Dáil Éireann Debate, Tuesday - 21 September 2021
169. Deputy Denis Naughten asked the Minister for Finance the current status of the scheme of accelerated capital allowances for fitness centre facilities by employers to employees introduced in the Finance Act 2017; the projected cost of the scheme at the time of its inclusion in the Finance Act 2017; the cost to date; and if he will make a statement on the matter. [44465/21]
View answerThe Accelerated Capital Allowances scheme for equipment and buildings for use in the provision of Childcare Services and Fitness Centres was initially introduced subject to commencement order in Finance Act 2017, and was then amended and commenced with effect from 1 January 2019 in Finance Act 2018. The purpose of this scheme is to encourage employers to develop childcare facilities and fitness centres onsite for their employees.
The scheme provides that an accelerated wear and tear allowance of 100% of the capital expenditure incurred on equipment for childcare services and fitness centre facilities can be claimed for the year in which the equipment is first used in the business. An accelerated industrial building annual allowance of 15% over 6 years and 10% in year 7 can be claimed for capital expenditure incurred on the construction of a childcare services or fitness centre facility. The scheme is only available to employers, for facilities to be provided for the benefit of employees. Employers cannot benefit from the scheme if the facilities are open for the general use of the public.
It was noted in advance of the scheme's commencement through Finance Act 2018 that the eventual cost of the scheme would be determined by the level of uptake by employers, and was therefore difficult to estimate. My Department estimated that the scheme would potentially have a cost over 8 years of circa €4 million in total. The fitness centre facilities element of this estimate amounted to €2.6 million, with the childcare services element amounting to €1.36 million. Year one of the scheme was estimated to cost €1.86 million, with the fitness centre facilities element of this estimate amounting to €1.37 million and the childcare services amounting to €0.49 million. The high estimated cost for year one relates to the 100% up-front allowance for qualifying equipment, whereas the relief for qualifying buildings is spread over a longer period.
I am advised by Revenue that, at this time, data is only available in respect of incorporated businesses for 2019. In that year, 29 claims have been made by incorporated business under the scheme at a cost of €0.1 million. A breakdown of the cost between claims relating to childcare facilities and to fitness centre facilities is not available.
