Revenue Note for Guidance
This Chapter contains the codified legislation in relation to reliefs for lessors and owner-occupiers, in respect of expenditure incurred on the provision of certain residential accommodation under the current Urban Renewal Scheme, the Living over the Shop Scheme, the Rural Renewal Scheme, the Park and Ride Scheme, the Town Renewal Scheme, the Student Accommodation Scheme and the general countrywide scheme for the Refurbishment of Rented Residential Accommodation.
The Chapter includes a provision which deals with continuity issues arising from the codification of the legislation which dealt with these residential reliefs under the various schemes listed above.
It also contains a saving provision in relation to the legislation (repealed by section 24(3) of the Finance Act 2002) which governed residential reliefs under the Customs House Docks Area Scheme, the Temple Bar Area Scheme, the 1994 scheme for Designated Areas and Designated Streets, the Qualifying Resort Areas Scheme, and the Designated Islands Scheme. This saving provision preserves title to the relief for existing beneficiaries and Revenue’s right to withdraw relief in appropriate circumstances.
NB: In relation to schemes where a termination date of 31 July 2008 applies, any expenditure incurred in the year 2007 and in the period 1 January 2008 to 31 July 2008 must be reduced to 75 per cent and 50 per cent respectively of the expenditure attributable to the period involved before calculating any allowances due to lessors and owner-occupiers (see section 372AS for details).
The various sections in Chapter 11 are as follows:
This section is the interpretation section for the Chapter. Most of the definitions which appear in the section replicate the definitions which appeared previously in sections, dealing with residential accommodation, which were repealed by section 24(3) Finance Act 2002. These are however a small number of new definitions and some alterations to previous definitions in relation to the terms used etc.
“certificate of compliance” and “certificate of reasonable cost” are to be construed, respectively, in accordance with section 372AM.
“conversion expenditure” is to be construed in accordance with section 372AN.
“eligible expenditure” is to be construed in accordance with section 372AN. This is a new term in relation to expenditure incurred on the construction, conversion or refurbishment of rented residential accommodation.
“existing building” has the same meaning as in section 372A. This term is relevant only in relation to the Living over the Shop scheme.
“facade”, in relation to a house, means the exterior wall of the house which fronts on to a street.
“guidelines”, in relation to a house within the site of a qualifying park and ride facility, has the same meaning as in section 372U.
“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.
“lease”, “lessee” and “lessor” are linked back to the definitions of those terms in Chapter 8 of Part 4 which deals with the taxation of rental income. Thus, “lease” includes an agreement for a lease and any tenancy but does not include a mortgage. “Lessee” and “lessor” are to be construed accordingly and include successors in title.
“Minister”, except where the context otherwise requires, means the Minister for the Environment and Local Government.
“necessary construction” has the same meaning as in section 372A. This term is relevant only in relation to the Living over the Shop scheme. Any reference in the Chapter (other than in section 372AR(1)(a)) to construction applies, in the case of a house which fronts on to a qualifying street or is comprised in a building or part of a building which fronts on to a qualifying street, as if it were a reference to necessary construction. This is provided that the context does not require otherwise.
“premium” has the same meaning as in Chapter 8 of Part 4 which deals with the taxation of rental income. Thus, “premium” includes any like sum whether payable to an immediate or superior lessor or to a person connected with the immediate or superior lessor.
“qualifying expenditure” is to be construed in accordance with section 372AQ. This is, as before, the term used in relation to expenditure incurred on owner-occupied accommodation. It now, however, includes a reference to conversion expenditure.
“qualifying lease” is to be construed in accordance with section 372AO.
“qualifying period” is to be construed in accordance with section 372AL.
“qualifying park and ride facility” has the same meaning as in section 372U(1).
“qualifying premises” is to be construed in accordance with section 372AM.
“qualifying rural area” means any area described in Schedule 8A.
“qualifying street” means a street specified as a qualifying street under section 372BA.
“qualifying town area” means an area or areas specified as a qualifying area under section 372AB.
“qualifying urban area” means an area or areas specified as a qualifying area under section 372B.
“refurbishment” in relation to:
“refurbishment expenditure” is to be construed in accordance with section 372AN. The term “relevant expenditure” was previously used to describe this.
“relevant cost” has the same meaning as in section 372AP. This definition now incorporates situations involving conversion and refurbishment expenditure.
“relevant guidelines”, in relation to a house or building in a qualifying student accommodation area, means guidelines entitled “Guidelines on Residential Developments for 3rd Level Students” issued by the Minister for Education and Science in consultation with the Minister and with the consent of the Minister for Finance, or such other guidelines amending or replacing those guidelines issued in accordance with section 372AM(1)(c).
“relevant local authority” in relation to —
“relevant period” has the meaning assigned to it in section 372AP.
“rent” has the same meaning as in Chapter 8 of Part 4.
“replacement building” has the same meaning as in section 372A. This term is relevant only in relation to the Living over the Shop scheme.
“special qualifying premises” is to construed in accordance with section 372AM and “special specified building” has the same meaning as in section 372AN(6). These are the terms which are now used in relation to the countrywide scheme for the refurbishment of rented residential accommodation.
“specified building” has the same meaning as in section 372AN(6).
“street” includes part of a street and the whole or part of any road, square, quay or lane.
“tax incentive area” means a qualifying urban area, a qualifying rural area, the site of a qualifying park and ride facility, a qualifying town area, or a qualifying student accommodation area.
“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.
Relevant Date: Finance Act 2019