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Dáil Éireann debate -
Tuesday, 4 Dec 2001

Vol. 545 No. 4

Written Answers. - Tax Incentives.

Enda Kenny

Question:

200 Mr. Kenny asked the Minister for Finance the incentives which exist for the provision of private nursing homes; and if he will make a statement on the matter. [30475/01]

In the 1998 and 1999 Finance Acts, I provided for capital allowances in respect of expenditure incurred on the construction, extension or refurbishment of buildings used as private registered nursing homes and convalescent homes. Expenditure incurred on the conversion of an existing building into such a nursing or convalescent home also qualifies.

The capital allowances are available, at the rate of 15% per annum for years one to six and at 10% in year seven, for expenditure incurred on or after 3 December 1997 in the case of nursing homes and for expenditure incurred on or after 2 December 1998 in the case of convalescent homes. Individual passive investors may only offset a maximum of £25,000 per annum of these allowances against their non-rental income. The nursing homes and convalescent homes in question must be registered with a health board in accordance with the Health (Nursing Homes) Act, 1990.

The buildings which qualify for the capital allowances must be used as nursing homes or convalescent homes for at least ten years, otherwise there will be a clawback of the capital allowances granted in the form of a balancing charge.

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