. 2) Act, 1998), by the substitution of the following for paragraph (b):

“(b) for the purposes of sections 372P, 372Q, 372R and (in so far as it relates to those sections) section 372S, the period commencing on the 1st day of June, 1998, and ending on the 31st day of December, 2001, and

(c) for the purposes of section 372RA and (in so far as it relates to that section) section 372S, the period commencing on the 6th day of April, 1999, and ending on the 31st day of December, 2001;”, and

(ii) in the definition of “refurbishment”, by the substitution of “sections 372R and 372RA” for “section 372R”,

(b) in section 372M(1), by the substitution of “paragraph (a) or (b) of section 268(1)” for “section 268(1)(a)”,

(i) in the definition of “qualifying lease”, by the substitution of “3 months” for “12 months”, and

(ii) in the definition of “qualifying premises”, by the substitution of “140 square metres” for “125 square metres”,

(d) in section 372Q(1)—

(i) in the definition of “qualifying lease”, by the substitution of “3 months” for “12 months”, and

(ii) in the definition of “qualifying premises”, by the substitution of “150 square metres” for “125 square metres”,

(e) in section 372R(1)—

(i) in the definition of “qualifying lease”, by the substitution of “3 months” for “12 months”, and

(ii) in the definition of “qualifying premises”, by the substitution of “150 square metres” for “125 square metres”,

(f) by the insertion of the following section after section 372R:

“Residential accommodation: allowance to owner-occupiers in respect of certain expenditure on construction or refurbishment.

372RA.—(1) In this section— ‘qualifying expenditure’, in relation to an individual, means an amount equal to the amount of the expenditure incurred by the individual on the construction or, as the case may be, refurbishment of a qualifying premises which is a qualifying owner-occupied dwelling in relation to the individual after deducting from that amount of expenditure any sum in respect of or by reference to— (a) that expenditure, (b) the qualifying premises, or (c) the construction or, as the case may be, refurbishment work in respect of which that expenditure was incurred, which the individual has received or is entitled to receive, directly or indirectly, from the State, any board established by statute or any public or local authority; ‘qualifying owner-occupied dwelling’, in relation to an individual, means a qualifying premises which is first used, after the qualifying expenditure has been incurred, by the individual as his or her only or main residence; ‘qualifying premises’, in relation to the incurring of qualifying expenditure, means, subject to subsections (4) and (5) of section 372S, a house— (a) the site of which is wholly within a qualifying rural area, (b) which is used solely as a dwelling, (c) in respect of which, if it is not a new house (for the purposes of section 4 of the Housing (Miscellaneous Provisions) Act, 1979) provided for sale, there is in force a certificate of reasonable cost the amount specified in which in respect of the cost of construction or, as the case may be, refurbishment of the house is not less than the expenditure actually incurred on such construction or refurbishment, as the case may be, and (d) the total floor area of which is not less than 38 square metres and not more than— (i) in the case where the qualifying expenditure has been incurred on the construction of the qualifying premises, 210 square metres, or (ii) in the case where the qualifying expenditure has been incurred on the refurbishment of the qualifying premises, 210 square metres; ‘refurbishment’ has the same meaning as in section 372R. (2) (a) Where an individual, having made a claim in that behalf, proves to have incurred qualifying expenditure in a year of assessment, the individual shall be entitled, for that year of assessment and for any of the 9 subsequent years of assessment in which the qualifying premises in respect of which the individual incurred the qualifying expenditure is the only or main residence of the individual, to have a deduction made from his or her total income of an amount equal to— (i) in the case where the qualifying expenditure has been incurred on the construction of the qualifying premises, 5 per cent of the amount of that expenditure, or (ii) in the case where the qualifying expenditure has been incurred on the refurbishment of the qualifying premises, 10 per cent of the amount of that expenditure. (b) A deduction shall be given under this section in respect of qualifying expenditure only in so far as that expenditure is to be treated under section 372S(7) as having been incurred in the qualifying period. (3) Where qualifying expenditure in relation to a qualifying premises is incurred by 2 or more persons, each of those persons shall be treated as having incurred the expenditure in the proportions in which they actually bore the expenditure, and the expenditure shall be apportioned accordingly. (4) Section 372S shall apply for the purposes of supplementing this section.”,

and

(g) (i) in section 372S(1)—

(I) by the substitution of “In sections 372P to 372RA” for “In sections 372P to 372R”, and

(II) in the definition of “certificate of reasonable cost”, by the substitution of “372Q, 372R or 372RA” for “372Q or 372R”,

(ii) in section 372S(4)(a), by the insertion after “section 372P” of “or, in so far as it applies to expenditure other than expenditure on refurbishment, section 372RA”,

(iii) in section 372S(4)(b), by the insertion after “section 372Q or 372R” of “or, in so far as it applies to expenditure on refurbishment, section 372RA”,

(iv) by the substitution of the following for subsection (5):

“(5) A house shall not be a qualifying premises—

(a) for the purposes of section 372P, 372Q, 372R or 372RA, unless persons authorised in writing by the Minister for the Environment and Local Government for the purposes of those sections are premitted to inspect the house at all reasonable times on production, if so requested by a person affected, of their authorisations, and

(b) for the purposes of sections 372P, 372Q or 372R, unless, throughout the period of any qualifying lease related to that premises, the house is used as the sole or main residence of the lessee in relation to that qualifying lease.”,

(v) in section 372S(6)—

(I) by the substitution of “sections 372P to 372RA” for “sections 372P to 372R”, and

(II) by the substitution of “refurbishment of, or, as the case may be, construction or refurbishment of,” for “or refurbishment of,”,

(vi) in section 372S(7)(a)—

(I) by the substitution of “, 372R(2) or 372RA(2)” for “or 372R(2)”, and

(II) by the substitution of “refurbishment of, or, as the case may be, construction or refurbishment of,” for “or refurbishment of,” in both places where it occurs,

(vii) in section 372S(7)(b), by the substitution of “refurbishment of, or, as the case may be, construction or refurbishment of,” for “or refurbishment of,” in both places where it occurs,

(viii) in section 372S(8), by the insertion of the following paragraph after paragraph (b):

“(c) For the purposes of section 372RA other than the purposes mentioned in subsection (7)(a), expenditure incurred on the construction or refurbishment of a qualifying premises shall be deemed to have been incurred on the earliest date after the expenditure was actually incurred on which the premises is in use as a dwelling.”, and

(ix) in section 372S(11), by the substitution of “, 372R or 372RA” for “or 372R”.

(2) The Principal Act is hereby amended—

(a) in section 458 by the insertion in Part 1 of the Table to that section after “Section 371” of “Section 372I Section 372RA”,

and

(b) by the substitution in section 1024(2)(a)(i) of “364, 371, 372I and 372RA” for “364 and 371”.

48 Capital allowances for private convalescent homes.

48.—Part 9 (as amended by the Finance Act, 1998) of the Principal Act is hereby amended—

(a) in section 268—

(i) in subsection (1)—

(I) in paragraph (g), by the substitution of “section 4 of that Act,” for “section 4 of that Act, or”,

(II) in paragraph (h), by the substitution of “paragraph (f) relates, or” for “paragraph (f) relates,” and

(III) by the insertion after paragraph (h) of the following paragraph:

“(i) for the purposes of a trade which consists of the operation or management of a convalescent home for the provision of medical and nursing care for persons recovering from treatment in a hospital, being a hospital that provides treatment for acutely ill patients, and in respect of which convalescent home the health board, in whose functional area the convalescent home is situated, gives a certificate in writing to the person operating or managing the convalescent home stating that it is satisfied that the convalescent home meets the requirements and standards set out in the guidelines in relation to the operation and management of convalescent homes issued by the Minister for Health and Children with the consent of the Minister for Finance,”,

and

(ii) in subsection (9)—

(I) in paragraph (d), by the deletion of “and”,

(II) in paragraph (e), by the substitution of the following for subparagraph (ii):

“(ii) by any other person on or after the date of the passing of the Finance Act, 1998,

and”,

and

(III) by the insertion after paragraph (e) of the following paragraph:

“(f) by reference to paragraph (i), as respects capital expenditure incurred on or after the 2nd day of December, 1998.”,

(b) in section 272—

(i) in subsection (3), by the substitution of the following for paragraph (f):

“(f) in relation to a building or structure which is to be regarded as an industrial building or structure within the meaning of paragraph (g) or (i) of section 268(1), 15 per cent of the expenditure referred to in subsection (2)(c), and”,

and

(ii) in subsection (4), by the substitution of the following for paragraph (f):

“(f) in relation to a building or structure which is to be regarded as an industrial building or structure within the meaning of paragraph (g) or (i) of section 268(1), 7 years beginning with the time when the building or structure was first used, and”,

and

“(ii) in relation to a building or structure which is to be regarded as an industrial building or structure within the meaning of paragraph (c), (e), (g) or (i) of section 268(1), 10 years after the building or structure was first used,”.

49 Capital allowances for buildings used for certain childcare purposes.

49.—The Principal Act is hereby amended—

(a) in section 409A (inserted by the Finance Act, 1998), by the insertion in paragraph (b) of the definition of “specified building” in subsection (1), after “section 843”, of “or 843A”, and

(b) in Part 36, by the insertion after section 843 of the following section:

“Capital allowances for buildings used for certain childcare purposes.

843A.—(1) In this section— ‘pre-school child’ and ‘pre-school service’ have the meanings respectively assigned to them by section 49 of the Child Care Act, 1991; ‘qualifying expenditure’ means capital expenditure incurred on or after the 2nd day of December, 1998, on the construction, conversion or refurbishment of a qualifying premises; ‘qualifying premises’ means a building or structure which— (a) apart from this section is not an industrial building or structure within the meaning of section 268, and (b) is in use for the purposes of providing— (i) a pre-school service, or (ii) a pre-school service and a day-care or other service to cater for children other than pre-school children, and in respect of which it can be shown (to the extent that it is being used for the purposes of providing a pre-school service) that the requirements of Article 9, 10(1) or 11, as appropriate, of the Child Care (Pre-School Services) Regulations, 1996 (S.I. No. 398 of 1996), have been complied with, but does not include any part of a building or structure in use as or as part of a dwelling-house. (2) Subject to subsections (3) to (5), the provisions of the Tax Acts relating to the making of allowances or charges in respect of capital expenditure incurred on the construction or refurbishment of an industrial building or structure shall, notwithstanding anything to the contrary in those provisions, apply in relation to qualifying expenditure on a qualifying premises— (a) as if a qualifying premises were, at all times at which it is a qualifying premises, a building or structure in respect of which an allowance is to be made for the purposes of income tax or corporation tax, as the case may be, under Part 9 by reason of its use for a purpose specified in section 268(1)(a), and (b) where any activity carried on in the qualifying premises is not a trade, as if it were a trade. (3) In relation to qualifying expenditure on a qualifying premises section 272 shall apply as if— (a) in subsection (3)(a)(ii) of that section the reference to 4 per cent were a reference to 15 per cent, and (b) in subsection (4)(a)(ii) of that section the reference to 25 years were a reference to 7 years. (4) Notwithstanding section 274(1), no balancing allowance or balancing charge shall be made in relation to a qualifying premises by reason of any event referred to in that section which occurs— (a) more than 10 years after the qualifying premises was first used, or (b) in a case where section 276 applies, more than 10 years after the qualifying expenditure on refurbishment of the qualifying premises was incurred.”.

50 Relief for provision of certain student accommodation.

50.—The Principal Act is hereby amended by the insertion after Part 11 of the following:

“PART 11A

Interpretation (Part 11A).	380A.—In this Part— ‘lease’, ‘lessee’, ‘lessor’, ‘premium’ and ‘rent’ have the same meanings respectively as in Chapter 8 of Part 4; ‘market value’, in relation to a building, structure or house, means the price which the unencumbered fee simple of the building, structure or house would fetch if sold in the open market in such manner and subject to such conditions as might reasonably be calculated to obtain for the vendor the best price for the building, structure or house, less the part of that price which would be attributable to the acquisition of, or of rights in or over, the land on which the building, structure or house is constructed; ‘qualifying area’ means an area or areas specified as a qualifying area in the relevant guidelines; ‘qualifying period’ means, the period commencing on the 1st day of April, 1999, and ending on the 31st day of March, 2003; ‘the relevant guidelines’ means guidelines issued for the purposes of this Part by the Minister for Education and Science in consultation with the Minister for the Environment and Local Government and with the consent of the Minister for Finance and, without prejudice to the generality of the foregoing, such guidelines may include provisions in relation to all or any one or more of the following— (i) the design and the construction of, conversion into, or refurbishment of, houses, (ii) the total floor area and dimensions of rooms within houses, measured in such manner as may be determined by the Minister for the Environment and Local Government, (iii) the provision of ancillary facilities and amenities in relation to houses, (iv) the granting of certificates of reasonable cost, (v) the designation of qualifying areas, (vi) the terms and conditions relating to qualifying leases, and (vii) the educational institutions and the students attending those institutions for whom the accommodation is provided.
Rented residential accommodation: deduction for certain expenditure on construction.	380B.—(1) In this section— ‘qualifying lease’, in relation to a house, means, subject to section 380E(2), a lease of the house the consideration for the grant of which consists— (a) solely of periodic payments all of which are or are to be treated as rent for the purposes of Chapter 8 of Part 4, or (b) of payments of the kind mentioned in paragraph (a), together with a payment by means of a premium which does not exceed 10 per cent of the relevant cost of the house; ‘qualifying premises’ means, subject to subsections (3), (4)(a), (5) and (6) of section 380E, a house— (a) the site of which is wholly within a qualifying area, (b) which is used solely as a dwelling, (c) the total floor area of which complies with the requirements of the relevant guidelines, (d) in respect of which, if it is not a new house (for the purposes of section 4 of the Housing (Miscellaneous Provisions) Act, 1979) provided for sale, there is in force a certificate of reasonable cost, the amount specified in which in respect of the cost of construction of the house is not less than the expenditure actually incurred on such construction, and (e) which without having been used is first let in its entirety under a qualifying lease and thereafter throughout the remainder of the relevant period (except for reasonable periods of temporary disuse between the ending of one qualifying lease and the commencement of another such lease) continues to be let under such a lease; ‘relevant cost’, in relation to a house, means, subject to subsection (4), an amount equal to the aggregate of— (a) the expenditure incurred on the acquisition of, or of rights in or over, any land on which the house is constructed, and (b) the expenditure actually incurred on the construction of the house; ‘relevant period’, in relation to a qualifying premises, means the period of 10 years beginning on the date of the first letting of the premises under a qualifying lease. (2) Subject to subsection (3), where a person, having made a claim in that behalf, proves to have incurred expenditure on the construction of a qualifying premises— (a) such person shall be entitled, in computing for the purposes of section 97(1) the amount of a surplus or deficiency in respect of the rent from the qualifying premises, to a deduction of so much (if any) of that expenditure as is to be treated under section 380E(8) or under this section as having been incurred by such person in the qualifying period, and (b) Chapter 8 of Part 4 shall apply as if that deduction were a deduction authorised by section 97(2). (3) (a) This subsection shall apply to any premium or other sum which is payable, directly or indirectly, under a qualifying lease or otherwise under the terms subject to which the lease is granted, to or for the benefit of the lessor or to or for the benefit of any person connected with the lessor. (b) Where any premium or other sum to which this subsection applies, or any part of such premium or such other sum, is not or is not treated as rent for the purposes of section 97, the expenditure to be treated as having been incurred in the qualifying period on the construction of the qualifying premises to which the qualifying lease relates shall be deemed for the purposes of subsection (2) to be reduced by the lesser of— (i) the amount of such premium or such other sum or, as the case may be, that part of such premium or such other sum, and (ii) the amount which bears to the amount mentioned in subparagraph (i) the same proportion as the amount of the expenditure actually incurred on the construction of the qualifying premises which is to be treated under section 380E(8) as having been incurred in the qualifying period bears to the whole of the expenditure incurred on that construction. (4) Where a qualifying premises forms a part of a building or is one of a number of buildings in a single development, or forms a part of a building which is itself one of a number of buildings in a single development, there shall be made such apportionment as is necessary— (a) of the expenditure incurred on the construction of that building or those buildings, and (b) of the amount which would be the relevant cost in relation to that building or those buildings if the building or buildings, as the case may be, were a single qualifying premises, for the purposes of determining the expenditure incurred on the construction of the qualifying premises and the relevant cost in relation to the qualifying premises. (5) Where a house is a qualifying premises and at any time during the relevant period in relation to the premises either of the following events occurs— (a) the house ceases to be a qualifying premises, or (b) the ownership of the lessor's interest in the house passes to any other person but the house does not cease to be a qualifying premises, then, the person who before the occurrence of the event received or was entitled to receive a deduction under subsection (2) in respect of expenditure incurred on the construction of the qualifying premises shall be deemed to have received on the day before the day of the occurrence of the event an amount as rent from the qualifying premises equal to the amount of the deduction. (6) (a) Where the event mentioned in subsection (5)(b) occurs in the relevant period in relation to a house which is a qualifying premises, the person to whom the ownership of the lessor's interest in the house passes shall be treated for the purposes of this section as having incurred in the qualifying period an amount of expenditure on the construction of the house equal to the amount which under section 380E(8) or under this section (apart from subsection (3)(b)) the lessor was treated as having incurred in the qualifying period on the construction of the house, but, in the case of a person who purchases such a house, the amount so treated as having been incurred by such person shall not exceed the relevant price paid by such person on the purchase. (b) For the purposes of this subsection and subsection (7), the relevant price paid by a person on the purchase of a house shall be the amount which bears to the net price paid by such person on that purchase the same proportion as the amount of the expenditure actually incurred on the construction of the house which is to be treated under section 380E(8) as having been incurred in the qualifying period bears to the relevant cost in relation to that house. (7) (a) Subject to paragraph (b), where expenditure is incurred on the construction of a house and before the house is used it is sold, the person who purchases the house shall be treated for the purposes of this section as having incurred in the qualifying period expenditure on the construction of the house equal to the lesser of— (i) the amount of such expenditure which is to be treated under section 380E(8) as having been incurred in the qualifying period, and (ii) the relevant price paid by such person on the purchase, but, where the house is sold more than once before it is used, this subsection shall apply only in relation to the last of those sales. (b) Where expenditure is incurred on the construction of a house by a person carrying on a trade or part of a trade which consists, as to the whole or any part of the trade, of the construction of buildings with a view to their sale and the house, before it is used, is sold in the course of that trade or, as the case may be, that part of that trade— (i) the person (in this paragraph referred to as ‘the purchaser’) who purchases the house shall be treated for the purposes of this section as having incurred in the qualifying period expenditure on the construction of the house equal to the relevant price paid by the purchaser on the purchase (in this paragraph referred to as ‘the first purchase’), and (ii) in relation to any subsequent sale or sales of the house before the house is used, paragraph (a) shall apply as if the reference to the amount of expenditure which is to be treated as having been incurred in the qualifying period were a reference to the relevant price paid on the first purchase. (8) Section 380E shall apply for the purposes of supplementing this section.
Rented residential accommodation: deduction for certain expenditure on conversion.	380C.—(1) In this section— ‘conversion expenditure’ means, subject to subsection (2), expenditure incurred on— (a) the conversion into a house of a building— (i) the site of which is wholly within a qualifying area, and (ii) which has not been previously in use as a dwelling, and (b) the conversion into 2 or more houses of a building— (i) the site of which is wholly within a qualifying area, and (ii) which before the conversion had not been in use as a dwelling or had been in use as a single dwelling, and references in this section and in section 380E to ‘conversion’, ‘conversion into a house’ and ‘expenditure incurred on conversion’ shall be construed accordingly; ‘qualifying lease’, in relation to a house, means, subject to section 380E(2), a lease of the house the consideration for the grant of which consists— (a) solely of periodic payments all of which are or are to be treated as rent for the purposes of Chapter 8 of Part 4, or (b) of payments of the kind mentioned in paragraph (a), together with a payment by means of a premium which does not exceed 10 per cent of the market value of the house at the time the conversion is completed and, in the case of a house which is a part of a building and is not saleable apart from the building of which it is a part, the market value of the house at the time the conversion is completed shall for the purposes of this paragraph be taken to be an amount which bears to the market value of the building at that time the same proportion as the total floor area of the house bears to the total floor area of the building; ‘qualifying premises’ means, subject to subsections (3), (4)(b), (5) and (6) of section 380E, a house— (a) which is used solely as a dwelling, (b) the total floor area of which complies with the requirements of the relevant guidelines, (c) in respect of which there is in force a certificate of reasonable cost the amount specified in which in respect of the cost of conversion in relation to the house is not less than the expenditure actually incurred on such conversion, and (d) which without having been used subsequent to the incurring of the expenditure on the conversion is first let in its entirety under a qualifying lease and thereafter throughout the remainder of the relevant period (except for reasonable periods of temporary disuse between the ending of one qualifying lease and the commencement of another such lease) continues to be let under such a lease; ‘relevant period’, in relation to a qualifying premises, means the period of 10 years beginning on the date of the first letting of the premises under a qualifying lease. (2) For the purposes of this section, expenditure incurred on the conversion of a building shall be deemed to include expenditure incurred in the course of the conversion on either or both of the following— (a) the carrying out of any works of construction, reconstruction, repair or renewal, and (b) the provision or improvement of water, sewerage or heating facilities, in relation to the building or any outoffice appurtenant to or usually enjoyed with the building, but shall not be deemed to include— (i) any expenditure in respect of which any person is entitled to a deduction, relief or allowance under any other provision of the Tax Acts, or (ii) any expenditure attributable to any part (in this section referred to as a ‘non-residential unit’) of the building which on completion of the conversion is not a house. (3) For the purposes of subsection (2)(ii), where expenditure is attributable to a building in general and not directly to any particular house or non-residential unit comprised in the building on completion of the conversion, such an amount of that expenditure shall be deemed to be attributable to a non-residential unit as bears to the whole of that expenditure the same proportion as the total floor area of the non-residential unit bears to the total floor area of the building. (4) Subject to subsection (5), where a person, having made a claim in that behalf, proves to have incurred conversion expenditure in relation to a house which is a qualifying premises— (a) such person shall be entitled, in computing for the purposes of section 97(1) the amount of a surplus or deficiency in respect of the rent from the qualifying premises, to a deduction of so much (if any) of the expenditure as is to be treated under section 380E(8) or under this section as having been incurred by such person in the qualifying period, and (b) Chapter 8 of Part 4 shall apply as if that deduction were a deduction authorised by section 97(2). (5) (a) This subsection shall apply to any premium or other sum which is payable, directly or indirectly, under a qualifying lease or otherwise under the terms subject to which the lease is granted, to or for the benefit of the lessor or to or for the benefit of any person connected with the lessor. (b) Where any premium or other sum to which this subsection applies, or any part of such premium or such other sum, is not or is not treated as rent for the purposes of section 97, the conversion expenditure to be treated as having been incurred in the qualifying period in relation to the qualifying premises to which the qualifying lease relates shall be deemed for the purposes of subsection (4) to be reduced by the lesser of— (i) the amount of such premium or such other sum or, as the case may be, that part of such premium or such other sum, and (ii) the amount which bears to the amount mentioned in subparagraph (i) the same proportion as the amount of the conversion expenditure actually incurred in relation to the qualifying premises (which is to be treated under section 380E(8) as having been incurred in the qualifying period) bears to the whole of the conversion expenditure incurred in relation to the qualifying premises. (6) Where a qualifying premises forms a part of a building or is one of a number of buildings in a single development, or forms a part of a building which is itself one of a number of buildings in a single development, there shall be made such apportionment as is necessary of the expenditure incurred on the conversion of that building or those buildings for the purposes of determining the conversion expenditure incurred in relation to the qualifying premises. (7) Where a house is a qualifying premises and at any time during the relevant period in relation to the premises either of the following events occurs— (a) the house ceases to be a qualifying premises, or (b) the ownership of the lessor's interest in the house passes to any other person but the house does not cease to be a qualifying premises, then, the person who before the occurrence of the event received or was entitled to receive a deduction under subsection (4) in respect of conversion expenditure incurred in relation to the qualifying premises shall be deemed to have received on the day before the day of the occurrence of the event an amount as rent from the qualifying premises equal to the amount of the deduction. (8) Where the event mentioned in subsection (7)(b) occurs in the relevant period in relation to a house which is a qualifying premises, the person to whom the ownership of the lessor's interest in the house passes shall be treated for the purposes of this section as having incurred in the qualifying period an amount of conversion expenditure in relation to the house equal to the amount of the conversion expenditure which under section 380E(8) or under this section (apart from subsection (5)(b)) the lessor was treated as having incurred in the qualifying period in relation to the house, but, in the case of a person who purchases such a house, the amount so treated as having been incurred by such person shall not exceed— (a) the net price paid by such person on the purchase, or (b) in case only a part of the conversion expenditure incurred in relation to the house is to be treated under section 380E(8) as having been incurred in the qualifying period, the amount which bears to that net price the same proportion as that part bears to the whole of the conversion expenditure incurred in relation to the house. (9) Where conversion expenditure is incurred in relation to a house and before the house is used subsequent to the incurring of that expenditure it is sold, the person who purchases the house shall be treated for the purposes of this section as having incurred in the qualifying period conversion expenditure in relation to the house equal to the lesser of— (a) the amount of such expenditure which is to be treated under section 380E(8) as having been incurred in the qualifying period, and (b) (i) the net price paid by such person on the purchase, or (ii) in case only a part of the conversion expenditure incurred in relation to the house is to be treated under section 380E(8) as having been incurred in the qualifying period, the amount which bears to that net price the same proportion as that part bears to the whole of the conversion expenditure incurred in relation to the house, but, where the house is sold more than once before it is used subsequent to the incurring of the conversion expenditure in relation to the house, this subsection shall apply only in relation to the last of those sales. (10) This section shall not apply in the case of a conversion unless planning permission in respect of the conversion has been granted under the Local Government (Planning and Development) Acts, 1963 to 1998. (11) Section 380E shall apply for the purposes of supplementing this section.
Rented residential accommodation: deduction for certain expenditure on refurbishment.	380D.—(1) In this section— ‘qualifying lease’, in relation to a house, means, subject to section 380E(2), a lease of the house the consideration for the grant of which consists— (a) solely of periodic payments all of which are or are to be treated as rent for the purposes of Chapter 8 of Part 4, or (b) of payments of the kind mentioned in paragraph (a), together with a payment by means of a premium— (i) which is payable on or subsequent to the date of the completion of the refurbishment to which the relevant expenditure relates or which, if payable before that date, is so payable by reason of or otherwise in connection with the carrying out of the refurbishment, and (ii) which does not exceed 10 per cent of the market value of the house on the date of completion of the refurbishment to which the relevant expenditure relates and, in the case of a house which is a part of a building and is not saleable apart from the building of which it is a part, the market value of the house on that date shall for the purposes of this subparagraph be taken to be an amount which bears to the market value of the building on that date the same proportion as the total floor area of the house bears to the total floor area of the building; ‘qualifying premises’ means, subject to subsections (3), (4)(b), (5) and (6) of section 380E, a house— (a) which is used solely as a dwelling, (b) the total floor area of which complies with the requirements of the relevant guidelines, (c) in respect of which there is in force a certificate of reasonable cost the amount specified in which in respect of the cost of refurbishment in relation to the house is not less than the relevant expenditure actually incurred on such refurbishment, and (d) which on the date of completion of the refurbishment to which the relevant expenditure relates is let (or, if not let on that date, is, without having been used after that date, first let) in its entirety under a qualifying lease and thereafter throughout the remainder of the relevant period (except for reasonable periods of temporary disuse between the ending of one qualifying lease and the commencement of another such lease) continues to be let under such a lease; ‘refurbishment’, in relation to a building, means either or both of the following— (a) the carrying out of any works of construction, reconstruction, repair or renewal, and (b) the provision or improvement of water, sewerage or heating facilities, where the carrying out of such works or the provision of such facilities is certified by the Minister for the Environment and Local Government, in any certificate of reasonable cost granted by that Minister in relation to any house contained in the building, to have been necessary for the purposes of ensuring the suitability as a dwelling of any house in the building and whether or not the number of houses in the building, or the shape or size of any such house, is altered in the course of such refurbishment; ‘relevant expenditure’ means expenditure incurred on the refurbishment of a specified building, other than expenditure attributable to any part (in this section referred to as a ‘non-residential unit’) of the building which on completion of the refurbishment is not a house, and for the purposes of this definition where expenditure is attributable to the specified building in general (and not directly to any particular house or non-residential unit comprised in the building on completion of the refurbishment), such an amount of that expenditure shall be deemed to be attributable to a non-residential unit as bears to the whole of that expenditure the same proportion as the total floor area of the non-residential unit bears to the total floor area of the building; ‘relevant period’, in relation to a qualifying premises, means the period of 10 years beginning on the date of the completion of the refurbishment to which the relevant expenditure relates or, if the premises was not let under a qualifying lease on that date, the period of 10 years beginning on the date of the first such letting after the date of such completion; ‘specified building’ means a building— (a) the site of which is wholly within a qualifying area, (b) in which before the refurbishment to which the relevant expenditure relates there are 2 or more houses, and (c) which on completion of that refurbishment contains (whether in addition to any non-residential unit or not) 2 or more houses. (2) Subject to subsection (3), where a person, having made a claim in that behalf, proves to have incurred relevant expenditure in relation to a house which is a qualifying premises— (a) such person shall be entitled, in computing for the purposes of section 97(1) the amount of a surplus or deficiency in respect of the rent from the qualifying premises, to a deduction of so much (if any) of the expenditure as is to be treated under section 380E(8) or under this section as having been incurred by such person in the qualifying period, and (b) Chapter 8 of Part 4 shall apply as if that deduction were a deduction authorised by section 97(2). (3) (a) This subsection shall apply to any premium or other sum which— (i) is payable, directly or indirectly, under a qualifying lease or otherwise under the terms subject to which the lease is granted, to or for the benefit of the lessor or to or for the benefit of any person connected with the lessor, and (ii) is payable on or subsequent to the date of completion of the refurbishment to which the relevant expenditure relates or, if payable before that date, is so payable by reason of or otherwise in connection with the carrying out of the refurbishment. (b) Where any premium or other sum to which this subsection applies, or any part of such premium or such other sum, is not or is not treated as rent for the purposes of section 97, the relevant expenditure to be treated as having been incurred in the qualifying period in relation to the qualifying premises to which the qualifying lease relates shall be deemed for the purposes of subsection (2) to be reduced by the lesser of— (i) the amount of such premium or such other sum or, as the case may be, that part of such premium or such other sum, and (ii) the amount which bears to the amount mentioned in subparagraph (i) the same proportion as the amount of the relevant expenditure actually incurred in relation to the qualifying premises (which is to be treated under section 380E(8) as having been incurred in the qualifying period) bears to the whole of the relevant expenditure incurred in relation to the qualifying premises. (4) Where a qualifying premises forms a part of a building or is one of a number of buildings in a single development, or forms a part of a building which is itself one of a number of buildings in a single development, there shall be made such apportionment as is necessary of the relevant expenditure incurred on that building or those buildings for the purposes of determining the relevant expenditure incurred in relation to the qualifying premises. (5) Where a house is a qualifying premises and at any time during the relevant period in relation to the premises either of the following events occurs— (a) the house ceases to be a qualifying premises, or (b) the ownership of the lessor's interest in the house passes to any other person but the house does not cease to be a qualifying premises. then, the person who before the occurrence of the event received or was entitled to receive a deduction under subsection (2) in respect of relevant expenditure incurred in relation to the qualifying premises shall be deemed to have received on the day before the day of the occurrence of the event an amount as rent from the qualifying premises equal to the amount of the deduction. (6) Where the event mentioned in subsection (5)(b) occurs in the relevant period in relation to a house which is a qualifying premises, the person to whom the ownership of the lessor's interest in the house passes shall be treated for the purposes of this section as having incurred in the qualifying period an amount of relevant expenditure in relation to the house equal to the amount of the relevant expenditure which under section 380E(8) or under this section (apart from subsection (3)(b)) the lessor was treated as having incurred in the qualifying period in relation to the house, but, in the case of a person who purchases such a house, the amount so treated as having been incurred by such person shall not exceed— (a) the net price paid by such person on the purchase, or (b) in case only a part of the relevant expenditure incurred in relation to the house is to be treated under section 380E(8) as having been incurred in the qualifying period, the amount which bears to that net price the same proportion as that part bears to the whole of the relevant expenditure incurred in relation to the house. (7) Where relevant expenditure is incurred in relation to a house and before the house is used subsequent to the incurring of that expenditure it is sold, the person who purchases the house shall be treated for the purposes of this section as having incurred in the qualifying period relevant expenditure in relation to the house equal to the lesser of— (a) the amount of such expenditure which is to be treated under section 380E(8) as having been incurred in the qualifying period, and (b) (i) the net price paid by such person on the purchase, or (ii) in case only a part of the relevant expenditure incurred in relation to the house is to be treated under section 380E(8) as having been incurred in the qualifying period, the amount which bears to that net price the same proportion as that part bears to the whole of the relevant expenditure incurred in relation to the house, but, where the house is sold more than once before it is used subsequent to the incurring of the relevant expenditure in relation to the house, this subsection shall apply only in relation to the last of those sales. (8) This section shall not apply in the case of any refurbishment unless planning permission, in so far as it is required, in respect of the work carried out in the course of the refurbishment has been granted under the Local Government (Planning and Development) Acts, 1963 to 1998. (9) Expenditure in respect of which a person is entitled to relief under this section shall not include any expenditure in respect of which any person is entitled to a deduction, relief or allowance under any other provision of the Tax Acts. (10) Section 380E shall apply for the purposes of supplementing this section.
Provisions supplementary to sections 380B to 380D.	380E.—(1) In sections 380B to 380D— ‘certificate of reasonable cost’ means a certificate granted, having regard to the relevant guidelines, by the Minister for the Environment and Local Government for the purposes of section 380B, 380C or 380D, as the case may be, stating that the amount specified in the certificate in relation to the cost of construction of, conversion into, or refurbishment of, the house to which the certificate relates appears to that Minister at the time of the granting of the certificate and on the basis of the information available to that Minister at that time to be reasonable, and section 18 of the Housing (Miscellaneous Provisions) Act, 1979, shall, with any necessary modifications, apply to a certificate of reasonable cost as if it were a certificate of reasonable value within the meaning of that section; ‘house’ includes any building or part of a building used or suitable for use as a dwelling and any outoffice, yard, garden or other land appurtenant to or usually enjoyed with that building or part of a building; ‘total floor area’ means the total floor area of a house measured in the manner referred to in section 4(2)(b) of the Housing (Miscellaneous Provisions) Act, 1979. (2) A lease shall not be a qualifying lease for the purposes of section 380B, 380C or 380D if— (a) the terms of the lease contain any provision enabling the lessee or any other person, directly or indirectly, at any time to acquire any interest in the house to which the lease relates for a consideration less than that which might be expected to be given at that time for the acquisition of the interest if the negotiations for that acquisition were conducted in the open market at arm's length, and (b) it does not comply with the requirements of the relevant guidelines. (3) A house shall not be a qualifying premises for the purposes of section 380B, 380C or 380D if— (a) it is occupied as a dwelling by any person connected with the person entitled, in relation to the expenditure incurred on the construction of, conversion into, or, as the case may be, refurbishment of, the house, to a deduction under section 380B(2), 380C(4) or 380D(2), as the case may be, and (b) the terms of the qualifying lease in relation to the house are not such as might have been expected to be included in the lease if the negotiations for the lease had been at arm's length. (4) (a) A house shall not be a qualifying premises for the purposes of section 380B unless it complies with such conditions, if any, as may be determined by the Minister for the Environment and Local Government from time to time for the purposes of section 4 of the Housing (Miscellaneous Provisions) Act, 1979, in relation to standards of construction of houses and the provision of water, sewerage and other services in houses. (b) A house shall not be a qualifying premises for the purposes of section 380C or 380D unless it complies with such conditions, if any, as may be determined by the Minister for the Environment and Local Government from time to time for the purposes of section 5 of the Housing (Miscellaneous Provisions) Act, 1979, in relation to standards for improvements of houses and the provision of water, sewerage and other services in houses. (5) A house shall not be a qualifying premises for the purposes of section 380B, 380C or 380D unless persons authorised in writing by the Minister for the Environment and Local Government for the purposes of those sections are permitted to inspect the house at all reasonable times on production, if so requested by a person affected, of their authorisations. (6) A house shall not be a qualifying premises for the purposes of section 380B, 380C or 380D unless throughout the relevant period (within the meaning of section 380B, 380C or 380D, as the case may be) it is used for letting to and occupation by students in accordance with the relevant guidelines. (7) For the purposes of sections 380B to 380D, references in those sections to the construction of, conversion into, or refurbishment of, any premises shall be construed as including references to the development of the land on which the premises is situated or which is used in the provision of gardens, grounds, access or amenities in relation to the premises and, without prejudice to the generality of the foregoing, as including in particular— (a) demolition or dismantling of any building on the land, (b) site clearance, earth moving, excavation, tunnelling and boring, laying of foundations, erection of scaffolding, site restoration, landscaping and the provision of roadways and other access works, (c) walls, power supply, drainage, sanitation and water supply, and (d) the construction of any outhouses or other buildings or structures for use by the occupants of the premises or for use in the provision of amenities for the occupants. (8) (a) For the purposes of determining, in relation to any claim under section 380B(2), 380C(4) or 380D(2), as the case may be, whether and to what extent expenditure incurred on the construction of, conversion into or refurbishment of, a qualifying premises is incurred or not incurred during the qualifying period, only such an amount of that expenditure as is properly attributable to work on the construction of, conversion into or refurbishment of, the premises actually carried out during the qualifying period shall be treated as having been incurred during that period. (b) Where by virtue of subsection (7) expenditure on the construction of, conversion into or refurbishment of, a qualifying premises includes expenditure on the development of any land, paragraph (a) shall apply with any necessary modifications as if the references in that paragraph to the construction of, conversion into or refurbishment of, the qualifying premises were references to the development of such land. (9) (a) For the purposes of sections 380B and 380C other than the purposes mentioned in subsection (8)(a), expenditure incurred on the construction of, or, as the case may be, conversion into, a qualifying premises shall be deemed to have been incurred on the date of the first letting of the premises under a qualifying lease. (b) For the purposes of section 380D other than the purposes mentioned in subsection (8)(a), relevant expenditure incurred in relation to the refurbishment of a qualifying premises shall be deemed to have been incurred on the date of the commencement of the relevant period, in relation to the premises, determined as respects the refurbishment to which the relevant expenditure relates. (10) For the purposes of sections 380B to 380D, expenditure shall not be regarded as incurred by a person in so far as it has been or is to be met, directly or indirectly, by the State, by any board established by statute or by any public or local authority. (11) Section 555 shall apply as if a deduction under section 380B(2), 380C(4) or 380D(2), as the case may be, were a capital allowance and as if any rent deemed to have been received by a person under section 380B(5), 380C(7) or 380D(5), as the case may be, were a balancing charge. (12) An appeal to the Appeal Commissioners shall lie on any question arising under this section or under section 380B, 380C or 380D (other than a question on which an appeal lies under section 18 of the Housing (Miscellaneous Provisions) Act, 1979) in the like manner as an appeal would lie against an assessment to income tax or corporation tax, and the provisions of the Tax Acts relating to appeals shall apply accordingly.
Provision against double relief.	380F.—Where relief is given by virtue of any provision of this Part in relation to expenditure incurred on any premises, relief shall not be given in respect of that expenditure under any other provision of the Tax Acts.”.

51 Amendment of section 843 (capital allowances for buildings used for third level educational purposes) of Principal Act.

51.—Section 843 of the Principal Act is hereby amended—

(a) in subsection (7), by the substitution of “31st day of December, 2002” for “1st day of July, 2000”, and

(b) by the insertion of the following subsection after subsection (7):

“(8) Notwithstanding the powers conferred and duties imposed—

(a) on the Minister for Education and Science and the Minister for Finance to approve or give consent to the approval of, respectively, certain capital expenditure by virtue of the definition of ‘qualifying expenditure’ in subsection (1), and

(b) on the Minister for Finance—

(i) to certify compliance with the requirements of subsection (4), or

(ii) not to give a certificate under that subsection at any time later than a particular day by virtue of subsection (7),

the Minister for Education and Science and the Minister for Finance may, either generally or in respect of capital expenditure to be incurred on any particular type of qualifying premises, and subject to such conditions, if any, which they may see fit to impose, agree to delegate and may so delegate, in writing, to An túdarás the authority to exercise the powers and carry out the duties referred to in paragraphs (a) and (b) and where these Ministers of the Government so delegate that authority—

(I) the definition of ‘qualifying expenditure’ in subsection (1) shall apply as if the reference in that definition to ‘, following receipt of the advice of An túdarás, is approved for that purpose by the Minister for Education and Science with the consent of the Minister for Finance’ were a reference to ‘is approved for that purpose by An túdarás’, and

(II) subsections (4) and (7) shall apply as if the references in those subsections to ‘the Minister for Finance’ were references to ‘An túdarás’.”.

52 Amendment of section 403 (restriction on use of capital allowances for certain leased assets) of Principal Act.

52.—(1) Section 403 of the Principal Act is hereby amended, in subsection (9) (as amended by the Finance Act, 1998)—

(a) in subparagraphs (i) and (ii) of paragraph (a), by the substitution of “lessee or lessor” for “lessee” in each place where it occurs, and

(b) in paragraph (b), by the substitution of the following for subparagraph (ii):

“(ii) where it is so provided on or after that day, be used by the lessee for the purposes only of a specified trade carried on in the State by the lessee and, except where the lessor provides the machinery or plant for leasing in the course of a specified trade carried on by the lessor, that it will not be used for the purposes of any other trade, or business or activity other than the lessor's trade.”.

(2) This section shall apply as on and from the 4th day of March, 1998.

53 Capital allowances for, and deduction in respect of, vehicles.

53.—Part 11 of the Principal Act is hereby amended—

(a) in subsection (2) of section 373—

(i) in paragraph (j), by the substitution of “mechanically propelled vehicle;” for “mechanically propelled vehicle.”, and

(ii) by the insertion of the following after paragraph (j):

“(k) £16,000, where the expenditure was incurred on or after the 2nd day of December, 1998, on the provision or hiring of a vehicle which, on or after that date was not a used or secondhand vehicle and was first registered in the State under section 131 of the Finance Act, 1992, without having been previously registered in any other state which duly provides for the registration of a mechanically propelled vehicle.”,

and

(b) in subsection (1) of section 376, in the definition of “relevant amount”—

(i) in paragraph (b), by the substitution of “£15,000,” for “£15,000, and”, and

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

“(c) in relation to qualifying expenditure incurred on or after the 3rd day of December, 1997, and before the 2nd day of December, 1998, £15,500, and

(d) in relation to qualifying expenditure incurred on or after the 2nd day of December, 1998, £16,000;”.

54 Amendment of section 666 (deduction for increase in stock values) of Principal Act.

54.—Section 666 of the Principal Act is hereby amended in subsection (4)—

(a) by the substitution in paragraph (a) of “2001” for “1999”, and

(b) by the substitution in paragraph (b) of “2000-01” for “1998-99”,

and the said paragraphs (a) and (b), as so amended, are set out in the Table to this section.

TABLE

(a) A deduction shall not be allowed under this section in computing a company's trading income for any accounting period which ends on or after the 6th day of April, 2001.

(b) Any deduction allowed by virtue of this section in computing the profits or gains of the trade of farming for an accounting period of a person other than a company shall not apply for any purpose of the Income Tax Acts for any year of assessment later than the year 2000-01.

55 Amendment of section 667 (special provisions for qualifying farmers) of Principal Act.

55.—Section 667 of the Principal Act is hereby amended in paragraph (b) of subsection (2) by the substitution for subparagraph (ii) (inserted by the Finance Act, 1998) of the following subparagraph:

“(ii) on or after the 6th day of April, 1995, and before the 6th day of April, 2001, for the year of assessment in which the individual becomes a qualifying farmer and for each of the 3 immediately succeeding years of assessment.”.

56 Amendment of Chapter 1 (general) of Part 20 (companies' chargeable gains) of Principal Act.

56.—(1) Part 20 of the Principal Act is hereby amended in Chapter 1—

(a) in section 616(1)—

(i) by the substitution for “of this Part” of “of this Chapter”, and

(ii) by the substitution for paragraphs (a) to (c) of the following paragraphs:

“(a) subject to section 621(1), a reference to a company or companies shall apply only to a company or companies, as limited by subsection (2), being a company or, as the case may be, companies—

(i) where the reference is in this section, which, by virtue of the law of a Member State of the European Communities, is or are resident for the purposes of tax in such a Member State, and for this purpose ‘tax’, in relation to a Member State of the European Communities other than the State, means any tax imposed in the Member State which corresponds to corporation tax in the State, and

(ii) where the reference is in the following sections of this Chapter, which is or are resident in the State,

and references to a member or members of a group of companies shall be construed accordingly;

(b) a company is an effective 75 per cent subsidiary of another company (in this paragraph referred to as ‘the parent’) at any time if at that time—

(i) the company is a 75 per cent subsidiary (within the meaning of section 9) of the parent,

(ii) the parent is beneficially entitled to not less than 75 per cent of any profits available for distribution to equity holders of the company, and

(iii) the parent would be beneficially entitled to not less than 75 per cent of the assets of the company available for distribution to its equity holders on a winding up,

and sections 413 to 419 shall apply for the purposes of this paragraph as they apply for the purposes of Chapter 5 of Part 12;

(bb) a principal company and all its effective 75 per cent subsidiaries shall form a group, and where a principal company is a member of a group as being itself an effective 75 per cent subsidiary that group shall comprise all its effective 75 per cent subsidiaries;

(b) in section 616—

(i) by the substitution in subsection (3) for “a 75 per cent subsidiary” (in both places where it occurs) of “an effective 75 per cent subsidiary”, and

(ii) by the substitution in subsection (4) for “75 per cent subsidiary” of “effective 75 per cent subsidiary”,

(d) by the insertion after section 623 of the following section:

“Transitional provisions in respect of section 623.

623A.—(1) In this section ‘the new definition’ means section 616 as amended by section 56 of the Finance Act, 1999, and ‘the old definition’ means that section as it had effect on the 10th day of February, 1999. (2) Where— (a) on the 11th day of February, 1999, a company ceases, for the purposes of section 616 and the provisions of this Part subsequent to that section, to be a member of a group by reason only of the substitution for the old definition of the new definition, and (b) in consequence of ceasing to be such a member the company would, apart from this section, be treated by virtue of section 623(4) as selling an asset at any time, the company shall not be treated as selling the asset at that time unless the conditions in subsection (3) become satisfied, assuming for that purpose that the old definition applies. (3) The conditions referred to in subsection (2) are— (a) that for the purposes of section 623, the company ceases at any time (in this subsection referred to as the ‘relevant time’) to be a member of the group referred to in subsection (2)(a), (b) that, at the relevant time, the company (or an associated company also ceasing to be a member of that group at that time) owns, otherwise than as trading stock, the asset, or property on the acquisition of which a chargeable gain in relation to the asset has been deferred on a replacement of business assets, and (c) that the time of acquisition of the asset referred to in section 623(2) fell within the period of 10 years ending with the relevant time.”,

(e) by the insertion after section 625 of the following section:

“Transitional provisions in respect of section 625.

625A.—(1) In this section— ‘the subsidiary’ and ‘the chargeable company’ have the same meanings, respectively, assigned to them by 625(1); ‘the new definition’ means section 616 as amended by section 56 of the Finance Act, 1999, and ‘the old definition’ means that section as it had effect on the 10th day of February, 1999. (2) Where— (a) on the 11th day of February, 1999, the subsidiary company ceases, for the purposes of section 616 and the provisions of this Part subsequent to that section, to be a member of a group by reason only of the substitution for the old definition of the new definition, and (b) in consequence of ceasing to be such a member the chargeable company would, apart from this section, be treated by virtue of section 625(2) as selling shares in the subsidiary at any time, the chargeable company shall not be treated as selling the shares at that time unless the conditions in subsection (3) become satisfied assuming for that purpose that the old definition applies. (3) The conditions referred to in subsection (2) are— (a) that for the purposes of section 625 the subsidiary ceases at any time (in this subsection referred to as ‘the relevant time’) to be a member of the group referred to in subsection (2)(a), and (b) that the time of the earlier occasion referred to in section 625(1)(a) fell within the period of 10 years ending with the relevant time.”,

and

(f) by the insertion after section 626 of the following section:

“Restriction on set-off of pre-entry losses.	626A.—For the purposes of Part 20, Schedule 18A (which makes provision in relation to losses accruing to a company before the time when it becomes a member of a group of companies and losses accruing on assets held by any company at such a time) shall apply.”.

(2) This section shall apply—

(a) as respects paragraph (a) of subsection (1), in so far as it relates to section 616(1)(a) of the Principal Act, as respects accounting periods ending on or after the 1st day of July, 1998, and

(b) in any other case as on and from the 11th day of February, 1999.

57 Restriction on set-off of pre-entry losses.

57.—(1) The Principal Act is hereby amended by the insertion after Schedule 18 of the following new Schedule:

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