Louise O'Reilly
Question:207. Deputy Louise O'Reilly asked the Minister for Finance if gyms and sports clubs qualify for the temporary business energy support scheme. [50815/22]
View answerThursday, 13 October 2022
Questions (207, 212)
Joe Flaherty
Question:212. Deputy Joe Flaherty asked the Minister for Finance if dentists, doctors, physiotherapy practices and so on will be eligible for the energy supports for businesses announced in budget 2023 (details supplied). [50809/22]
View answerWritten answers
I propose to take Questions Nos. 207 and 212 together.
I indicated in my Budget speech that I would be introducing a Temporary Business Energy Support scheme (TBESS) to assist businesses with their energy costs over the winter months. The scheme is being designed to be compliant with the EU state aid temporary crisis framework and will need to be approved by the EU Commission in advance of making payments.
The scheme will be administered by the Revenue Commissioners and will operate on a self-assessment basis. It will be available to tax compliant businesses that are chargeable to tax under Case I of Schedule D where they meet the eligibility criteria. This means that, for example, gyms, hotels, retail shops, pubs, restaurants, cinemas, entertainment venues, food and drinks suppliers, farmers, etc. would be within the scope of the scheme.
The scheme will also be available to certain charities and sporting bodies who carry on a trade, the profits from which would be chargeable to tax under Case I of Schedule D but for an available income tax or corporation tax exemption. In such circumstances, the support will be available in respect of energy costs associated with those trading activities. This means that, where a sports club is established for the sole purpose of promoting athletic or amateur games and is an approved body for the purposes of section 235 of the Taxes Consolidation Act 1997, it will be eligible for support under the scheme in respect of its trading activities.
Businesses that do not carry on a trade, and would generally be regarded as a profession taxable under Case II of Schedule D, are not currently included in the scheme. Any decision regarding the extension of the scope of the scheme would be a matter for the Finance Bill.
It is proposed that the scheme will operate by comparing the average unit price for the relevant bill period in 2022 with the average unit price in the corresponding reference period in 2021. If the increase in average unit price is more than 50% then the threshold has passed and the business is eligible for support under the scheme. A business who has not seen an increase of 50% over the period will not be eligible for the scheme. Once eligibility criteria are met, the support for businesses will be calculated on the basis of 40% of the amount of the increase in the bill amount. A monthly cap of €10,000 will apply and an overall cap will apply on the total amount a business can claim in accordance with the State Aid Temporary Crisis Framework.
The operational details of the scheme are being worked through by officials and will be available soon.