Vol. 474 No. 8
24 Mrs. O'Rourke asked the Minister for Finance if he is concerned that enterprise may be stifled in view of changes proposed that may result in the establishment of new businesses being postponed until after 1 April 1997; and if he will make a statement on the matter. [2922/97]
The Deputy is referring to the new relief for pre-trading expenses which I announced in the budget. Expenses which are wholly and exclusively incurred for the purpose of a trade or profession not more than three years prior to the commencement of trading and which would have been allowable had they been incurred after trading commenced, will be deductible against the trading income of the business once it commences trading. I announced in the budget that the relief would be available to businesses which commenced trading on or after 1 April 1997. Since it was intended to have the details concerning the operation of the relief contained in the Finance Bill which will be published in March, a starting date of 1 April was chosen because it was felt that, as this was a new relief, new businesses which would benefit from it should be aware of its precise application before seeking to avail of it.
Having considered the matter in light of various representations received since the budget and, in keeping with this Government's commitment to enterprise development, I am prepared to have the relief commence from budget day rather than 1 April to facilitate new businesses which commence trading between 22 January and 1 April.
