372W Capital allowances in relation to construction or refurbishment of certain commercial premises.

(1) In this section “qualifying premises” means a building or structure the site of which is wholly within the site of a qualifying park and ride facility and—

(a) in respect of which the relevant local authority gives to the person constructing or refurbishing the premises a certificate in writing stating that it is satisfied that the premises and the activity to be carried on in the premises complies with the requirements laid down in the guidelines in relation to the development of commercial activity at a qualifying park and ride facility, ^[2]>and^<[2]

(b) which apart from this section is not an industrial building or structure within the meaning of section 268(1), and

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(c) (i) is in use for the purposes of a trade or profession, or

(ii) whether or not it is so used, is let on bona fide commercial terms for such consideration as might be expected to be paid in a letting of the building or structure negotiated on an arm’s length basis,

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(c) (i) is in use for the purposes of the retailing of goods or the provision of services only within the State but excluding any building or structure in use—

(I) as offices, or

(II) for the provision of mail order or financial services,

or

(ii) is let on bona fide commercial terms for such use as is referred to in subparagraph (i) and for such consideration as might be expected to be paid in a letting of the building or structure negotiated on an arm’s length basis,

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but does not include any part of a building or structure in use as or as part of a dwelling house.

(2) (a) ^[10]>Subject to paragraphs (b) and (c) and^{<[10] [4]>}subsections (3) to (5)^{<[4][10]>[4]>}subsections (3) to (5A)^{<[4]<[10][10]>}Subject to paragraphs (b) and (c), subsections (3) to (5A) and (as inserted by the Finance Act 2006) sections 270(4), 270(5), 270(6) and 316(2B)^<[10], the provisions of the Tax Acts relating to the making of allowances or charges in respect of capital expenditure incurred on the construction or refurbishment of an industrial building or structure shall, notwithstanding anything to the contrary in those provisions, apply—

(i) as if a qualifying premises were, at all times at which it is a qualifying premises, a building or structure in respect of which an allowance is to be made for the purposes of income tax or corporation tax, as the case may be, under Chapter 1 of Part 9 by reason of its use for a purpose specified in section 268(1)(a), and

(ii) where any activity carried on in the qualifying premises is not a trade, as if it were a trade.

(b) An allowance shall be given by virtue of this subsection in respect of any capital expenditure incurred on the construction or refurbishment of a qualifying premises only in so far as that expenditure is incurred in the qualifying period.

(c) (i) An allowance shall be given by virtue of this subsection in respect of any capital expenditure incurred on the construction or refurbishment of a qualifying premises at a park and ride facility only in so far as that expenditure when aggregated with—

(I) other capital expenditure, if any, incurred on the construction or refurbishment of other qualifying premises and in respect of which an allowance would or would but for this paragraph be given, and

(II) other expenditure, if any, in respect of which there is provision for a deduction to be made by virtue of ^[8]>section 372X or 372Y^<[8][8]>section 372AP or 372AR^<[8],

incurred at that park and ride facility, does not exceed one-half of the total capital expenditure incurred at that park and ride facility in respect of which an allowance or deduction is to be made or would, but for this paragraph or ^[8]>section 372X(4) or 372Y(2)(c)^<[8][8]>372AP(5) or 372AR(5)^<[8], be made by virtue of any provision of ^[9]>this Chapter^<[9][9]>this Chapter or Chapter 11^<[9].

(ii) A person who has incurred capital expenditure on the construction or refurbishment of a qualifying premises at a park and ride facility and who claims to have complied with the requirements of subparagraph (i) 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 it stating that it is satisfied that those requirements have been met.

(3) In the case where capital expenditure is incurred in the qualifying period on the refurbishment of a qualifying premises, subsection (2) shall apply only if the total amount of the capital expenditure so incurred is not less than an amount equal to 10 per cent of the market value of the qualifying premises immediately before that expenditure was incurred.

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(3A) This section shall not apply in respect of expenditure incurred on the construction or refurbishment of a qualifying premises—

(a) where a property developer is entitled to the relevant interest, within the meaning of section 269, in relation to that expenditure, and

(b) either the person referred to in paragraph (a) or a person connected (within the meaning of section 10) with that person incurred the expenditure on the construction or refurbishment of the qualifying premises concerned.

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(4) For the purposes of the application, by subsection (2), of sections 271 and 273 in relation to capital expenditure incurred in the qualifying period on the construction or refurbishment of a qualifying premises—

(a) section 271 shall apply—

(i) as if in subsection (1) of that section the definition of “industrial development agency” were deleted,

(ii) as if in subsection (2)(a)(i) of that section “to which subsection (3) applies” were deleted,

(iii) as if subsection (3) of that section were deleted,

(iv) as if the following subsection were substituted for subsection (4) of that section:

“(4) An industrial building allowance shall be of an amount equal to 50 per cent of the capital expenditure mentioned in subsection (2).”,

and

(v) as if in subsection (5) of that section “to which subsection (3)(c) applies” were deleted,

and

(b) section 273 shall apply—

(i) as if in subsection (1) of that section the definition of “industrial development agency” were deleted, and

(ii) as if subsections (2)(b) and (3) to (7) of that section were deleted.

(5) Notwithstanding section 274(1), no balancing charge shall be made in relation to a qualifying premises by reason of any of the events specified in that section which occur—

(a) more than 13 years after the qualifying premises was first used ^[5]>or, where subsection (5A) applies, first used as a qualifying premises^<[5], or

(b) in a case where section 276 applies, more than 13 years after the capital expenditure on refurbishment of the qualifying premises was incurred.

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(5A) Notwithstanding subsections (2)(a), (4)(a) and (5), where it is shown in respect of a building or structure which is to be a qualifying premises that the relevant local authority is unable to give the certificate in writing referred to in subsection (1)(a) relating to compliance with certain requirements at a park and ride facility which would be a qualifying park and ride facility but for the delay referred to in section 372V(4A), then, in relation to capital expenditure incurred in the qualifying period on the construction or refurbishment of the building or structure—

(a) section 271 shall apply—

(i) as if in the definition of “appropriate chargeable period” in subsection (1) of that section “the chargeable period in which the building or structure becomes an industrial building or structure” were substituted for “the chargeable period related to the expenditure”, and

(ii) as if in subsection (6) of that section “if, within 5 years of the building or structure coming to be used, it is not an industrial building or structure” were substituted for “if the building or structure, when it comes to be used, is not an industrial building or structure”,

(b) section 272 shall apply as if in subsection (4)(a)(ii) of that section “beginning with the time when the building or structure was first used as an industrial building or structure” were substituted for “beginning with the time when the building or structure was first used”,

(c) section 274 shall apply—

(i) as if in subsection (1)(b)(i)(II) of that section “after the building or structure was first used as an industrial building or structure” were substituted for “after the building or structure was first used”, and

(ii) as if in subsection (5)(a) of that section “when the building or structure was first used as an industrial building or structure” were substituted for “when the building or structure was first used for any purpose”,

(d) section 277 shall apply—

(i) as if in subsection (2) of that section “when the building or structure is first used as an industrial building or structure” were substituted for “when the building or structure is first used”, and

(ii) as if in subsection (4)(a) of that section “when the building or structure was first used as an industrial building or structure” were substituted for “when the building or structure was first used for any purpose”,

(e) section 278 shall apply as if in subsection (2) of that section “before the building or structure is first used as an industrial building or structure” were substituted for “before the building or structure is first used for any purpose”, and

(f) section 279 shall apply as if in subsections (2) and (3) of that section “before the building or structure is used as an industrial building or structure or within the period of one year after it commences to be so used” were substituted for “before the building or structure is used or within the period of one year after it commences to be used” (in each place where it occurs in those subsections).

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(6) For the purposes only of determining, in relation to a claim for an allowance by virtue of subsection (2), whether and to what extent capital expenditure incurred on the construction or refurbishment of a qualifying premises is incurred or not incurred in the qualifying period, only such an amount of that capital expenditure as is properly attributable to work on the construction or refurbishment of the premises actually carried out during the qualifying period shall (notwithstanding any other provision of the Tax Acts as to the time when any capital expenditure is or is to be treated as incurred) be treated as having been incurred in that period.

(7) Where an allowance is given under this section in respect of capital expenditure incurred on the construction or refurbishment of a qualifying premises, no allowance shall be given in respect of that expenditure by virtue of any other provision of the Tax Acts.