372AL Qualifying period

Summary

This section outlines the “qualifying period” which applies in relation to each residential scheme covered by Chapter 11 i.e. the residential elements of the Urban Renewal, Living over the Shop, Rural Renewal, Park and Ride and Town Renewal schemes as well as the Student Accommodation scheme and the general countrywide scheme for the Refurbishment of Rented Residential Accommodation.

Details

Qualifying periods – various schemes

(1) The qualifying periods for the various schemes are as follows:

Qualifying urban areas (Urban Renewal Scheme)

(1)(a) The qualifying period commenced on 1 August 1998 and ends on 31 December 2002 or, where subsection (2) applies it ends on 31 December 2006. Where subsections (2) and (3) apply it ends on 31 July 2008. These dates are subject to any dates, within these ranges, which may appear in orders made under section 372B.

Qualifying streets (Living Over the Shop Scheme):

(1)(b) The qualifying period commenced on 6 April 2001 and ends on 31 December 2004 or, where subsection (1A) applies, it ends on 31 December 2006. Where subsections (1A) and (3) apply it ends on 31 July 2008. These dates are subject to any dates, within this range, which may appear in orders made under section 372BA.

Qualifying rural areas (Rural Renewal Scheme):

(1)(c)(i) The qualifying period for the purposes of rented residential relief under section 372AP commenced on 1 June 1998 and ends on 31 December 2004 or, where subsection (1A) applies, it ends on 31 December 2006. Where subsections (1A) and (3) apply it ends on 31 July 2008.

(1)(c)(ii) In the case of owner-occupier relief under section 372AR the qualifying period commenced on 6 April 1999 and ends on 31 December 2004 or, where subsection (1A) applies, it ends on 31 December 2006. Again, where subsections (1A) and (3) apply it ends on 31 July 2008.

Site of a qualifying park and ride facility (Park and Ride Scheme):

(1)(d) The qualifying period commenced on 1 July 1999 and ends on 31 December 2004 or, where subsection (1A) applies, it ends on 31 December 2006. Where subsections (1A) and (3) apply it ends on 31 July 2008.

Qualifying town areas (Town Renewal Scheme)

(1)(e) The qualifying period commenced on 1 April 2000 and ends on 31 December 2004 or, where subsection (1A) applies, it ends on 31 December 2006. Where subsections (1A) and (3) apply it ends on 31 July 2008. These dates are subject to any dates, within this range, which may appear in orders made under section 372AB.

Qualifying student accommodation areas (Student Accommodation Scheme):

(1)(f) The qualifying period commenced on 1 April 1999 and ends on 31 March 2003 or, where subsection (1A) applies, it ends on 31 December 2006. Where subsections (1A) and (3) apply it ends on 31 July 2008.

Special specified building (Countrywide Refurbishment Scheme):

(1)(g) The qualifying period for this scheme, which is aimed at the refurbishment of buildings with one or more than one rented residential unit, commenced on 6 April 2001 and ends on 31 July 2008.

Extension of qualifying period to 31 December 2006 – schemes other than Urban Renewal

(1A) This subsection, which relates to the extension of the qualifying period to 31 December 2006 for residential reliefs under a number of incentives schemes (see subsection (1) above), applies as respects expenditure incurred on the construction, conversion or, as the case may be, refurbishment of a building or structure if a valid planning application (other than for outline permission), in so far as planning permission is required, in relation to the work represented by the expenditure, is received by the planning authority:

• by 31 December 2004, where the application is made in accordance with the Planning & Development Regulations 2001 to 2003, or
• by 10 March 2002, where the application was made in accordance with the Local Government (Planning and Development) Regulations 1994.

Where the work involved is exempted development for the purposes of the Planning and Development Act 2000 the 31 December 2006 expiry date will also apply provided the following conditions are met on or before 31 December 2004:

• a detailed plan in relation to the development work is prepared,
• a binding contract in writing exists under which the expenditure on the development is incurred, and
• work to the value of 5 per cent of the development costs is carried out.

Extension of qualifying period to 31 December 2006 – Urban Renewal scheme

(2)(a) The termination date of 31 December 2002 is extended to 31 December 2006, in relation to a qualifying urban area, where the relevant local authority (which includes an authorised company) gives a certificate in writing by 30 September 2003, to the person constructing, converting or refurbishing a building or part of a building within such an area. The certificate must state that the local authority is satisfied that not less than 15 per cent of the total cost of constructing, converting or refurbishing the building or the part of the building and of acquiring the site had been incurred by 30 June 2003. Application for the certificate must be received by the local authority on or before 31 July 2003.

(2)(b) In considering whether to give a certificate, the relevant local authority must have regard to guidelines issued by the Department of the Environment and Local Government.

Extension of qualifying period to 31 July 2008 – schemes other that rental refurbishment scheme

The termination date for the various schemes (other that the general rental refurbishment scheme) is extended to 31 July 2008 where the conditions of this provision are met. This date applies without condition for the general rental refurbishment scheme.

(3) The extended date will apply provided that work to the value of not less that 15 per cent of the actual construction, conversion or refurbishment costs of a building or part of a building is carried out by 31 December 2006 by the person who is constructing, converting or refurbishing. The provision also provides that such person must be able to show that the condition has been satisfied. Alternatively, where the building is sold, the person who is claiming the relief under section 372AP (lessor) or section 372AR (owner-occupier) must be able to show that the condition was satisfied.

Restrictions on expenditure incurred in 2007 and 2008 – all schemes

Section 372AS provides that that only 75 per cent of eligible expenditure (lessors) or qualifying expenditure (owner-occupiers) incurred in the year 2007 and 50 per cent of such expenditure incurred in the period 1 January 2008 to 31 July 2008 is to be taken into account in granting allowances under sections 372AP and 372AR. These restrictions apply to “qualifying premises” under all schemes and “special qualifying premises” under the general Rental Refurbishment scheme (see notes on section 372AS).

Relevant Date: Finance Act 2019