The budget ring-fenced the capital allowances on hotels, which an individual passive investor may claim, to rental income. The new scheme for investment in quality hotel accommodation in seven counties in the north and north west of the country operates by not applying this general restriction to such hotels in the seven counties, apart from hotels in the designated seaside resorts in those counties. The budget did not restrict the allowances available to individuals directly involved in the running of hotels or to companies, and such allowances are available in these circumstances on a general basis throughout the State.
As the new arrangements have been effective only since budget day, it is too soon to assess the impact of the scheme. Also, it should be mentioned that this special scheme is being discussed with the EU Commission.