Revenue Note for Guidance

CHAPTER 4

Qualifying resort areas

Overview

This Chapter provided for a scheme of tax reliefs aimed at promoting the renewal and improvement of tourist amenities and facilities in certain seaside resorts. The resorts in question are Achill, Arklow, Ballybunion, Bettystown/Laytown/Mosney, Bundoran, Clogherhead, Clonakilty, Courtown, Enniscrone, Kilkee, Lahinch, Salthill, Tramore, Westport and Youghal. The precise qualifying areas are described in Schedule 8. The qualifying period for the scheme of reliefs is from 1 July, 1995 to 30 June, 1998. (This has been extended to 31 December, 1999 where certain conditions are met.)

Provision was made—

• in section 352, for a special capital allowances regime in respect of capital expenditure incurred on the construction or refurbishment of certain industrial buildings or structures, namely, hotels, holiday camps and holiday cottages registered with Bord Fáilte Éireann,
• in section 353, for a scheme of capital allowances in respect of capital expenditure incurred on the construction or refurbishment of buildings or structures which are used in the operation of certain tourism facilities,
• in section 354, for a double rent allowance in computing trading or professional income in respect of rent paid for the lease of buildings or structures, occupied for the purposes of the trade or profession, which have qualified for capital allowances under section 352 or 353,
• in section 356, for relief against rental income in respect of expenditure incurred on the construction of certain rented residential accommodation which is available for letting primarily to tourists, and
• in sections 357 and 358, respectively, for relief against rental income in respect of expenditure incurred on the conversion of certain buildings into rented residential accommodation which is available for letting primarily to tourists and on the refurbishment of such accommodation.
• in section 359, for measures which were supplementary to sections 356, 357, and 358.

The scheme is now terminated, in so far as the termination date for incurring qualifying expenditure or entering into qualifying leases has passed. However, claims in relation to qualifying expenditure incurred, or rent paid under qualifying leases entered into, before the termination date may continue to arise.

As part of the codification of legislation governing relief, under various tax incentive schemes, for expenditure incurred in relation to residential accommodation sections 356, 357, 358 and 359 were repealed by section 24(3) Finance Act 2002. However, a saving provision in relation to these sections, which preserves title to relief for existing beneficiaries and Revenue’s right to withdraw relief in appropriate circumstances, is contained in Chapter 11 of this Part in section 372AV.