Finance Act, 1981

Amendment of section 254 (industrial building allowance) of Income Tax Act, 1967.

27.Section 254 (1) (inserted by the Corporation Tax Act, 1976 ) of the Income Tax Act, 1967 , is hereby amended—

(a) by the substitution for paragraph (b) of the following paragraph:

“(b) The lessee referred to in paragraph (a) is a lessee occupying the building or structure on the construction of which the expenditure was incurred and who so occupies it—

(i) under a relevant lease, or

(ii) as respects such expenditure incurred after the 28th day of January, 1981, under a lease to which a relevant lease granted to the Industrial Development Authority, the Shannon Free Airport Development Company Limited or Údarás na Gaeltachta is reversionary.”,

(b) by the substitution for the definition of “appropriate chargeable period” in paragraph (c) of the following definition:

“‘appropriate chargeable period’ means, in relation to any person who has incurred expenditure on the construction of a building or structure, the chargeable period related to the expenditure or, if it is later, the chargeable period related to the event (which shall be regarded as an event within the meaning of paragraph 1 (2) (b) of the First Schedule to the Corporation Tax Act, 1976 ), such event being—

(i) the commencement of the tenancy in a case in which the first use to which the building or structure is put is a use by a person occupying it by virtue of a tenancy to which the relevant interest is reversionary, or

(ii) in a case to which paragraph (b) (ii) refers, the commencement of the tenancy to which the relevant interest is reversionary;”,

and

(c) by the insertion in paragraph (c) after the definitions of “lease” and “lessee” of the following definition:

“‘relevant lease’ means a lease to which the relevant interest is reversionary;”.

Chapter VII

Profits or Gains from Dealing in or Developing Land