Taxes Consolidation Act 1997 section 380A

Example

In 2000, during the qualifying period, a developer constructs a purpose-built student apartment block in an area designated under the relevant guidelines as a qualifying area for a nearby university. The total cost of the project is €5 million, of which €1 million is attributable to the acquisition of the site.

Applying the section 380A definition of "market value", the value referable to the building itself, and therefore the figure relevant for the purposes of the Part 11A relief, is the open market value of the completed property excluding the portion attributable to the land. In this example, that broadly corresponds to the €4 million of construction expenditure rather than the full €5 million project cost.

The apartments are then let under qualifying leases to students attending the designated institution, in accordance with the terms set out in the relevant guidelines. Because the expenditure was incurred between 1 April 1999 and 31 March 2003, and the accommodation, area and lease terms all meet the conditions in the guidelines, the project falls within the scope of the original Part 11A scheme — now found, following the Finance Act 2002 consolidation, in Chapter 11 of Part 10.