Revenue Tax Briefing

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Revenue Tax Briefing Issue 44, July 2001

Topical Questions - Industrial Buildings Allowance

Section 843 Taxes Consolidation Act 1997 applies the industrial buildings allowance provisions to expenditure incurred on the construction of certain buildings and on the provision of plant and machinery in use for the purpose of third level education. Subsection (5) of that section provides that a balancing charge will not be made in relation to the qualifying premises where certain events occur more than 7 years after the qualifying premises is first used.

Does this balancing charge provision also apply to the plant and machinery in such a premises?

Do the ring-fencing provisions of Section 404 TCA 1997 apply in respect of the leasing of such plant and machinery?

The expenditure on plant and machinery that comes within section 843 is treated as expenditure that qualifies for industrial buildings allowance.

A balancing charge will not apply to the plant and machinery by reason of any of the events specified in section 274 (1) which occurs more than 7 years after the plant and machinery is first used.

The ring-fencing provisions of section404 Taxes Consolidation Act 1997 do not apply to plant and machinery that qualifies as expenditure for the purposes of section 843 Taxes Consolidation Act 1997.