Dáil Éireann Debate, Tuesday - 24 October 2006
332 Mr. Lowry asked the Minister for Finance the grants and financial supports available for the renovation or conversion of dwelling homes to nursing homes; and if he will make a statement on the matter. [34593/06]
View answerCapital expenditure incurred on the construction or refurbishment of registered nursing homes may be written off for tax purposes over 7 years at the rate of 15% p.a. over the first 6 years and 10% in year 7. Capital expenditure incurred on the renovation or conversion of a dwelling house also qualifies for such capital allowances. As a result of changes made in Finance Act 2006, the registered nursing home must be retained for a period of 15 years to avoid a clawback of any allowances already claimed. The holding period was previously 10 years. However, the tax life of the building was also increased to 15 years so that it will be possible for a subsequent purchaser of the registered nursing home to claim capital allowances where a sale takes place within the 15-year period. The longer 15-year holding period and tax life will come into operation for registered nursing homes that are first used, after the qualifying expenditure is incurred, from 1 February 2007
To qualify for allowances the registered nursing home must be operated or managed as a registered nursing home within the meaning of section 2 of the Health (Nursing Homes) Act, 1990 and be registered under section 4 of that Act.
I am also informed by the Minister for Health and Children that there are no grants available for the conversion or renovation of nursing homes from her Department.
