Finance Act 2006

Property Incentive Schemes

The following property-based tax incentive schemes are to be discontinued: the urban renewal, rural renewal and town renewal schemes, and the special reliefs for hotels, holiday cottages, student accommodation, multi-storey car parks, third-level educational buildings, sports injury clinics, developments associated with park-and-ride facilities, and the general rental refurbishment scheme.

Transitional measures will apply provided at least 15% of the total construction expenditure on the project has been incurred by 31 December 2006. In such cases the following proportion of the expenditure in each period will qualify for the full relief:

• Up to 31 Dec 2006 100%
• 1 Jan 2007 to 31 Dec 2007 75%
• 1 Jan 2008 to 31 Jul 2008 50%
• After 31 Jul 2008 Nil

Other existing scheme conditions must also be complied with – for example in many instances full planning permission must have been applied for before the end of December 2004.

There is no proposal to change the existing rules in relation to the tax reliefs for investment in childcare facilities, private hospitals and private nursing homes.