Revenue Note for Guidance

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Revenue Note for Guidance

372AZ Restrictions on relief, non-application of relief in certain cases and provision against double relief

Summary

This section contains restrictions in relation to circumstances in which relief may be claimed. It also provides that reduced levels of qualifying expenditure will apply in certain cases.

Details

Restrictions on the availability of capital allowances

(1) Relief under sections 372AX and 372AY will not apply in relation to construction or refurbishment expenditure on a building or structure:

  1. (1)(a) where a property developer or a person connected with a property developer is entitled to the relevant interest in relation to the construction or refurbishment expenditure and such expenditure was incurred by either of those persons or by some other person connected with the property developer,
  2. (1)(b) where any part of the construction or refurbishment expenditure is met directly or indirectly by the State or any State bodies [e.g. this provision would rule out relief where any part of the expenditure is met directly or indirectly by a grant or BES funding],
  3. (1)(c) unless the potential capital allowances in relation to the building or structure concerned and the project in which it is comprised comply with the requirements of:
    • the Guidelines on National Regional Aid for 2007-2013, and
    • the National Regional Aid Map for Ireland for the same period.
  4. (1)(d) where a person is subject to an outstanding recovery order following a previous decision of the Commission of the European Communities declaring aid in favour of that person to be illegal and incompatible with the common market.

Provision against double relief

(2) Relief will not be given in respect of capital expenditure incurred on the construction or refurbishment of a building or structure under any other provision of the Taxes Acts where relief is given by virtue of section 372AX or 372AY.

Reduced levels of qualifying expenditure

(3) The amount of relief which may be given in relation to capital expenditure incurred on the construction or refurbishment of an accommodation building is restricted to the amount of such expenditure which was eligible for certification by the mid-Shannon Tourism Infrastructure Board. This provision is to apply prior to any restriction which may arise by virtue of subsection (4).

(4) The amount of relief which may be given in relation to capital expenditure incurred on the construction or refurbishment of a building or structure which is located in a qualifying mid-Shannon area described in Part 1 (Clare) or Part 5 (Tipperary) of Schedule 8B (as inserted by section 29(1)(b) of the Finance Act 2007) is restricted to 80 per cent of the amount which otherwise would qualify for relief e.g. after the application of subsection (3).

(5)(a) The provisions of the Tax Acts (other than section 279) are to apply as if references to capital expenditure incurred were references to such expenditure reduced in accordance with subsections (3) and/or (4).

(5)(b) The provisions of section 279 are reapplied to take account of any reductions which may be made to capital expenditure incurred in accordance with subsections (3) and/or (4).

Commencement of Chapter 12 of Part 10

Chapter 12 of Part 10 took effect on the commencement of section 29 of the Finance Act 2007. That section was commenced with effect from 1 June 2008 by way of order of the Minister for Finance (see S.I. No. 159 of 2008).

Relevant Date: Finance Act 2019