Finance Act, 1992
|
Restriction of capital allowances on holiday cottages. |
25.—Where, on or after the 24th day of April, 1992, a person incurs capital expenditure on the acquisition or construction of a building or structure which is, or is to be, an industrial building or structure by virtue of being a holiday cottage within the meaning of section 255 of the Income Tax Act, 1967 , and an allowance falls to be made in respect of that expenditure under section 254 (as amended by section 74 of the Finance Act, 1990 ) or 264 (as amended by section 52 of the Finance Act, 1986 ) of the Income Tax Act, 1967 — | |
(a) (i) neither section 307 (as amended by section 27 of the Finance Act, 1990 ) of the Income Tax Act, 1967 , nor | ||
(ii) subsection (2) of section 16 of the Corporation Tax Act, 1976 , | ||
shall apply or have effect as respects the whole or part (as the case may be) of any loss which would not have arisen but for the making of the said allowance, and | ||
(b) neither the proviso to subsection (1) of section 296 of the Income Tax Act, 1967 , nor subsection (6) of section 14 of the Corporation Tax Act, 1976 , shall apply or have effect as respects the said allowance: | ||
Provided that this section shall not apply to expenditure incurred before the 6th day of April, 1993, on the acquisition or construction of a building or structure (hereafter in this proviso referred to as “the holiday cottage”) which is, or is to be, an industrial building or structure by virtue of being a holiday cottage within the meaning of the said section 255 if— | ||
(a) a binding contract in writing for the construction of the holiday cottage was entered into, or | ||
(b) (i) a binding contract in writing for the purchase or lease of land for the construction of the holiday cottage was entered into, and | ||
(ii) an application for planning permission for the construction of the holiday cottage was received by a planning authority, | ||
before the 24th day of April, 1992. |