Revenue Tax Briefing Issue 41, September 2000
The Commencement order for section 48 of the Finance Act 2000 was signed by the Minister for Finance on 14 August 2000 following EU approval and took effect from 20 July 2000. The section extends the film relief regime in section 481 TCA 1997 for a further 5 year period, to 5 April 2005. It also increases by 10% the maximum amount of the cost of production of a film which can be met by tax relieved funding.
The EU Commission had also required that certain amendments be made to the film relief scheme. These amendments were also included in section 48:
As indicated in Tax Briefing, Issue 39 [March 2000] accelerated capital allowances at the rate of 100% were, subject to clearance by the EU Commission, provided for in Finance Bill 2000 in respect of expenditure on certain childcare facilities. The allowances consist of an initial allowance of 100% which is available to owner-occupiers and investors and free depreciation up to 100% which is available to owner-occupiers only. The allowances apply in respect of expenditure incurred on and from 1 December 1999 on the construction, extension or refurbishment of childcare facilities which meet the required standards for such facilities, as provided in the Child Care Act 1991 and the Child Care (Pre-School Services) Regulations, 1996. Expenditure incurred on the conversion of a building to a qualifying childcare facility is also eligible for relief.
EU approval of the accelerated allowances has now been received and a commencement order, which brings the section formally into operation from 21 June 2000, has now been signed by the Minister for Finance. Even though the section came into operation from 21 June 2000 relief will apply in respect of all claims made after that date in respect of expenditure incurred on and from 1 December 1999.