Taxes Consolidation Act, 1997 (Number 39 of 1997)
310 Allowances in respect of certain contributions to capital expenditure of local authorities.
[FA78 s26]
(1) In this section—
“approved scheme” means a scheme undertaken by a local authority with the approval of the Minister for the Environment and Local Government which has as its object or among its objects the treatment of trade effluents;
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“local authority”, means the council of a county or the corporation of a county or other borough or the council of an urban district;
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“local authority” means a local authority for the purposes of the Local Government Act 2001 (as amended by the Local Government Reform Act 2014);
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“trade effluents” means liquid or other matter discharged into public sewers from premises occupied for the purposes of a trade.
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(2) Where a person, for the purposes of a trade carried on or to be carried on by the person, contributes a capital sum to expenditure by a local authority on the provision of an asset to be used for the purposes of an approved scheme, in so far as the scheme relates to the treatment of trade effluents, then, such allowances, if any, shall be made to the person under section 271, 272, 283 or 284 as would have been made to the person if the contribution had been expenditure on the provision for the purposes of that trade of a similar asset and that asset had continued at all material times to be in use for the purposes of the trade.
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(2) Where a person, for the purposes of a trade carried on or to be carried on by the person, contributes a capital sum to capital expenditure incurred by a local authority on or after 15 February 2001 on the provision of an asset to be used for the purposes of—
(a) an approved scheme, in so far as the scheme relates to the treatment of trade effluents, or
(b) the supply of water under an agreement in writing between the person and the local authority,
then, such allowances, if any, shall be made to the person under section 272 or 284 as would have been made to the person if the capital sum contributed in the chargeable period or its basis period had been expenditure on the provision for the purposes of that trade of a similar asset and that asset had continued at all material times to be in use for the purposes of the trade.
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(2A)Where, by virtue of subsection (2), a person is entitled to an allowance under section 284, then, for the purposes of determining the amount of wear and tear allowances to be made for any chargeable period or its basis period for the purposes of this section, section 284 shall apply as if the reference in paragraph (aa) (inserted by the Finance Act, 2001) of subsection (2) of that section to “20 per cent of the actual cost of the machinery or plant, including in that actual cost any expenditure in the nature of capital expenditure on the machinery or plant by means of renewal, improvement or reinstatement” were a reference to “20 per cent of the capital sum contributed in the chargeable period or its basis period”.
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(2A) Where, by virtue of subsection (2), a person is entitled to an allowance under section 284 then, for the purposes of determining the amount of wear and tear allowances to be made for any chargeable period or its basis period for the purposes of this section, section 284 shall apply—
(a) as if the reference in paragraph (aa) of subsection (2) of that section to “20 per cent of the actual cost of the machinery or plant, including in that actual cost any expenditure in the nature of capital expenditure on the machinery or plant by means of renewal, improvement or reinstatement” were a reference to “20 per cent of the capital sum contributed in the chargeable period or its basis period”, and
(b) as if the reference in paragraph (ad) of subsection (2) of that section to “12.5 per cent of the actual cost of the machinery or plant, including in that actual cost any expenditure in the nature of capital expenditure on the machinery or plant by means of renewal, improvement or reinstatement” were a reference to “12.5 per cent of the capital sum contributed in the chargeable period or its basis period”.
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(3) The following provisions shall apply in relation to a transfer of a trade or part of a trade for the purposes of which a contribution referred to in subsection (2) was made:
(a) where the transfer is of the whole trade, allowances which, if the transfer had not taken place, would have been made to the transferor under section 272 or 284 for chargeable periods ending after the date of the transfer shall be made to the transferee and shall not be made to the transferor;
(b) where the transfer is of part only of the trade, paragraph (a) shall apply in relation to so much of the allowance as is properly referable to the part of the trade transferred.
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Inserted by FA01 s50(1)(c). This section shall come into operation on such day as the Minister for Finance may by order appoint.