Revenue Note for Guidance
This section sets out what constitutes “qualifying expenditure” in the case of owner-occupiers. The term is used to describe expenditure by such owner-occupiers on qualifying residential accommodation. The expenditure can be expenditure on the construction of, conversion into, or refurbishment of a qualifying premises which is first used by the individual who incurs the expenditure as his or her sole or main residence. The refurbishment of a facade will also qualify in the case of a qualifying premises which is within a qualifying town area.
In the case of the Living over the Shop Scheme, expenditure on “necessary construction” rather than on construction will qualify. In the case of a building which is within the site of a qualifying park and ride facility only construction expenditure qualifies.
Site development costs will also qualify but any grants received must be deducted.
(1) Subject to subsection (3), “qualifying expenditure” for the purposes of the Chapter means expenditure incurred by an individual on the construction, conversion, or refurbishment of a qualifying premises, and in the case of a qualifying premises which is wholly within a qualifying town area, the refurbishment of a facade. The qualifying premises must be a qualifying owner-occupied dwelling. Also the expenditure which qualifies is reduced by any sum which the individual receives, directly or indirectly, from the State, any board established by statute or any public or local authority.
(2) A “qualifying owner-occupied dwelling” means a qualifying premises which is first used by the individual as his or her only or main residence, after the qualifying expenditure has been incurred.
(3) Reference in subsection (1) to “construction” is to be treated as a reference to “necessary construction”, in the case of the Living over the Shop scheme i.e. relief is restricted to “necessary construction”. In the case of the Park and Ride scheme, reference to “construction of, conversion into, or, as the case may be, refurbishment of” is to be treated as a reference to “construction of” i.e. relief is restricted to “construction” only.
(4) Provision is made that section 372AN(7), which treats references to construction, conversion, or refurbishment as including site development costs, applies with any modification for the purposes of this section.
Relevant Date: Finance Act 2021