Seaside Resort Relief - Section 48

Twiggy69

Hello fellow Boardies. I have read a lot about Section 23 & Section 50 relifs being severly curtailed in the recent budget, however, I saw nothing specific referring to this Scheme. Has it escaped the wrath of the Finance Minister? (Hopefuly!!!)

Mr. Incognito

http://www.revenue.ie/en/tax/it/reliefs/seaside-resort-relief.html

This relief ceased December 1999.

Twiggy69

Thank you Mr Incognito, I realised I may have phrased my question incorrectly. I believe the property I purchased was one of the very last to beat that cut-off deadline at the time .

I should have asked are the Capital Allowances ceasing for owners who have been claiming them on properties that qualifies for this relief, or are they guilloteened as per the Section 23 & 50 relief after 2014? To date I have seen no specific reference to this Section 48 scheme, whereas the Section 23 & 50 have specifically been mentioned. Any further thoughts???

Alan Shore

I think that the Seaside resort relief falls into the Capital Allowances Restriction Section which are subject to the same restrictions. Check out http://www.budget.gov.ie/budgets/2011/Documents/Summary%20of%20Measures%20Combined.pdf Section B7. If the 10 year period is up then the allowances are lost.
You should ask your accountant on the specifics of your own case.

Twiggy69

Many thanks Alan,
I don't use an accountant, I handle my own Returns. I might just send in an enquiry to Revenue, but I know, I struggled to get a Staff member who was familiar with the specifics of the Seaside Resort Scheme in the past. Based on the document you furnished, the issue of the Capital Allowances could be interpreted as specific to Section 23 properties, or all encompassing to all such Relief schemes.

I will be watching this matter closely. Surely some of the property moguls will be disputing this decision in the Courts? We certainly live in interesting times!:rolleyes:

Regards,
T

Alan Shore

Hi, I think you are clutching at straws.
S23 reliefs are granted by way of an expense in the year of acquisition. Capital Allowances are granted on various basis over a number of years. ALL property based incentives are being affected, hotels, nursing homes, seaside resorts ect.
I agree that there may be a challange by there was no mention of a challange when the restriction on the amount of capital allowances claimable each year was reduced to 80k per annum.