Finance Act, 1998

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Capital allowances for private nursing homes.

22.—Part 9 of the Principal Act is hereby amended—

(a) in section 268 —

(i) in subsection (1)—

(I) in paragraph (e), by the substitution of “section 654,” for “section 654, or”, and

(II) by the insertion after paragraph (f) of the following paragraph:

“(g) for the purposes of a trade which consists of the operation or management of a nursing home within the meaning of section 2 of the Health (Nursing Homes) Act, 1990 , being a nursing home which is registered under section 4 of that Act, or”,

and

(ii) in subsection (9)—

(I) in paragraph (b), by the deletion of “and”,

(II) in paragraph (c), by the substitution of “1992,” for “1992.”, and

(III) by the insertion after paragraph (c) of the following paragraph:

“(d) by reference to paragraph (g), as respects capital expenditure incurred on or after the 3rd day of December, 1997, and”,

(b) in section 272—

(i) in subsection (3)—

(I) in paragraph (d), by the deletion of “and”,

(II) in paragraph (e), by the substitution of “subsection (2)(c),” for “subsection (2)(c).”, and

(III) by the insertion after paragraph (e) of the following paragraph:

“(f) in relation to a building or structure which is to be regarded as an industrial building or structure within the meaning of section 268(1)(g), 15 per cent of the expenditure referred to in subsection (2)(c), and”,

(ii) in subsection (4), by the insertion after paragraph (e) of the following paragraph:

“(f) in relation to a building or structure which is to be regarded as an industrial building or structure within the meaning of section 268(1)(g), 7 years beginning with the time when the building or structure was first used, and”,

and

(iii) by the addition of the following subsection after subsection (6):

“(7) For the purposes of this section, where a writing-down allowance has been made to a person for any chargeable period in respect of capital expenditure incurred on the construction of a building or structure within the meaning of paragraph (d) of section 268(1) and at the end of a chargeable period or its basis period the building or structure is not in use for the purposes specified in that paragraph, then, in relation to that expenditure—

(a) the building or structure shall not be treated as ceasing to be an industrial building or structure if, on the cessation of its use for the purposes specified in paragraph (d) of section 268(1), it is converted to use for the purposes specified in paragraph (g) of that section and at the end of the chargeable period or its basis period it is in use for those latter purposes, and

(b) as respects that chargeable period or its basis period and any subsequent chargeable period or basis period of it, the building or structure shall, notwithstanding the cessation of its use for the purposes specified in paragraph (d) of section 268(1), be treated as if it were in use for those purposes if at the end of the chargeable period or its basis period the building or structure is in use for the purposes specified in paragraph (g) of that section.”,

and

(c) in section 274(1)(b), by the substitution of the following for subparagraph (ii):

“(ii) in relation to a building or structure which is to be regarded as an industrial building or structure within the meaning of paragraph (c), (e) or (g) of section 268(1), 10 years after the building or structure was first used,”.