Finance Act 2004

• Permanent Page URL

Capital allowances for hotels, holiday camps and holiday cottages.

25.—(1) Part 9 of the Principal Act is amended—

(a) in section 268(13)(b)—

(i) by substituting “31 July 2006” for “31 December 2004”,

(ii) in subparagraph (i)(I), by inserting “, in so far as planning permission is required,” after “Development Act 2000)”,

(iii) in subparagraph (i)(II), by substituting “31 December 2004” for “31 May 2003”,

(iv) by deleting “or” between subparagraphs (i) and (ii),

(v) in subparagraph (ii)(I), by substituting “a planning application, in so far as planning permission was required,” for “a planning application”,

(vi) in subparagraph (ii)(III), by substituting “regulations,” for “regulations.”, and

(vii) by inserting the following after subparagraph (ii):

“or

(iii) where the construction or refurbishment work on the holiday cottage represented by that expenditure is exempted development for the purposes of the Planning and Development Act 2000 by virtue of section 4 of that Act or by virtue of Part 2 of the Planning and Development Regulations 2001 ( S.I. No. 600 of 2001 ) and—

(I) a detailed plan in relation to the development work is prepared,

(II) a binding contract in writing, under which the expenditure on the development is incurred, is in existence, and

(III) work to the value of 5 per cent of the development costs is carried out,

not later than 31 December 2004.”,

(b) in section 272(8)—

(i) by substituting “31 July 2006” for “31 December 2004”,

(ii) in paragraph (a)(i), by inserting “, in so far as planning permission is required,” after “Development Act 2000)”,

(iii) in paragraph (a) (ii), by substituting “31 December 2004” for “31 May 2003”,

(iv) in paragraph (b)(i), by substituting “a planning application, in so far as planning permission was required,” for “a planning application”,

(v) by inserting the following paragraph after paragraph (b):

“(ba) where the construction or refurbishment work on the building or structure represented by that expenditure is exempted development for the purposes of the Planning and Development Act 2000 by virtue of section 4 of that Act or by virtue of Part 2 of the Planning and Development Regulations 2001 ( S.I. No. 600 of 2001 ) and—

(i) a detailed plan in relation to the development work is prepared,

(ii) a binding contract in writing, under which the expenditure on the development is incurred, is in existence, and

(iii) work to the value of 5 per cent of the development costs is carried out,

not later than 31 December 2004.”,

and

(vi) in paragraph (c)(ii), by substituting “31 December 2004” for “31 May 2003”,

(c) in section 274(1A)—

(i) by substituting “31 July 2006” for “31 December 2004”,

(ii) in paragraph (a)(i), by inserting “, in so far as planning permission is required,” after “Development Act 2000)”,

(iii) in paragraph (a)(ii), by substituting “31 December 2004” for “31 May 2003”,

(iv) in paragraph (b)(i), by substituting “a planning application, in so far as planning permission was required,” for “a planning application”,

(v) by inserting the following paragraph after paragraph (b):

“(ba) where the construction or refurbishment work on the building or structure represented by that expenditure is exempted development for the purposes of the Planning and Development Act 2000 by virtue of section 4 of that Act or by virtue of Part 2 of the Planning and Development Regulations 2001 ( S.I. No. 600 of 2001 ) and—

(i) a detailed plan in relation to the development work is prepared,

(ii) a binding contract in writing, under which the expenditure on the development is incurred, is in existence, and

(iii) work to the value of 5 per cent of the development costs is carried out,

not later than 31 December 2004.”,

and

(vi) in paragraph (c)(ii), by substituting “31 December 2004” for “31 May 2003”,

and

(d) in section 316, by inserting the following subsection after subsection (2):

“(2A) For the purposes only of determining, in relation to a claim for an allowance under Chapter 1 of this Part, whether and to what extent capital expenditure incurred on the construction (within the meaning of section 270) of:

(a) a building or structure in use for the purposes of the trade of hotel keeping, or

(b) a building or structure deemed to be a building or structure in use for such purposes by virtue of section 268(3),

is incurred or not incurred on or before 31 July 2006, only such an amount of that capital expenditure as is properly attributable to work on the construction or refurbishment of the building or structure actually carried out on or before 31 July 2006 shall (notwithstanding subsection (2) and 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 on or before that date.”.

(2) Paragraphs (a)(ii) and (iv), (b)(ii) and (iii), and (c)(ii) and (iii) of subsection (1) are deemed to have applied as on and from 4 December 2002.