Finance Act, 2001

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Amendment of section 97 (computational rules and allowable deductions) of Principal Act.

34.—Section 97 (as amended by the Finance (No. 2) Act, 1998 ) of the Principal Act is amended—

(a) in subsection (2B)—

(i) by the substitution in paragraph (d) for “1997, or” of “1997,”,

(ii) by the substitution in paragraph (e) for “during the year.” of “during the year, or”, and

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

“(f) in the purchase, improvement or repair of a premises which complies with the conditions of subsection (2F).”,

and

(b) by the insertion of the following after subsection (2E):

“(2F) (a) The conditions of this subsection are—

(i) the premises was converted into multiple residential units prior to 1 October 1964,

(ii) the premises was acquired by the chargeable person under a contract which was evidenced in writing on or after 5 January 2001,

(iii) subsequent to the acquisition by the chargeable person of the premises, the number of residential units is not, subject to subparagraph (iv), reduced to less than 50 per cent of the total number of residential units contained in the premises at date of acquisition,

(iv) the premises consists throughout the year of a minimum of 3 residential units,

(v) at all times during the year (except for reasonable periods of temporary disuse between the ending of one lease and the commencement of another lease) not less than 50 per cent of the residential units in the premises are let under a lease where the lesses in the case of each such letting is either—

(I) a local authority, or a person nominated by a local authority under an agreement in writing between the lessor and that local authority, or

(II) a person who, at the commencement of the tenancy, is entitled to a payment under section 179 of the Social Welfare (Consolidation) Act, 1993 , in respect of rent,

and

(vi) all the requirements of the following Regulations—

(I) the Housing (Standards for Rented Houses) Regulations, 1993 ( S.I. No. 147 of 1993 ),

(II) the Housing (Rent Books) Regulations, 1993 ( S.I. No. 146 of 1993 ), and

(III) the Housing (Registration of Rented Houses) Regulations, 1996 ( S.I. No. 30 of 1996 ), as amended by the Housing (Registration of Rented Houses) (Amendment) Regulations, 2000 ( S.I. No. 12 of 2000 ),

are complied with in relation to the premises throughout the year,

and

(b) in this subsection—

‘local authority’, in relation to a premises, means the council of a country or the corporation of a country or other borough or, where appropriate, the council of an urban district in whose functional area the premises is located; ‘residential unit’ means a separately contained part of a residential premises used or suitable for use as a dwelling.”.