372T Non-application of relief in certain cases and provision against double relief

Summary

This section provides, in line with EU requirements, that capital allowances under this scheme in relation to industrial buildings or structures and commercial premises are not available:

• to property developers in certain circumstances,
• where any part of the construction or refurbishment expenditure is met by grant assistance or any other assistance from the State or any of its agencies,
• unless prior approval of such capital allowances are received from the European Commission where a project is subject to the notification requirements of either the “Multisectoral framework on regional aid for large investment projects” dated 7 April 1998 or the revised Multisectoral Framework dated 19 March 2002, whichever is appropriate, or
• to owner-operators of buildings or structures or premises in use in certain sectors and industries (This restriction does not apply to lessors.)

The section also confines these “business” reliefs (i.e. capital allowances for industrial and commercial premises) to firms employing less than 250 people.

Finally, the section prevents claims for relief being made under any other provision of the Tax Acts where relief is given under this Chapter.

Details

Restrictions on the availability of capital allowances

(1) Capital allowances under sections 372M and 372N in relation to industrial buildings or structures and commercial premises will not apply:

• (1)(a) to a property developer, where the expenditure on the construction or refurbishment of a building or structure or premises is incurred by the property developer or by a person connected with the property developer.
• (1)(aa) where the expenditure on the construction or refurbishment of a building or structure or premises is met directly or indirectly by way of grant assistance or any other assistance from the State, any board established by statute, any public or local authority or any other agency of the State.
• (1)(ab) as respects construction or refurbishment expenditure incurred on or after 1 January 2003, where a project is subject to the notification requirements of the “Multisectoral framework on regional aid for large investment projects”, prepared by the European Commission and dated either 7 April 1988 or 19 March 2002, unless prior approval of the potential capital allowances involved has been received from the EU Commission. [The rules of each framework will decide as to which is applicable in any case. The new framework is due to become effective from 1 January 2004.] Approval must be received from the Commission by the Minister for Finance, or by such other Minister of the Government, agency or body as may be nominated for that purpose by the Minister for Finance.
• (1)(b) in respect of expenditure incurred on the construction or refurbishment of a building or structure or premises by an owner-operator whose trade is carried on wholly or mainly in the agricultural sector, the coal, fishing or motor vehicle industries, or the transport, steel, shipbuilding, synthetic fibres or financial services sectors. This restriction does not apply to lessors.
• (1)(c) in relation to a building or structure or premises which is in use for the purposes of a trade (or an activity treated as a trade) if the number of individuals employed or engaged in carrying on the trade or activity is 250 or more.

Provision against double relief

(2) This provision prevents claims for relief being made, in relation to capital or other expenditure or rent paid, under any other provision of the Tax Acts where relief is given under this Chapter.

Relevant Date: Finance Act 2019