Taxes Consolidation Act 1997 section 843

Capital allowances for buildings used for third level educational purposes

Section 843 provided a scheme of capital allowances (known as the college building allowance) for capital expenditure on the construction of buildings used for third level education purposes. The scheme is now spent.

• Qualifying expenditure on the construction of a premises used for third level education (or associated sporting or leisure activities) by an approved institution, together with related machinery or plant, could qualify for deemed industrial building allowances at 15% per annum for six years and 10% in year seven.
• The qualifying period ran from 1 July 1997 to 31 December 2006, with an extension to 31 July 2008 where at least 15% of the actual construction costs had been carried out by 31 December 2006.
• As a condition of the allowance, the approved institution had to raise from private (non-State) sources a sum equal to at least 50% of the qualifying expenditure, and the Minister for Finance had to certify that this condition was met before construction began.
• No balancing charge arose where a qualifying premises was sold or ceased to qualify more than seven years after it was first used.