Revenue Note for Guidance
372AX Accelerated capital allowances in relation to the construction or refurbishment of certain registered holiday camps
Summary
This section provides for accelerated capital allowances over 7 years in relation to certain registered holiday camps. The section sets out the type of such camps which may qualify and provides that the tax life and holding period of qualifying camps will be 15 years.
Details
Type of registered holiday camp which may qualify
(1) The type of registered holiday camp to which this section applies is a building or structure:
- the site of which is wholly within a qualifying mid-Shannon area,
- which is in use as a holiday camp registered under the Tourist Traffic Acts 1939 to 2003 and which meets the requirements of the relevant guidelines in relation to the types of amenities and facilities that need to be provided,
- in relation to which relevant data has been provided to the mid-Shannon Tourism Infrastructure Board for onward transmission to the Minister and the Minister for Finance in relation to:
- the amount of the capital expenditure actually incurred in the qualifying period on the construction or refurbishment of the building or structure, and in relation to an accommodation building, the amount of such expenditure which is eligible for certification (see subsection (4) of section 372AW),
- the number and nature of the investors that are investing in the building or structure,
- the amount to be invested by each investor, and
- the nature of the structures which are being put in place to facilitate the investment in the building or structure,
together with any other information specified in the relevant guidelines as being of assistance to the Minister for Finance in evaluating the costs and the benefits arising from the operation of tax relief for buildings and structures under this Chapter, and
- in respect of which the mid-Shannon Tourism Infrastructure Board gives a certificate in writing after the building or structure is first used or, where capital expenditure is incurred on the refurbishment of a building or structure, first used subsequent to the incurring of that expenditure—
- stating that it is satisfied that the conditions in paragraphs (a), (b) and (c) above have been met,
- confirming the date of first use or, as the case may be, first use after refurbishment, and
- which includes certification in accordance with section 372AW(2)(a)(ii) or a copy of such certification if it was already issued.
Rate of allowances, tax life and holding period
(2) A revised application of the provisions of Chapter 1 of Part 9 applies in relation to registered holiday camps which qualify under the section. This is subject to subsections (3) and (4) of the section and to section 372AZ.
Section 272 is to apply:
- (2)(a) as if a revised subsection (3)(c) were inserted – this provides that capital expenditure incurred in the qualifying period is to be written off at the rate of 15 per cent per annum,
- as if a revised subsection (4)(c) were inserted – this provides that the tax life of registered holiday camps which qualify under the section is to be 15 years from first use or first use after refurbishment.
(2)(b) Section 274(1)(b) is amended by inserting a revised subparagraph (iii) which provides that the holding period, of registered holiday camps which qualify under the section, for balancing allowance and balancing charge purposes is to be 15 years from first use or first use after refurbishment.
Minimum spend in refurbishment cases
(3) In the case of refurbishment, a minimum of 20 per cert of the market value of a building or structure must be expended in the qualifying period to qualify.
Expenditure attributable to work actually carried out
(4) Capital expenditure is to be treated as incurred in the qualifying period to the extent that it is attributable to work actually carried out in the qualifying period.
Relevant Date: Finance Act 2019