Vol. 498 No. 6
109 Mrs. Owen asked the Minister for Finance his views on the way in which capital tax allowances for the provision of child care facilities can assist in this provision in view of the fact that the return on capital investment of £12,000 would be £240 in the first year; and if he will make a statement on the matter. [28169/98]
It is not clear how the return of £240 is arrived at, but I can confirm to the Deputy that a qualifying capital investment of £12,000 would provide allowances of £1,800 each year over the first six years and an allowance of £1,200 in year seven. These allowances would be available for offset against the person's marginal rate of tax and therefore can be considered to be an incentive of value in the circumstances.
110 Mrs. Owen asked the Minister for Finance if the capital tax allowances will be available to child care centres that have made improvements or have commenced improvements; and if he will make a statement on the matter. [28170/98]
In accordance with the normal procedures for budget day announcements these new capital allowances will apply to building expenditure incurred on or after 2 December 1998 whether or not the improvement project has already commenced. Under tax law, capital expenditure is deemed to have been incurred when the amount in question becomes payable.
