Tax Breaks - Transitional Arrangements for the ending of Tax Breaks.

Tax Breaks - Phase Out: Transitional Arrangements

Budget 2006: Budget 2006 brought major change to the area of tax breaks as follows...

Tax Breaks being terminated
The following are being terminated:

-Urban Renewal Scheme
-Rural Renewal Scheme
-Town Renewal Scheme
-relief's for hotels, holiday cottages
-Student accommodation
-Multi-storey car parks
-Third-level educational buildings
-Sports injury clinics
-Developments associated with park-and-ride facilities (new park and ride reliefs may be introduced).
-General rental refurbishment scheme.

Transitional Arrangements

The transitional measures will apply to “pipeline” projects.

These are projects that have incurred at least 15% of the qualifying construction costs (not including site costs) by 31st December 2006 (this condition will not apply to the general rental refurbishment scheme.)

Relief on qualifying expenditure is as follows:

100% relief on expenditure incurred 1st Jan - 31st December 2006

75% relief on expenditure incurred 1st Jan - 31st December 2007

50% relief on expenditure incurred 1st Jan to 31st July 2008

None thereafter.
Other existing scheme conditions must also be complied with, including other date restrictions.

Tax Breaks being terminated
The following are being terminated: -Urban Renewal Scheme -Rural Renewal Scheme -Town Renewal Scheme -relief's for hotels, holiday cottages -Student accommodation -Multi-storey car parks -Third-level educational buildings -Sports injury clinics -Developments associated with park-and-ride facilities (new park and ride reliefs may be introduced). -General rental refurbishment scheme.
Transitional Arrangements
The transitional measures will apply to “pipeline” projects. These are projects that have incurred at least 15% of the qualifying construction costs (not including site costs) by 31st December 2006 (this condition will not apply to the general rental refurbishment scheme.) Relief on qualifying expenditure is as follows: 100% relief on expenditure incurred 1st Jan - 31st December 2006 75% relief on expenditure incurred 1st Jan - 31st December 2007 50% relief on expenditure incurred 1st Jan to 31st July 2008 None thereafter. Other existing scheme conditions must also be complied with, including other date restrictions.