First Previous (PART III Provisions Relating to Dublin Docklands Development Authority)

27 1998

URBAN RENEWAL ACT, 1998

PART IV

Miscellaneous

Grants to local authorities and other bodies.

17. —The Minister may, with the consent of the Minister for Finance, out of moneys provided by the Oireachtas, make grants to a local authority or any other body concerned with the promotion of the conservation of buildings or structures, for the purpose of defraying, in whole or in part, the expenditure incurred by it in—

(a) the promotion of urban and village renewal, including physical, economic and social renewal, or

(b) the conservation of buildings or structures of artistic, architectural or historical interest.

Amendment of sections 370 and 372E of Taxes Consolidation Act, 1997.

18. —The Taxes Consolidation Act, 1997 , is hereby amended—

(a) in section 370(1) by the substitution of the following for the definition of “qualifying premises”:

“‘qualifying premises’ means, subject to subsection (5)(a), a building or structure the site of which is wholly within a qualifying area and—

(a) (i) which is a building or structure in use for a purpose specified in section 268(1)(a), and in respect of which capital expenditure is incurred in the qualifying period for which an allowance—

(I) is to be made, or

(II) will by virtue of section 279 be made, or, if an order under section 367(1)(a) were to be made directing that the area is to be a qualifying area for the purposes of section 368, would be made,

for the purposes of income tax or corporation tax, as the case may be, under section 271 or 273, as applied by section 368,

(ii) in respect of which an allowance—

(I) is to be made, or

(II) will by virtue of section 279 be made, or, if an order under section 367(1)(a) were to be made directing that the area is to be a qualifying area for the purposes of section 369, would be made,

for the purposes of income tax or corporation tax, as the case may be, under Chapter 1 of Part 9 by virtue of section 369, or

(iii) which is a building or structure in use for the purposes specified in section 268(1)(d), and in respect of the construction or refurbishment of which capital expenditure is incurred in the qualifying period for which an allowance would but for subsection (6) be made for the purposes of income tax or corporation tax, as the case may be, under Chapter 1 of Part 9,

and

(b) which is let on bona fide commercial terms for such consideration as might be expected to be paid in a letting of the building or structure negotiated on an arm's length basis, but, where capital expenditure is incurred in the qualifying period on the refurbishment of a building or structure in respect of which an allowance—

(i) is to be made, or

(ii) will by virtue of section 279 be made, or

(iii) if an order under section 367(1) (a) were to be made directing that the area is to be a qualifying area for the purposes of section 368 or 369, as the case may be, would be made, or

(iv) would but for subsection (6) be made,

for the purposes of income tax or corporation tax, as the case may be, under any of the provisions referred to in paragraph (a), the building or structure shall not be regarded as a qualifying premises unless the total amount of the expenditure so incurred is not less than an amount equal to 10 per cent of the market value of the building or structure immediately before that expenditure is incurred.”,

and

(b) in section 372E(1) (inserted by section 76 of the Finance Act, 1998 ) by the substitution of the following for the definition of “qualifying premises”:

“‘qualifying premises’ means, subject to subsection (5)(a), a building or structure—

(a) (i) the site of which is wholly within a qualifying area and which is a building or structure in use for a purpose specified in section 268(1)(a), and in respect of which capital expenditure is incurred in the qualifying period for which an allowance—

(I) is to be made, or

(II) will by virtue of section 279 be made, or, if an order under section 372B(1)(a) were to be made directing that the area is to be a qualifying area for the purposes of section 372C, would be made,

for the purposes of income tax or corporation tax, as the case may be, under section 271 or 273, as applied by section 372C,

(ii) the site of which is wholly within a qualifying area and in respect of which an allowance—

(I) is to be made, or

(II) will by virtue of section 279 be made, or, if an order under section 372B(1)(a) were to be made directing that the area is to be a qualifying area for the purposes of section 372D, would be made,

for the purposes of income tax or corporation tax, as the case may be, under Chapter 1 of Part 9 by virtue of section 372D,

or

(iii) the site of which is wholly within a qualifying area and which is a building or structure in use for the purposes specified in section 268(1) (d), and in respect of the construction or refurbishment of which capital expenditure is incurred in the qualifying period for which an allowance would but for subsection (6) be made for the purposes of income tax or corporation tax, as the case may be, under Chapter 1 of Part 9,

and

(b) which is let on bona fide commercial terms for such consideration as might be expected to be paid in a letting of the building or structure negotiated on an arm's length basis,

but, where capital expenditure is incurred in the qualifying period on the refurbishment of a building or structure in respect of which an allowance—

(i) is to be made, or

(ii) will by virtue of section 279 be made, or

(iii) if an order under section 372B(1)(a) were to be made directing that the area is to be a qualifying area for the purposes of section 372C or 372D, as the case may be, would be made, or

(iv) would but for subsection (6) be made,

for the purposes of income tax or corporation tax, as the case may be, under any of the provisions referred to in paragraph (a), the building or structure shall not be regarded as a qualifying premises unless the total amount of the expenditure so incurred is not less than an amount equal to 10 per cent of the market value of the building or structure immediately before that expenditure is incurred.”.

Amendment of Chapters 7 and 8 of Part 10 of Taxes Consolidation Act, 1997.

19. —Chapters 7 and 8 (inserted by the Finance Act, 1998 ) of Part 10 of the Taxes Consolidation Act, 1997 , are hereby amended—

(a) in section 372B (1), by the substitution of the following paragraph for paragraph (b):

“(b) where such an area or areas is or are to be a qualifying area for the purposes of section 372D—

(i) one or more of the categories of building or structure mentioned in subsection (2) shall or shall not be a qualifying premises within the meaning of that section and

(ii) subsection (6) of that section shall not apply in relation to that qualifying area, and”,

(b) in section 372D—

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

(ii) by the insertion in subsection (6)(a) after “Notwithstanding subsections (2) to (4)” of “but subject to section 372B(1)(b)”, and

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

“(6A) Where an order made under section 372B(1) directs that subsection (6) shall not apply in relation to a qualifying area, subsection (4) shall apply in relation to that qualifying area as if—

(a) the reference in paragraph (a)(iv) of that subsection to 50 per cent were a reference to 25 per cent, and

(b) the following subparagraphs were substituted for subparagraph (ii) of paragraph (b) of that subsection:

‘(ii) the following paragraph were substituted for paragraph (b) of subsection (2) of that section:

“(b) As respects any qualifying expenditure, any allowance made under section 272 and increased under paragraph (a) in respect of that expenditure, whether claimed for one chargeable period or more than one such period, shall not in the aggregate exceed 50 per cent of the amount of that qualifying expenditure.”,

and

(iii) subsections (3) to (7) of that section were deleted.’”,

(c) in section 372N—

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

(ii) by the insertion of the following subsections after subsection (6):

“(6A) Subsection (6) shall apply in relation to capital expenditure incurred in the qualifying period on the construction or refurbishment of a qualifying premises only where the qualifying premises is at any time in that period the subject of a qualifying lease (within the meaning of section 372O) granted to a person who occupies the qualifying premises for the purposes of a qualifying trade or profession (within the meaning of that section).

(6B) Where subsection (6) does not apply in relation to capital expenditure incurred in the qualifying period, subsection (4) shall apply as if—

(a) the reference in paragraph (a)(iv) of that subsection to 50 per cent were a reference to 25 per cent,

and

(b) the following subparagraphs were substituted for subparagraph (ii) of paragraph (b) of that subsection:

‘(ii) the following paragraph were substituted for paragraph (b) of subsection (2) of that section:

“(b) As respects any qualifying expenditure, any allowance made under section 272 and increased under paragraph (a) in respect of that expenditure, whether claimed for one chargeable period or more than one such period, shall not in the aggregate exceed 50 per cent of the amount of that qualifying expenditure.”,

and

(iii) subsections (3) to (7) of that section were deleted.’”,

and

(d) in section 372O—

(i) by the substitution in subsection (3) for “trade or profession” (where that expression first occurs) of “qualifying trade or profession (being a trade or profession specified by regulations made by the Minister for Finance to be a qualifying trade or profession for the purposes of this section)”, and

(ii) by the insertion of the following subsection after subsection (5):

“(6) Every regulation made under this section shall be laid before Dáil Éireann as soon as may be after it is made and, if a resolution annulling the regulation is passed by Dáil Éireann within the next 21 days on which Dáil Éireann has sat after the regulation is laid before it, the regulation shall be annulled accordingly, but without prejudice to the validity of anything previously done thereunder.”.

Amendment of provisions relating to Custom House Docks Area.

20. —(1) The Taxes Consolidation Act, 1997 , is hereby amended—

(a) in section 322—

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

“‘the specified period’ means the period commencing on the 25th day of January, 1988, and ending on—

(a) the 24th day of January, 1999, for the purposes of section 324,

(b) the 31st day of December, 1999, for the purposes of sections 325 to 328, and

(c) the 31st day of December, 1999, for the purposes of section 323; but where, in relation to the construction of a qualifying premises within the meaning of that section, at least 51 per cent of the total capital expenditure which is incurred on the construction of the premises is incurred before the 1st day of January, 2000, the reference in this paragraph to the 31st day of December, 1999, shall be construed as a reference to the 30th day of June, 2000.”, and

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

“(b) as respects any such area so described, the definition of ‘the specified period’ shall be construed as a reference to such period as shall be specified in the order in relation to that area; but no such period specified in the order shall commence before the 26th day of January, 1994, or end after—

(i) the 24th day of January, 1999, for the purposes of section 324,

(ii) the 31st day of December, 1999, for the purposes of sections 325 to 328, and

(iii) the 31st day of December, 1999, for the purposes of section 323; but where, in relation to the construction of a qualifying premises within the meaning of that section, at least 51 per cent of the total capital expenditure which is incurred on the construction of the premises is incurred before the 1st day of January, 2000, the reference in this subparagraph to the 31st day of December, 1999, shall be construed as a reference to the 30th day of June, 2000,”,

(b) in section 323, by the deletion of subsection (3)(b), and

(c) in section 409A (inserted by section 30 of the Finance Act, 1998 ) by the substitution, in subsection (5)(b), of the following for the words from “the 1st day of May, 1998,” to the end of that subsection:

“(I) the 1st day of May, 1998, except in the case of a specified building to which clause (II) applies, or

(II) the 1st day of August, 1998, in the case of a specified building in respect of which an allowance is to be made, or will by virtue of section 279 be made, for the purposes of income tax under Chapter 1 of Part 9 by virtue of Chapter 1 of Part 10,

pursuant to negotiations which were in progress before the 3rd day of December, 1997.”.

(2) Section 25 of the Finance Act, 1998 , is hereby repealed.