Finance Act, 1990

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Application of certain allowances in relation to certain expenditure.

81.—(1) This section applies to—

(a) machinery or plant or an industrial building or structure which is provided for the purposes of a project approved for grant assistance by the Industrial Development Authority, the Shannon Free Airport Development Company Limited or Údarás na Gaeltachta on or before the 31st day of December, 1990, and

(b) (i) a building or structure which is to be an industrial building or structure within the meaning of section 255 (1) (d) of the Income Tax Act, 1967 , and which is to be registered in a register kept by Bord Fáilte Éireann under the Tourist Traffic Acts, 1939 to 1987, and

(ii) machinery or plant which is provided for the purposes of a trade or part of a trade of hotel keeping carried on in the said building or structure,

where a binding contract for the provision of the building or structure was entered into before the 31st day of December, 1990:

Provided that this section shall not apply if the said building or structure is not registered, within 6 months after the date of the completion of the said building or structure, in a register kept by Bord Fáilte Éireann under the Tourist Traffic Acts, 1939 to 1987, and where by virtue of this section any allowance or increased allowance has been granted any necessary additional assessments may be made to give effect to this proviso.

(2) Section 251 of the Income Tax Act, 1967 , shall have effect in relation to capital expenditure incurred on the provision of machinery or plant to which this section applies as if—

(a) in subsection (3), “or on or after the 1st day of April, 1992” (inserted by this Act) were deleted,

(b) in subparagraph (ii) of paragraph (bb) (inserted by the Finance Act, 1988 ) of subsection (4), “and before the 1st day of April, 1991,” were deleted, and

(c) paragraph (bbb) (inserted by this Act) of subsection (4) were deleted.

(3) Section 11 of the Finance Act, 1967 , and section 26 of the Finance Act, 1971 , shall have effect in relation to an allowance which falls to be made under section 241 of the Income Tax Act, 1967 , for wear and tear of any machinery or plant to which this section applies as if—

(a) in relation to the said section 11, the provisions of section 71 had not been enacted, and

(b) in relation to the said section 26, the provisions of section 72 had not been enacted.

(4) Section 254 of the Income Tax Act, 1967 , shall have effect in relation to capital expenditure incurred on the construction of a building or structure which is to be an industrial building or structure to which this section applies as if—

(a) the following provision were substituted for paragraph (a) of subsection (2A):

“(a) in relation to capital expenditure incurred on or after the 16th day of January, 1975, on the construction of a building or structure in respect of which an allowance under this Chapter falls to be made by reason of its use for a purpose specified in paragraph (a) or (b) of section 255 (1), as if ‘one-half’ were substituted for ‘one-tenth’, and”,

(b) paragraph (aa) (inserted by this Act) of subsection (2A) were deleted, and

(c) subsection (2B) (inserted by this Act) were deleted.

(5) Section 25 of the Finance Act, 1978 , shall have effect in relation to capital expenditure incurred on the construction of a building or structure which is to be an industrial building or structure to which this section applies as if the provisions of section 76 had not been enacted.