372Y Residential accommodation: allowance to owner-occupiers in respect of certain expenditure on construction.

(1) In this section—

“qualifying expenditure”, in relation to an individual, means an amount equal to the amount of the expenditure incurred by the individual on the construction of a qualifying premises which is a qualifying owner-occupied dwelling in relation to the individual after deducting from that amount of expenditure any sum in respect of or by reference to—

(a) that expenditure,

(b) the qualifying premises, or

(c) the construction work in respect of which that expenditure was incurred,

which the individual has received or is entitled to receive, directly or indirectly, from the State, any board established by statute or any public or local authority;

“qualifying owner-occupied dwelling”, in relation to an individual, means a qualifying premises which is first used, after the qualifying expenditure has been incurred, by the individual as his or her only or main residence;

“qualifying premises”, in relation to the incurring of qualifying expenditure, means, subject to subsections (4) and (5) of section 372Z, a house—

(a) the site of which is wholly within the site of a qualifying park and ride facility,

(b) in respect of which the relevant local authority gives to the person constructing the house a certificate in writing stating that it is satisfied that the house or, in a case where the house is one of a number of houses in a single development, the development of which it is part complies with the requirements laid down in the guidelines in relation to the development of certain residential accommodation at a park and ride facility,

(c) which is used solely as a dwelling,

(d) in respect of which, if it is not a new house (for the purposes of section 4 of the Housing (Miscellaneous Provisions) Act, 1979) provided for sale, there is in force a certificate of reasonable cost the amount specified in which in respect of the cost of construction of the house is not less than the expenditure actually incurred on such construction, and

(e) the total floor area of which is not less than 38 square metres and not more than 125 square metres.

(2) (a) Subject to paragraphs (b) and (c), where an individual, having made a claim in that behalf, proves to have incurred qualifying expenditure in a year of assessment, the individual shall be entitled, for that year of assessment and for any of the 9 subsequent years of assessment in which the qualifying premises in respect of which the individual incurred the qualifying expenditure is the only or main residence of the individual, to have a deduction made from his or her total income of an amount equal to 5 per cent of the amount of that expenditure.

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(aa) Notwithstanding paragraph (a), where the individual, or, being a husband or wife, the individual’s spouse, is assessed to tax in accordance with section 1017, the individual shall, except where section 1023 applies, be entitled to have the deduction, to which he or she is entitled under paragraph (a), made from his or her total income and the total income of his or her spouse, if any.

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(b) A deduction shall be given under this section in respect of qualifying expenditure only in so far as that expenditure is to be treated under section 372Z(7) as having been incurred in the qualifying period.

(c) (i) A person shall be entitled to a deduction by virtue of this subsection in respect of qualifying expenditure incurred at a park and ride facility only in so far as that expenditure when aggregated with—

(I) other qualifying expenditure, if any, in respect of which a deduction would or would but for this paragraph be made, and

(II) other expenditure, if any, in respect of which there is provision for a deduction under section 372X,

incurred at that park and ride facility, does not exceed one-quarter 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 section 372W(2) (c) or section 372X(4), be made by virtue of any provision of this Chapter.

(ii) A person who has incurred qualifying expenditure 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.

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(2A) Where the year of assessment first mentioned in subsection (2)(a) or any of the 9 subsequent years of assessment is the year of assessment 2001, that subsection shall apply—

(a) as if for “any of the 9 subsequent years of assessment” there were substituted “any of the 10 subsequent years of assessment”,

(b) as respects the year of assessment 2001, as if “3.7 per cent” were substituted for “5 per cent”, and

(c) as respects the year of assessment which is the 10th year of assessment subsequent to the year of assessment first mentioned in that subsection, as if “1.3 per cent” were substituted for “5 per cent”.

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(3) Where qualifying expenditure in relation to a qualifying premises is incurred by 2 or more persons, then each of those persons shall be treated as having incurred the expenditure in the proportions in which they actually bore the expenditure, and the expenditure shall be apportioned accordingly.

(4) section 372Z shall apply for the purposes of supplementing this section.