Revenue Note for Guidance

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Revenue Note for Guidance

315 Property used for purposes of “exempted trading operations”

Summary

No balancing allowance or balancing charge will arise in respect of any property of a company used exclusively by it in carrying on tax exempt trading operations in the Shannon Free Airport Area. Where the property was used only partly for such purposes, a balancing allowance or charge as is just and reasonable is to be made to or on the company.

Details

Application

(1) The section applies where an event occurs in respect of any property which gives rise (or but for this section would give rise) to a balancing allowance or charge to be made to or on a company which obtained a certificate from the Minister for Finance under section 374(2) of the Income Tax Act, 1967 or section 70(2) of the Corporation Tax Act, 1976. Such a certificate would have exempted (the exemption ceased to apply from 1990) from income tax or corporation tax certain trading operations carried on by the company in the Shannon Free Airport Area.

Property used exclusively for exempted trading operations

(2) If the particular property has been used exclusively for exempted trading operations, no balancing allowance or charge is to be made in respect of the property.

Property used partially for exempted trading operations

(3) Where the property has been used partly for exempted trading operations and partly for other trading operations, the amount of the balancing allowance or charge to be made in respect of the property is to be such amount as is just and reasonable.

Relevant Date: Finance Act 2021