Taxes Consolidation Act 1997 section 372AX

Accelerated capital allowances in relation to the construction or refurbishment of certain registered holiday camps

Section 372AX provides accelerated capital allowances for capital expenditure on the construction or refurbishment of registered holiday camps located in qualifying mid-Shannon areas.

• To qualify, the holiday camp must be sited wholly within a qualifying mid-Shannon area, must be registered under the Tourist Traffic Acts 1939 to 2003, must meet the relevant guidelines on amenities and facilities, and the mid-Shannon Tourism Infrastructure Board must have issued a written certificate confirming those conditions are satisfied.
• The writing-down allowance is 15% per annum under section 272, giving a seven-year write-down period (six years at 15% and one final year at 10%); the tax life and holding period for balancing allowance and balancing charge purposes is 15 years from the date of first use (or first use after refurbishment).
• In refurbishment cases, the accelerated allowances are available only where capital expenditure in the qualifying period is at least 20% of the market value of the building or structure immediately before that expenditure was incurred.
• Where capital expenditure straddles the start or end of the qualifying period, only the portion properly attributable to work actually carried out within the qualifying period is treated as having been incurred in that period.