Revenue Note for Guidance

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Revenue Note for Guidance

CHAPTER 9

Park and ride facilities and certain related developments

Overview

This Chapter provides for a scheme of tax reliefs aimed at encouraging the establishment of park and ride facilities mainly in larger urban areas. The areas in question are the cities of Dublin, Cork, Galway, Limerick and Waterford as well as county council areas contiguous to those cities, namely, the county council areas of Clare, Cork, Dún Laoghaire-Rathdown, Fingal, Galway, Kildare, Kilkenny, Limerick, Meath, South Dublin, Waterford and Wicklow. Urban district council areas in Kildare, Meath and Wicklow are also included.

Accelerated capital allowances up to 100 per cent are provided in respect of qualifying expenditure incurred on the construction or refurbishment of park and ride facilities which comply with Department of the Environment and Local Government guidelines on such facilities. Relief is also made available in respect of qualifying expenditure incurred on the construction or refurbishment of certain commercial premises as is relief for expenditure incurred on the construction of certain residential accommodation located at park and ride facilities. The latter is available under Chapter 11 of this Part. However, these reliefs are subject to certain conditions and limits.

Firstly, commercial and residential development at a park and ride facility must conform to the requirements of guidelines issued by the Minister for the Environment and Local Government. Secondly, allowances are available in respect of expenditure incurred on commercial and residential developments, if any, provided that the total expenditure incurred on those developments does not exceed 50 per cent of total allowable expenditure at a park and ride facility. Thirdly, allowances are available in the case of expenditure incurred on residential accommodation at a park and ride facility up to a limit of 25 per cent of total allowable expenditure at the facility.

The qualifying period for the scheme commenced on 1 July 1999 and originally was due to end on 31 December 2004. In certain circumstances this period may be extended to 31 December 2006 or to 31 July 2008.

Where the extended termination date of 31 July 2008 applies, the amount of capital 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 amount attributable to the period involved (see notes on sections 270(4) to (6) and 316).

Where the public transport element of a park and ride facility is delayed, and certification by a local authority in accordance with the guidelines of the Minister for the Environment and Local Government is not possible, provision is made so as to apply provisions of the law governing capital allowances in such a way as to suspend the availability of capital allowances until the public transport element of the park and ride facility is in place and the development can be certified. This will ensure that there will be no loss of entitlement to the allowances.

Tax incentives, in the form of capital allowances for park and ride facilities and commercial premises located at park and ride facilities are not available under Chapter 9 to property developers in certain circumstances. Additionally, capital allowances for such commercial premises are restricted to premises used essentially for the retailing of goods and the provision of services within the State.

Provision was made—

  • in section 372V, for a special capital allowances regime in respect of capital expenditure incurred on the construction or refurbishment of certain park and ride facilities,
  • in section 372W, for a similar regime of allowances, subject to an overall limit, in respect of capital expenditure incurred on the construction or refurbishment of certain commercial premises at a park and ride facility,
  • in section 372X, for relief against rental income, subject to an overall limit, in respect of expenditure incurred on the construction of certain rented residential accommodation at a park and ride facility, and
  • in section 372Y, for relief to owner-occupiers, subject to an overall limit, in respect of expenditure incurred on the construction of certain residential accommodation at a park and ride facility.
  • in section 372Z, for measures which were supplementary to sections 372X and 372Y.

As part of the codification of legislation governing relief under various tax incentive schemes, for expenditure incurred in relation to residential accommodation, sections 372X, 372Y and 372Z were repealed by section 24(3) Finance Act 2002.

The provisions of these sections and of the legislation governing relief in relation to residential accommodation under a number of other schemes, where the qualifying period had not expired, were consolidated by Finance Act 2002 and are now contained in Chapter 11 of this Part.

372U Interpretation (Chapter 9)

Summary

This section is the interpretation section for the Chapter. It contains definitions of terms used throughout the Chapter and sets out the qualifying period for the scheme. It also sets out the matters to be covered by guidelines issued by the Minister for the Environment and Local Government. Certification of compliance with these guidelines is the responsibility of the local authorities involved. The definition of “the relevant local authority” lists the local authorities in question.

Definitions

(1) “guidelines” are defined as guidelines in relation to —

  • the location, development and operation of park and ride facilities, and
  • the development of commercial and residential accommodation at those facilities.

The guidelines are issued by the Minister for the Environment and Local Government following consultation with the Minister for Public Enterprise and with the consent of the Minister for Finance. The issues to be covered by the guidelines are outlined in subsection (2).

“park and ride facility” is defined as a building or structure, served by a bus or train service, providing car parking for vehicles for the public generally on payment of a charge. This effectively means certain car parks whether multi-storey or surface car parks. The definition also covers any area provided under, over or adjoining the car park to be used for commercial or residential development.

“property developer” means a person wholly or mainly involved in the trade of constructing or refurbishing buildings for sale.

“qualifying park and ride facility” is one which has been certified by the relevant local authority as complying with the guidelines.

“qualifying period”, in relation to the business tax incentives provided in this Chapter, means the period commencing on 1 July 1999 and ending on 31 December 2004 or, where subsection (1A) applies, 31 December 2006. This date is, subject to a commencement order, extended to 31 July 2008 by section 32 Finance Act 2006 where subsections (1A) and (3) apply.

The “qualifying period” in relation to the construction of rented residential accommodation is contained in section 372AL in Chapter 11 of this Part.

“the relevant local authority” is defined to mean Cork, Dublin, Galway, Limerick and Waterford Corporations. It also covers the county council areas of Clare, Cork, Dún Laoghaire-Rathdown, Fingal, Galway, Kildare, Kilkenny, Limerick, Meath, South Dublin, Waterford and Wicklow as well as urban district councils in counties Kildare, Meath and Wicklow. In regard to the definition of “local authority”, it should be noted that, by virtue of section 3(2) of, and Schedule 2 to, the Local Government Act 2001, references in any other enactment to “county borough corporation”, “council of a county” and “council of an urban district”, and to similar or analogous expressions, are now to be construed as references to “City council”, “County council” and “Town council of a town mentioned in Chapter 2 of Part 1 of Schedule 6 to the Local Government Act 2001”, respectively.

Extension of qualifying period to 31 December 2006

(1A) This subsection, which relates to the extension of the qualifying period to 31 December 2006 for park and ride facilities and commercial premises, applies as respects expenditure on the construction or 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 expiry date of 31 December 2006 may 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% of the development costs is carried out.

Extension of qualifying period to 31 July 2008

(3)(a) and (b) This subsection, which relates to the possible extension of the qualifying period to 31 July 2008 for park and ride facilities and commercial premises, applies as respects expenditure on the construction or refurbishment of a building or structure if the relevant conditions of subsection (1A) were met and work to the value of at least 15 per cent of the actual construction or refurbishment costs (excluding site costs) of the building or structure is carried out by 31 December 2006. The person who carried out the work or, where that person sells the building or structure involved, the person who is claiming the capital allowances must be able to show that this 15% condition was satisfied.

Matters for the guidelines

(2) These may include provisions in relation to —

  • the criteria for determining suitable park and ride sites,
  • conditions to apply in relation to the provision of transport services to and from a park and ride facility, including provision for a formal agreement between a transport operator and a park and ride facility operator in certain circumstances,
  • hours of operation and the level and structure of charges to be levied on users of a park and ride facility,
  • the minimum number of parking spaces and the proportion, if any, of those spaces allocated to any commercial or residential development at a park and ride facility,
  • the requirements to apply to ensure that commercial or residential development does not adversely affect the development of a park and ride facility.

Relevant Date: Finance Act 2019