S.I. No. 332/2006 - Finance Act 2006 (Commencement of Section 34(1)) Order 2006

I, Brian Cowen, Minister for Finance, in exercise of the powers conferred on me by section 34 (2) of the Finance Act 2006 (No. 6 of 2006), hereby order as follows:

1.     This Order may be cited as the Finance Act 2006 (Commencement of Section 34(1)) Order 2006.

2.     The 26 of June 2006 is appointed as the day on which section 34 of the Finance Act 2006 (No. 6 of 2006) comes into operation.

Explanatory Note

(This note is not part of the Instrument and does not purport to be a legal interpretation.)

This Order appoints 26 June, 2006 as the date for the coming into operation of section 34 (1 of the Finance Act 2006 (No. 6 of 2006). That section allows, subject to certain conditions for an extension of the qualifying period from 31 July 2006 to 31 July 2008 for the scheme of capital allowances for buildings used for third level educational purposes.

The section provides that expenditure incurred after 31 July 2006 and before 1 January 2007 can qualify for relief where the existing condition, whereby an application for a Ministerial Certificate must have been made by 31 December 2004 was met. Expenditure incurred from 1 January 2007 to 31 July 2008 can also qualify for relief where both the application condition was met and work to the value of at least 15 per cent of the actual construction or refurbishment costs is carried out by 31 December 2006.

By virtue of the provisions of section 26 of the Finance Act 2006 the amount of any capital expenditure attributable to the year 2007 and to the period 1 January 2008 to 31 July 2008 is subject to the respective reductions to 75 per cent and 50 per cent of the relevant amount for the period involved.