372AP Relief for lessors.

(1) In this section—

“chargeable period” means an accounting period of a company or a year of assessment;

“relevant cost”, in relation to a house, means, subject to subsection (6), an amount equal to the aggregate of—

(a) (i) where the eligible expenditure is on the construction of the house, the expenditure incurred on the acquisition of, or of rights in or over, any land on which the house is situated, or

(ii) where the eligible expenditure is conversion expenditure or refurbishment expenditure, the expenditure incurred on the acquisition of, or of rights in or over—

(I) any land on which the house is situated, and

(II) any building in which the house is comprised,

and

(b) the expenditure actually incurred on the construction of, conversion into, or, as the case may be, refurbishment of the house;

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“relevant day” has the same meaning as it does in Chapter 4A of Part 12;

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“relevant period”, in relation to the incurring of eligible expenditure on or in relation to a qualifying premises or a special qualifying premises, means—

(a) where the eligible expenditure is incurred on the construction of, or in relation to the conversion of a building into, a qualifying premises, the period of 10 years beginning on the date of the first letting of the qualifying premises under a qualifying lease, and

(b) where—

(i) the eligible expenditure incurred is refurbishment expenditure in relation to a qualifying premises or a special qualifying premises, the period of 10 years beginning on the date of the completion of the refurbishment to which the refurbishment expenditure relates, or

(ii) where the qualifying premises or, as the case may be, the special qualifying premises was not let under a qualifying lease on the date referred to in subparagraph (i), the period of 10 years beginning on the date of the first such letting ^[3]>after the date of such completion;^{<[3][10]>[3]>}after the date of such completion,^{<[3]<[10][10]>}after the date of such completion;^<[10]

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but in relation to a premises which is not a qualifying premises or a special qualifying premises on a date that is 6 months after the relevant day solely by virtue of not being let on that day under a qualifying lease, the relevant period shall begin on that day and the provisions of this Chapter shall apply accordingly;

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“relevant price paid”, in relation to the purchase by a person of a house, means the amount which bears to the net price paid by such person on that purchase the same proportion as the amount of the eligible expenditure actually incurred on or in relation to the house, which is to be treated under section 372AS(1) as having been incurred in the qualifying period, bears to the relevant cost in relation to that house.

(2) ^[5]>Subject to subsections (3), (4) and (5),^{<[5][12]>[5]>}Subject to subsections (3), (4), (5), (8A), (8B) and (8C),^{<[5]<[12][12]>}Subject to subsections (3), (4) and (5),^<[12] where a person, having made a claim in that behalf, proves to have incurred eligible expenditure on or in relation to a house which is a qualifying premises or a special qualifying premises—

(a) such person is entitled, in computing for the purposes of section 97(1) the amount of a surplus or deficiency in respect of the rent from the qualifying premises or, as the case may be, the special qualifying premises, to a deduction of so much (if any) of that expenditure as is to be treated under section 372AS(1) or under this section as having been incurred by such person in the qualifying period, and

(b) Chapter 8 of Part 4 shall apply as if that deduction were a deduction authorised by section 97(2).

(3) (a) Where the eligible expenditure incurred is refurbishment expenditure in relation to a house which is a special qualifying premises—

(i) the deduction to be given under subsection (2)(a) shall be given—

(I) for the chargeable period in which the expenditure is incurred or, if the special qualifying premises was not let under a qualifying lease during that chargeable period, the chargeable period in which occurs the date of the first such letting after the expenditure is incurred, and

(II) for any subsequent chargeable period in which that premises continues to be a special qualifying premises,

and

(ii) the deduction for each such chargeable period shall be of an amount equal to 15 per cent of the expenditure to which subsection (2)(a) refers.

(b) For the purposes of paragraph (a)—

(i) the aggregate amount to be deducted by virtue of that paragraph shall not exceed 100 per cent of the expenditure to which subsection (2)(a) refers, and

(ii) where a chargeable period consists of a period less than one year in length, the amount of the deduction to be given for the chargeable period shall be proportionately reduced.

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(c) For the purposes of paragraph (a) and notwithstanding paragraph (b), no deduction shall be given under subsection (2)(a) for any chargeable period which begins after the chargeable period in which the relevant period ends.

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(4) (a) This subsection applies to any premium or other sum which—

(i) is payable, directly or indirectly, under a qualifying lease or otherwise under the terms subject to which the lease is granted, to or for the benefit of the lessor or to or for the benefit of any person connected with the lessor, and

(ii) where the eligible expenditure incurred is refurbishment expenditure in relation to a qualifying premises or a special qualifying premises—

(I) is payable on or subsequent to the date of completion of the refurbishment to which the refurbishment expenditure relates, or

(II) if payable before that date, is so payable by reason of or otherwise in connection with the carrying out of the refurbishment.

(b) Where any premium or other sum to which this subsection applies, or any part of such premium or such other sum, is not or is not treated as rent for the purposes of section 97, the eligible expenditure to be treated as having been incurred in the qualifying period on or in relation to the qualifying premises or the special qualifying premises to which the qualifying lease relates shall be deemed for the purposes of subsection (2) to be reduced by the lesser of—

(i) the amount of such premium or such other sum or, as the case may be, that part of such premium or such other sum, and

(ii) the amount which bears to the amount mentioned in subparagraph (i) the same proportion as the amount of the eligible expenditure actually incurred on or in relation to the qualifying premises or, as the case may be, the special qualifying premises and which is to be treated under section 372AS(1) as having been incurred in the qualifying period bears to the whole of the eligible expenditure incurred on or in relation to the qualifying premises or the special qualifying premises, as the case may be.

(5) (a) A person is entitled to a deduction by virtue of subsection (2) in respect of eligible expenditure incurred on a qualifying premises at a park and ride facility only in so far as that expenditure when aggregated with—

(i) other eligible expenditure, if any, incurred on other qualifying premises at the park and ride facility and in respect of which a deduction is to be made or would, but for this subsection, be made, and

(ii) other expenditure, if any, incurred at the park and ride facility, in respect of which there is provision for a deduction under section 372AR,

does not exceed 25 per cent of the total expenditure incurred at the park and ride facility in respect of which an allowance or deduction is to be made or would, but for this subsection or section 372W(2)(c) or 372AR(5), be made by virtue of any provision of this Chapter or Chapter 9.

(b) A person who has incurred eligible expenditure on a qualifying premises at a park and ride facility and who claims to have complied with the requirements of paragraph (a) in relation to that expenditure, shall be deemed not to have so complied unless the person has received from the relevant local authority a certificate in writing issued by that authority stating that it is satisfied that those requirements have been met.

(6) Where a qualifying premises or a special qualifying premises forms a part of a building or is one of a number of buildings in a single development, or forms a part of a building which is itself one of a number of buildings in a single development, there shall be made such apportionment as is necessary—

(a) of the eligible expenditure incurred on the construction, conversion or, as the case may be, refurbishment of that building or those buildings, and

(b) of the amount which would be the relevant cost in relation to that building or those buildings if the building or buildings, as the case may be, were a single qualifying premises,

for the purposes of determining the eligible expenditure incurred on or in relation to the qualifying premises or the special qualifying premises, as the case may be, and the relevant cost in relation to the qualifying premises or the special qualifying premises, as the case may be.

(7) Where a house is a qualifying premises or a special qualifying premises and at any time during the relevant period in relation to the premises either of the following events occurs—

(a) the house ceases to be a qualifying premises or a special qualifying premises, as the case may be, or

(b) the ownership of the lessor’s interest in the house passes to any other person but the house does not cease to be a qualifying premises or a special qualifying premises, as the case may be,

then, the person who before the occurrence of the event received or was entitled to receive a deduction or, as the case may be, deductions under subsection (2) in respect of eligible expenditure incurred on or in relation to that premises shall be deemed to have received on the day before the day of the occurrence of the event ^[14]>an amount as rent from that premises equal to the amount of that deduction or, as the case may be, the aggregate amount of those deductions.^<[14][14]>an amount as rent from that premises equal to the amount determined by the formula—^<[14]

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A – B

where—

A is the amount of the deduction or, as the case may be, the aggregate amount of the deductions under subsection (2) in respect of eligible expenditure incurred on or in relation to the premises, and

B is that part of the amount of any excess (within the meaning of section 384) that is attributable to the deduction or, as the case may be, the aggregate amount of the deductions under subsection (2) in respect of eligible expenditure incurred on or in relation to the premises and which has been carried forward under section 384 to the year of assessment in which either of the events, referred to in paragraphs (a) and (b), occurs.

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(7A) For the purposes of subsection (7), any transfer of property by a person to another person, pursuant to a Debt Settlement Arrangement or a Personal Insolvency Arrangement entered into under the Personal Insolvency Act 2012, whereby such property is held in trust for the creditors of the person making the transfer shall not, where that property is a house which is a qualifying premises or a special qualifying premises, be treated as the passing of the ownership of the lessor’s interest in that property to another person.

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(8) (a) Where the event mentioned in subsection (7)(b) occurs in the relevant period in relation to a house which is a qualifying premises or a special qualifying premises, the person to whom the ownership of the lessor’s interest in the house passes shall be treated for the purposes of this section as having incurred in the qualifying period an amount of eligible expenditure on or in relation to the house equal to the amount which under section 372AS(1) or under this section (apart from subsection (4)(b)) the lessor was treated as having incurred in the qualifying period on or in relation to the house.

(b) Where a person purchases a house to which paragraph (a) applies, the amount treated under that paragraph as having been incurred by such person shall not exceed the relevant price paid by such person on the purchase.

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(c) Notwithstanding any other provision of this section, paragraph (a) shall not apply where the event mentioned in subsection (7)(b) occurs on or after the relevant day.

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(8A) Where the relevant period in relation to any qualifying premises or any special qualifying premises ends in any chargeable period ending—

(a) before the relevant day, or

(b) at any other time,

then section 384 shall not apply to the amount of any excess (within the meaning of section 384(2)) in respect of eligible expenditure on that premises which is carried forward from that chargeable period—

(i) where paragraph (a) applies, to the chargeable period in which the relevant day occurs and each subsequent chargeable period, and

(ii) where paragraph (b) applies, to the next subsequent chargeable period and each subsequent chargeable period.

(8B) (a) Where, by virtue of subsection (2), any eligible expenditure to which this section applies falls to be taken into account for any chargeable period in computing, under section 97(1), a deficiency in respect of any rent from a qualifying premises or a special qualifying premises, then, notwithstanding subsection (2), only so much of that eligible expenditure as does not exceed the amount of that rent shall be so taken into account and paragraph (c)is to apply as respects each subsequent chargeable period to any excess of that eligible expenditure over the amount of that rent (referred to in this subsection as “excess expenditure”).

(b) Subject to paragraph (c), section 384 shall cease to apply to the amount of any excess (within the meaning of section 384(2)) in respect of eligible expenditure on any qualifying premises or any special qualifying premises which is carried forward from an earlier chargeable period to the chargeable period in which the relevant day occurs.

(c) For the purposes of paragraph (a), but subject to subsection (8A), the amount of any excess (within the meaning of section 384(2)) in respect of eligible expenditure on any qualifying premises or any special qualifying premises which is carried forward from an earlier chargeable period to the chargeable period in which the relevant day occurs, shall be treated as eligible expenditure to which this section applies and which falls to be taken into account for the chargeable period in which the relevant day occurs in computing, under section 97(1), a deficiency in respect of any rent from that qualifying premises or that special qualifying premises.

(d) Section 384 shall cease to apply for any chargeable period beginning on or after the relevant day to the amount of any excess (within the meaning of section 384(2)) in respect of eligible expenditure on any qualifying premises or any special qualifying premises to which this subsection applies.

(e) Where, as respects each chargeable period to which paragraph (a) applies, there is an amount of excess expenditure, that amount shall be treated, for the purposes of subsection (2) and paragraph (a) (including any further application of this subsection), as if it were eligible expenditure to which this section applies which, by virtue of subsection (2), falls to be taken into account for the next succeeding chargeable period in computing, under section 97(1), a surplus or deficiency in respect of any rent from the qualifying premises or the special qualifying premises.

(8C) For the purposes of subsections (8A) and (8B), section 485C(3)(ab) and paragraph 4 of Schedule 25C shall apply in determining the amount of any relief, to which this Chapter applies, to be carried forward from any chargeable period to the each subsequent chargeable period.

(8D) Notwithstanding any other provisions of this section, and as respects the chargeable period in which the relevant day occurs, any eligible expenditure in relation to a qualifying premises or a special qualifying premises shall not be taken into account in computing a deficiency in respect of any rent other than rent from that qualifying premises or special qualifying premises, where that rent arises in the period beginning on the relevant day and ending on the last day of the chargeable period.

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(9) Subject to subsection (10), where eligible expenditure is incurred on or in relation to a house and—

(a) where the eligible expenditure was expenditure on the construction of the house, before the house is used it is sold, or

(b) where the eligible expenditure was conversion expenditure or refurbishment expenditure, before the house is used subsequent to the incurring of that expenditure it is sold,

then, the person who purchases the house shall be treated for the purposes of this section as having incurred in the qualifying period eligible expenditure on or in relation to the house equal to the lesser of—

(i) the amount of such expenditure which is to be treated under section 372AS(1) as having been incurred in the qualifying period, and

(ii) the relevant price paid by such person on the purchase,

but, where the house is sold more than once before it is used, or, as the case may be, before the house is used subsequent to the incurring of the expenditure, this subsection shall apply only in relation to the last of those sales.

(10) Where eligible expenditure is incurred on or in relation to a house by a person carrying on a trade or part of a trade which consists, as to the whole or any part of that trade, of the construction, conversion or refurbishment of buildings with a view to their sale and the house is sold in the course of that trade or, as the case may be, that part of that trade—

(a) where the eligible expenditure was expenditure on the construction of the house—

(i) before the house is used, or

(ii) where a house, the site of which is wholly within a qualifying student accommodation area, is sold on or after 5 December 2001, within a period of one year after it commences to be used,

and

(b) where the eligible expenditure was conversion expenditure or refurbishment expenditure—

(i) before the house is used subsequent to the incurring of that expenditure, or

(ii) where a house, the site of which is wholly within a qualifying student accommodation area, is sold on or after 5 December 2001, within a period of one year after it commences to be used subsequent to the incurring of that expenditure,

then—

(I) the person (in this subsection referred to as the “purchaser”) who purchases the house shall be treated for the purposes of this section as having incurred in the qualifying period eligible expenditure on or in relation to the house equal to the relevant price paid by the purchaser on the purchase (in this subsection referred to as the “first purchase”), and

(II) in relation to any subsequent sale or sales of the house before the house is used, or, as the case may be, before the house is used subsequent to the incurring of the expenditure, subsection (9) shall apply as if the reference to the amount of eligible expenditure which is to be treated as having been incurred in the qualifying period were a reference to the relevant price paid on the first purchase.

(11) Expenditure in respect of which a person is entitled to relief under this section shall not include any expenditure in respect of which any person is entitled to a deduction, relief or allowance under any other provision of the Tax acts.

(12) For the purposes of this section, expenditure shall not be regarded as incurred by a person in so far as it has been or is to be met, directly or indirectly, by the State, by any board established by statute or by any public or local authority.

(13) Section 555 shall apply as if a deduction under this section were a capital allowance and as if any rent deemed to have been received by a person under this section were a balancing charge.

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(13A) Section 555 shall apply as if a deduction under this section were a capital allowance and, where subsection (7) applies, as if the amount represented by ‘A’ in the formula in that subsection were a balancing charge.

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(14) This section shall not apply in the case of any conversion or refurbishment unless planning permission, in so far as it is required, in respect of the conversion or, as the case may be, the work carried out in the course of the refurbishment has been granted under the Local Government (Planning and Development) acts, 1963 to 1999, or the Planning and Development act, 2000.

(15) Section 372AS shall apply for the purposes of supplementing this section.