Finance Act 2025
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Living City Initiative | ||||||||
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30. The Principal Act is amended— | ||||||||
(a) in section 372AAA(1)— | ||||||||
(i) in the definition of “qualifying period”, by the substitution of “31 December 2030” for “31 December 2027”, | ||||||||
(ii) in the definition of “relevant house”, by the substitution of “1975” for “1915”, and | ||||||||
(iii) by the insertion of the following definitions: | ||||||||
“ ‘Commission Regulation (EU) 2023/2831’ means Commission Regulation (EU) 2023/2831 of 13 December 202314 on the application of Articles 107 and 108 of the Treaty on the Functioning of the European Union to de minimis aid; | ||||||||
‘de minimis aid’ means aid granted in compliance with Commission Regulation (EU) 2023/2831; | ||||||||
‘permissible ceiling of aid’ means the maximum amount of de minimis aid of €300,000 that may be granted to a single undertaking over any period of 3 years in accordance with Commission Regulation (EU) 2023/2831; | ||||||||
‘single undertaking’ has the meaning given to it by Article 2(2) of Commission Regulation (EU) 2023/2831;”, | ||||||||
(b) in section 372AAC— | ||||||||
(i) in subsection (1)— | ||||||||
(I) by the deletion of the definition of “property developer”, and | ||||||||
(II) by the substitution of the following definition for the definition of “qualifying expenditure”: | ||||||||
“ ‘qualifying expenditure’, means, notwithstanding section 279, capital expenditure incurred in the qualifying period on the conversion or the refurbishment of a qualifying premises after deducting from that amount of expenditure any sum in respect of or by reference to— | ||||||||
(a) that expenditure, | ||||||||
(b) the qualifying premises, or | ||||||||
(c) the conversion work, or as the case may be, the refurbishment work in respect of which that expenditure was incurred, | ||||||||
which the person has received or is entitled to receive, directly or indirectly, from the State, any board established by statute or any public or local authority, and for the purposes of giving relief under this section, any reference to expenditure being incurred shall include a reference to expenditure deemed under any provision of Part 9 to be incurred;”, | ||||||||
(ii) by the deletion of subsection (1A), | ||||||||
(iii) by the substitution of the following subsection for subsection (4): | ||||||||
“(4) (a) In relation to qualifying expenditure incurred before 1 January 2026 in the qualifying period on a qualifying premises, section 272 shall apply as if— | ||||||||
(i) in subsection (3)(a)(ii) of that section the reference to 4 per cent were a reference to 15 per cent, and | ||||||||
(ii) in subsection (4)(a) of that section the following were substituted for subparagraph (ii): | ||||||||
‘(ii) where capital expenditure on the conversion or refurbishment of the building or structure is incurred, 7 years beginning with the time when the building or structure was first used subsequent to the incurring of that expenditure.’. | ||||||||
(b) In relation to qualifying expenditure incurred on or after 1 January 2026 in the qualifying period on a qualifying premises, section 272 shall apply as if— | ||||||||
(i) in subsection (3)(a)(ii) of that section the reference to 4 per cent were a reference to 50 per cent, and | ||||||||
(ii) in subsection (4)(a) of that section the following were substituted for subparagraph (ii): | ||||||||
‘(ii) where capital expenditure on the conversion or refurbishment of the building or structure is incurred, 10 years beginning with the time when the building or structure was first used subsequent to the incurring of that expenditure.’.”, | ||||||||
(iv) by the substitution of the following subsection for subsection (5): | ||||||||
“(5) Notwithstanding section 274(1), no balancing allowance or balancing charge shall be made in relation to a qualifying premises by reason of any event referred to in that section which occurs more than— | ||||||||
(a) 7 years after the qualifying premises was first used subsequent to the incurring of the qualifying expenditure on the conversion or refurbishment of the qualifying premises where that qualifying expenditure was incurred before 1 January 2026, or | ||||||||
(b) 10 years after the qualifying premises was first used subsequent to the incurring of the qualifying expenditure on the conversion or refurbishment of the qualifying premises where that qualifying expenditure was incurred on or after 1 January 2026.”, | ||||||||
(v) by the deletion of subsections (8), (8A) and (10), and | ||||||||
(vi) by the insertion of the following subsection after subsection (10): | ||||||||
“(11) A claim for relief in accordance with this section may only be made by a person insofar as the aggregate of the claim, when taken together with other de minimis aid received, does not exceed the permissible ceiling of aid to the single undertaking of which the person is a part.”, | ||||||||
(c) in section 372AAD— | ||||||||
(i) in subsection (1)— | ||||||||
(I) by the deletion of the definition of “property developer”, | ||||||||
(II) by the substitution of the following definition for the definition of “eligible expenditure”: | ||||||||
“ ‘eligible expenditure’, means, notwithstanding section 279, capital expenditure incurred in the relevant qualifying period on the conversion or the refurbishment of a special qualifying premises after deducting from that amount of expenditure any sum in respect of or by reference to— | ||||||||
(a) that expenditure, | ||||||||
(b) the special qualifying premises, or | ||||||||
(c) the conversion work, or as the case may be, the refurbishment work in respect of which that expenditure was incurred, | ||||||||
which the person has received or is entitled to receive, directly or indirectly, from the State, any board established by statute or any public or local authority, and for the purposes of giving relief under this section, any reference to expenditure being incurred shall include a reference to expenditure deemed under any provision of Part 9 to be incurred;”, | ||||||||
and | ||||||||
(III) in the definition of “relevant qualifying period”, by the substitution of “31 December 2030” for “31 December 2027”, | ||||||||
(ii) by the deletion of subsection (2), | ||||||||
(iii) by the substitution of the following subsection for subsection (4): | ||||||||
“(4) (a) In relation to eligible expenditure incurred before 1 January 2026 in the relevant qualifying period on a special qualifying premises, section 272 shall apply as if— | ||||||||
(i) in subsection (3)(a)(ii) of that section the reference to 4 per cent were a reference to 15 per cent, and | ||||||||
(ii) in subsection (4)(a) of that section the following were substituted for subparagraph (ii): | ||||||||
‘(ii) where capital expenditure on the conversion or refurbishment of the building or structure is incurred, 7 years beginning with the time when the building or structure was first used subsequent to the incurring of that expenditure.’. | ||||||||
(b) In relation to eligible expenditure incurred on or after 1 January 2026 in the relevant qualifying period on a special qualifying premises, section 272 shall apply as if— | ||||||||
(i) in subsection (3)(a)(ii) of that section the reference to 4 per cent were a reference to 50 per cent, and | ||||||||
(ii) in subsection (4)(a) of that section the following were substituted for subparagraph (ii): | ||||||||
‘(ii) where capital expenditure on the conversion or refurbishment of the building or structure is incurred, 10 years beginning with the time when the building or structure was first used subsequent to the incurring of that expenditure.’.”, | ||||||||
(iv) by the substitution of the following subsection for subsection (7): | ||||||||
“(7) Notwithstanding section 274(1), no balancing allowance or balancing charge shall be made in relation to a special qualifying premises by reason of any event referred to in that section which occurs more than— | ||||||||
(a) 7 years after the special qualifying premises was first used subsequent to the incurring of the eligible expenditure on the conversion or refurbishment of the special qualifying premises where that eligible expenditure was incurred before 1 January 2026, or | ||||||||
(b) 10 years after the special qualifying premises was first used subsequent to the incurring of the eligible expenditure on the conversion or refurbishment of the special qualifying premises where that eligible expenditure was incurred on or after 1 January 2026.”, | ||||||||
(v) by the deletion of subsections (10), (11) and (13), and | ||||||||
(vi) by the insertion of the following subsection after subsection (13): | ||||||||
“(14) A claim for relief in accordance with this section may only be made by a person insofar as the aggregate of that claim, when taken together with other de minimis aid received, does not exceed the permissible ceiling of aid to the single undertaking of which the person is a part.”, | ||||||||
(d) by the insertion of the following section after section 372AAD: | ||||||||
“Capital allowances in relation to conversion or refurbishment of certain qualifying premises | ||||||||
372AAE. (1) In this section— | ||||||||
‘conversion’, ‘house’ and ‘letter of certification’ have the same meaning, respectively, as they have in section 372AAB; | ||||||||
‘qualifying expenditure’ means, notwithstanding section 279, capital expenditure incurred by a person in the relevant qualifying period on the conversion or the refurbishment of a qualifying premises after deducting from that amount of expenditure any sum in respect of or by reference to— | ||||||||
(a) that expenditure, | ||||||||
(b) the qualifying premises, or | ||||||||
(c) the conversion work or, as the case may be, the refurbishment work in respect of which that expenditure was incurred, | ||||||||
which the person has received or is entitled to receive, directly or indirectly, from the State, any board established by statute or any public or local authority and for the purposes of giving relief under this section, any reference to expenditure being incurred shall include a reference to expenditure deemed under any provision of Part 9 to be incurred; | ||||||||
‘qualifying premises’ means a building or structure (or part of a building or structure)— | ||||||||
(a) the site of which is wholly within a special regeneration area, | ||||||||
(b) the entirety of which, before the qualifying expenditure was incurred, was a relevant property liable to rates, | ||||||||
(c) in respect of which a letter of certification has issued for its conversion or refurbishment, as the case may be, into one or more than one house, and | ||||||||
(d) which, following the incurring of qualifying expenditure on its conversion or refurbishment, as the case may be, into one or more houses— | ||||||||
(i) is, or the relevant portion thereof is, a relevant property not rateable, and | ||||||||
(ii) the house or houses concerned are let on bona fide commercial terms for such consideration as might be expected to be paid in a letting of the house concerned negotiated on an arm’s length basis; | ||||||||
‘rate’ has the meaning assigned to it by section 4 of the Local Government Rates and Other Matters Act 2019 ; | ||||||||
‘relevant property’ shall be construed in accordance with Schedule 3 to the Valuation Act 2001; | ||||||||
‘relevant property not rateable’ means a property specified in paragraph 6 of Schedule 4 to the Valuation Act 2001; | ||||||||
‘relevant qualifying period’ means the period commencing on 1 January 2026 and ending on 31 December 2030. | ||||||||
(2) (a) Subject to paragraph (b) and subsections (3) to (8), the provisions of the Tax Acts relating to the making of allowances or charges in respect of capital expenditure incurred on the construction or refurbishment of an industrial building or structure shall, notwithstanding anything to the contrary in those provisions, apply in relation to qualifying expenditure on a qualifying premises as if the qualifying premises were, at all times at which it is a qualifying premises, an industrial building or structure in respect of which an allowance is to be made for the purposes of income tax or corporation tax, as the case may be, under Chapter 1 of Part 9 by reason of its use for the purpose specified in section 268(1)(a). | ||||||||
(b) An allowance shall be given by virtue of this subsection in relation to any qualifying expenditure on a qualifying premises only in so far as that expenditure is incurred in the relevant qualifying period. | ||||||||
(3) In relation to qualifying expenditure incurred in the relevant qualifying period on a qualifying premises, section 272 shall apply as if— | ||||||||
(a) in subsection (3)(a)(ii) of that section the reference to 4 per cent were a reference to 50 per cent, and | ||||||||
(b) in subsection (4)(a) of that section the following were substituted for subparagraph (ii): | ||||||||
‘(ii) where capital expenditure on the conversion or refurbishment of the building or structure is incurred, 10 years beginning with the time when the building or structure was first used subsequent to the incurring of that expenditure.’. | ||||||||
(4) Notwithstanding section 274(1), no balancing allowance or balancing charge shall be made in relation to a qualifying premises by reason of any event referred to in that section which occurs more than 10 years after the qualifying premises was first used subsequent to the incurring of the qualifying expenditure on the conversion or refurbishment of the qualifying premises. | ||||||||
(5) This section shall not apply where qualifying expenditure incurred does not exceed €5,000. | ||||||||
(6) Relief under this section shall not be given unless the following information is provided to the Revenue Commissioners as part of the first claim made by the person in accordance with subsection (2): | ||||||||
(a) the name, address and tax reference number of the person making the claim; | ||||||||
(b) the address of the qualifying premises in respect of which the qualifying expenditure was incurred; | ||||||||
(c) details of the aggregate of all qualifying expenditure incurred by the person in respect of the qualifying premises. | ||||||||
(7) Any information required to be provided to the Revenue Commissioners under this section shall be provided by electronic means and through such electronic systems as the Revenue Commissioners may make available for the time being for any such purpose. | ||||||||
(8) For the purposes only of determining, in relation to a claim for an allowance by virtue of subsection (2), whether and to what extent qualifying expenditure incurred on the conversion or refurbishment of a qualifying premises is incurred or not incurred in the relevant qualifying period, only such an amount of that expenditure as is properly attributable to work on the conversion or refurbishment of the qualifying premises actually carried out during the relevant qualifying period shall (notwithstanding any other provision of the Tax Acts as to the time when any capital expenditure is or is to be treated as incurred) be treated as having been incurred in that period. | ||||||||
(9) Where relief is given by virtue of this section in relation to capital expenditure incurred on the conversion or refurbishment of a building or structure, relief shall not be given in respect of that expenditure under any other provision of the Tax Acts. | ||||||||
(10) A claim for relief in accordance with this section may only be made by a person insofar as the aggregate of that claim, when taken together with other de minimis aid received, does not exceed the permissible ceiling of aid to the single undertaking of which the person is a part.”, | ||||||||
(e) in section 409F(2), in paragraph (a) of the definition of “area-based capital allowance”, by the substitution of “372AAC, 372AAD or 372AAE” for “372AAC or 372AAD”, and | ||||||||
(f) in Schedule 25B, by insertion of the following after the matter set out opposite Reference Number 38C: | ||||||||
“ | ||||||||
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”. | ||||||||