Finance Act, 1995

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Accelerated capital allowances in relation to construction or refurbishment of certain industrial buildings or structures.

47.—(1) This section shall apply to a building or structure the site of which is wholly within a qualifying resort area and which is to be an industrial building or structure by reason of its use for the purposes specified in section 255 (1) (d) of the Income Tax Act, 1967 .

(2) Subject to subsection (5), section 254 of the Income Tax Act, 1967 , shall have effect in relation to capital expenditure which is incurred in the qualifying period on the construction or refurbishment of a building or structure to which this section applies—

(a) as if, in subsection (1) of the said section 254, the reference to “one-tenth” were a reference to “one-half”, and

(b) as if both subsection (2) and subsection (2B) (inserted by section 74 of the Finance Act, 1990 ) of the said section 254 were deleted.

(3) Subject to subsection (5), section 264 of the Income Tax Act, 1967 , shall have effect in relation to capital expenditure which is incurred in the qualifying period on the construction or refurbishment of a building or structure to which this section applies—

(a) as if, in subsection (1) (apart from the proviso thereto) of the said section 264, the reference to “one-fiftieth” were a reference to “one-twentieth”, and

(b) as if the proviso to the said subsection (1) were deleted.

(4) Subject to subsection (5), section 25 of the Finance Act, 1978 , shall have effect in relation to capital expenditure which is incurred in the qualifying period on the construction or refurbishment of a building or structure to which this section applies—

(a) as if, in paragraph (b) of subsection (2) (inserted by section 48 of the Finance Act, 1988 ) of the said section 25—

(i) the reference in subparagraph (i) to “before the 1st day of April, 1989,75 per cent., or” were a reference to “before the 1st day of July, 1998, 75 per cent.,”, and

(ii) subparagraphs (ii) and (iii) (inserted by section 76 of the Finance Act, 1990 ) were deleted,

and

(b) as if subsection (2A) (inserted by the said section 76) of the said section 25 were deleted.

(5) In the case where capital expenditure is incurred in the qualifying period on the refurbishment of a building or structure to which this section applies, subsections (2), (3) and (4) shall apply only if the total amount of the capital expenditure so incurred is not less than an amount which is equal to 20 per cent, of the market value of the building or structure immediately before the said expenditure is incurred.

(6) For the purposes only of determining, in relation to a claim for an allowance under section 254 or 264 of the Income Tax Act, 1967 , or section 25 of the Finance Act, 1978 , as applied by this section, whether and to what extent capital expenditure incurred on the construction or refurbishment of an industrial building or structure 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, as the case may be, the refurbishment of the building or structure which was 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.