Bernard Allen
Question:240 Mr. Allen asked the Minister for Finance the plans, if any, he has to introduce measures to ensure that capital allowances are operated to focus on the quality of care instead of ways of providing tax shelters. [3116/00]
Written Answers. - Tax Code.
Section 268 (1) (g) of the Taxes Consolidation Act, 1997, provides for capital allowances in relation to nursing homes. These allowances apply in respect of capital expenditure incurred from 3 December 1997 on building new nursing homes, upgrading or extending existing homes or converting existing buildings into nursing homes. The allowance is 15% of the capital expenditure in years one to six, with 10% in year seven.
As set out in the legislation, tax relief is only provided in cases where the nursing home is privately owned and registered with a health board in accordance with the Health (Nursing Homes) Act, 1990. Furthermore the legislation provides for a clawback of the capital allowance if a premises ceases to be used as a nursing home within a period of ten years beginning with the time when the building was first used. The capital allowances are subject to the £25,000 limit per annum on the amount of allowances which an individual passive investor can claim against non-rental income.
Issues relating to the quality of care rests in the first instance with the health boards and ultimately with the Department of Health and Children. If the Deputy is aware of any case where these standards are not being complied with, he should contact the relevant health board or the Department of Health and Children.