Jimmy Deenihan
Question:135 Mr. Deenihan asked the Minister for Finance the tax incentive available for the building of a hotel under the seaside renewal scheme; and if he will make a statement on the matter. [7336/99]
Written Answers. - Tax Incentives.
Section 352 of the Taxes Consolidation Act provides, inter alia, for tax relief in respect of capital expenditure (exclusive of site costs) incurred on the construction of hotels under the designated seaside resort scheme. In the case of owner occupiers, relief can be claimed in respect of 75 per cent or 50 per cent of total qualifying expenditure in year one. The remaining expenditure can be claimed at 5 per cent per annum up to a maximum of 100 per cent. Lessors of such a hotel are entitled to relief in respect of 50 per cent of qualifying expenditure in year one and the remaining expenditure can be claimed at 5 per cent per annum up to a maximum of 100 per cent.
Relief is due exclusively in respect of expenditure incurred during the qualifying period of the scheme, which is due to end on 30 June 1999. However, section 39 of the 1999 Finance Bill as published, provides for a further extension of the qualifying period of the scheme until 31 December 1999, where the relevant local authority certifies that 50 per cent of the project cost is incurred by 30 June 1999.