Tax Breaks - Tax Relief for Investment "Park and Ride" facilities.

Tax Breaks: Park-and-Ride Facilities

Budget 2006: This relief in it's current format is being discontinued. Transitional arrangements apply. The budget summary for 2006, and we quote, states:

"These schemes will be reintroduced in a more focused way; but the relief for commercial and residential developments associated with park-and-ride facilities will not be reintroduced."

The reliefs that had been available were:-

Tax Relief for Park-and-Ride Facilities
There are three types of relief available:-

Capital Allowances are available on construction and refurbishment expenditure of the park-and-ride facility as follows:-

50% initial allowance in Year One

Thereafter, 4% per annum up to 100% of expenditure

The same capital allowances are available for commercial premises at a park-and-ride facility

There is a limit for individual passive investors; your capital allowances claimable against non-rental income are limited to €31,750/Ł25,000

Residential Accommodation : "Section 23" Type Relief
In the case of residential accommodation at a park-and-ride facility, a "Section 23" type relief is available. This means that 100% of the capital expenditure of the residential units is available for deduction against rental income from all premises held (not just the accommodation at the park-and-ride facility).

Owner-Occupier Relief
An owner-occupier may claim 50% of the cost of their home as a tax free allowance over a 10 year period. The tax free allowance is given at the marginal rate of income tax.

Some Important Points

**Finance Bill 2002 - Important Change** - the Finance Bill 2002, in order to comply with EU Law, will exclude property developers from the list of those persons entitled to claim certain capital allowances under the scheme.

Following on from the Finance Bill 2001, the commercial premises must only provide services locally.
The facility must be approved by the relevant Local Authority

In the case of a park-and-ride facility, the allowances will be clawed back if the development is sold or ceases to be used as a park-and-ride facility within a period of ten years.

Refurbishment expenditure must be more than 10% of the market value of the facility prior to that expenditure having been incurred.

For residential accommodation, a certificate must be obtained stating that the expenditure on residential accommodation must be less than 25% of the total facility expenditure.

The Role of Boylan & Dodd

How will we help you utilise these allowances? We will:-

advise you on the full set of Revenue criteria

ensure you meet all local authority requirements

ensure you take full advantage of the tax break

Please EMail us by clicking here.

Tax Relief for Park-and-Ride Facilities
There are three types of relief available:- Capital Allowances are available on construction and refurbishment expenditure of the park-and-ride facility as follows:- 50% initial allowance in Year One Thereafter, 4% per annum up to 100% of expenditure The same capital allowances are available for commercial premises at a park-and-ride facility There is a limit for individual passive investors; your capital allowances claimable against non-rental income are limited to €31,750/Ł25,000 Residential Accommodation : "Section 23" Type Relief In the case of residential accommodation at a park-and-ride facility, a "Section 23" type relief is available. This means that 100% of the capital expenditure of the residential units is available for deduction against rental income from all premises held (not just the accommodation at the park-and-ride facility). Owner-Occupier Relief An owner-occupier may claim 50% of the cost of their home as a tax free allowance over a 10 year period. The tax free allowance is given at the marginal rate of income tax.
Some Important Points
Finance Bill 2002 - Important Change - the Finance Bill 2002, in order to comply with EU Law, will exclude property developers from the list of those persons entitled to claim certain capital allowances under the scheme. Following on from the Finance Bill 2001, the commercial premises must only provide services locally. The facility must be approved by the relevant Local Authority In the case of a park-and-ride facility, the allowances will be clawed back if the development is sold or ceases to be used as a park-and-ride facility within a period of ten years. Refurbishment expenditure must be more than 10% of the market value of the facility prior to that expenditure having been incurred. For residential accommodation, a certificate must be obtained stating that the expenditure on residential accommodation must be less than 25% of the total facility expenditure.
The Role of Boylan & Dodd
How will we help you utilise these allowances? We will:- advise you on the full set of Revenue criteria ensure you meet all local authority requirements ensure you take full advantage of the tax break Please EMail us by clicking here.