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Amendment of Chapter 7 (qualifying areas) of Part 10 of Principal Act.
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44.—(1) Chapter 7 of Part 10 of the Principal Act is amended—
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(a) in section 372A(1)—
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(i) by the insertion before the definition of “qualifying area” of the following:
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“ ‘property developer’ means a person carrying on a trade which consists wholly or mainly of the construction or refurbishment of buildings or structures with a view to their sale;”, and
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(ii) in the definition of “qualifying period”, by the substitution of “31 December 2002;” for “the 31st day of July, 2001;”,
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(b) in section 372B(1)—
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(i) by the substitution of the following for paragraph (b):
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“(b) where such an area or areas is or are to be a qualifying area for the purposes of section 372D, one or more of the categories of building or structure mentioned in subsection (2) shall or shall not be a qualifying premises within the meaning of that section,”, and
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(ii) in paragraph (c), by the substitution of the following for the words from “or end after—” to the end of the paragraph:
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“or end after 31 December 2002.”,
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(c) in section 372C—
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(i) by the substitution of the following for subsection (1):
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“(1) In this section ‘building or structure to which this section applies’ means a building or structure or part of a building or structure the site of which is wholly within a qualifying area and which is to be an industrial building or structure by reason of its use for a purpose specified in section 268(1)(a).”, and
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(ii) in subsection (2)(d), by the substitution of “50 per cent” for “25 per cent”,
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(d) in section 372D—
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(i) in subsection (1), by the insertion after “means a building or structure” of “or part of a building or structure”,
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(ii) in subsection (2)(a), by the substitution of “subsections (3) to (5)” for “subsections (3) to (6A)”,
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(iii) in subsection (4)(b)—
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(I) in subparagraph (i) by the deletion of “and”, and
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(II) by the substitution of the following subparagraphs for subparagraph (ii):
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“(ii) the following paragraph were substituted for paragraph (b) of subsection (2) of that section:
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‘(b) As respects any qualifying expenditure, any allowance made under section 272 and increased under paragraph (a) in respect of that expenditure, whether claimed for one chargeable period or more than one such period, shall not in the aggregate exceed 50 per cent of the amount of that qualifying expenditure.’,
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and
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(iii) subsections (3) to (7) of that section were deleted.”,
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and
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(iv) by the deletion of subsections (6) and (6A),
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(e) in section 372G(1), in paragraph (a) and paragraph (b) of the definition of “conversion expenditure” by the insertion of “or part of a building” after “a building”,
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(f) in section 372H(1), in the definition of “specified building” by the insertion of “or part of a building” after “a building”,
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(g) in section 372I(2), by the insertion of the following paragraph after paragraph (a):
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“(aa) Notwithstanding paragraph (a), where the individual, or, being a husband or wife, the individual's spouse, is assessed to tax in accordance with section 1017, the individual shall, except where section 1023 applies, be entitled to have the deduction, to which he or she is entitled under paragraph (a), made from his or her total income and the total income of his or her spouse, if any.”,
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and
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(h) by the substitution of the following section for section 372K:
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“Non-application of relief in certain cases and provision against double relief.
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372K.—(1) Notwithstanding any other provision of this Chapter, sections 372C and 372D shall not apply—
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(a) in respect of expenditure incurred on the construction or refurbishment of a building or structure or a qualifying premises—
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(i) where a property developer is entitled to the relevant interest, within the meaning of section 269, in relation to that expenditure, and
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(ii) either the person referred to in subparagraph (i) or a person connected (within the meaning of section 10) with that person incurred the expenditure on the construction or refurbishment of the building, structure or premises concerned,
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(b) in respect of expenditure incurred on the construction or refurbishment of a building or structure or a qualifying premises where such building or structure or premises is in use for the purposes of a trade, or any activity treated as a trade, carried on by the person who is entitled to the relevant interest, within the meaning of section 269, in relation to that expenditure and such trade or activity is carried on wholly or mainly—
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(i)in the sector of agriculture, including the production, processing and marketing of agricultural products,
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(ii) in the coal industry, fishing industry or motor vehicle industry, or
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(iii) in the transport, steel, ship-building, synthetic fibres or financial services sectors,
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or
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(c) in relation to any building or structure or qualifying premises which is provided for the purposes of a project, the regional aid for which is limited under the ‘Multisectoral framework on regional aid for large investment projects'1
prepared by the Commission of the European Communities.
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(2) For the purposes of sections 372C, 372D, 372G and 372H, where the site of any part of a building or structure is situate outside the boundary of a qualifying area and where expenditure incurred or treated as having been incurred in the qualifying period is attributable to the building or structure in general, such an amount of that expenditure shall be deemed to be attributable to the part which is situate outside the boundary of the qualifying area as bears to the whole of that expenditure the same proportion as the floor area of the part situate outside the boundary of the qualifying area bears to the total floor area of the building or structure.
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(3) Where relief is given by virtue of any provision of this Chapter in relation to capital expenditure or other expenditure incurred on, or rent payable in respect of, any building, structure or premises, relief shall not be given in respect of that expenditure or that rent under any other provision of the Tax Acts.”.
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(2) This section shall apply as on and from 1 July 1999.
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11O.J. No. C 107, 7.4. 1998, p.7 |
