Dáil Éireann - Volume 630 - 01 February, 2007

Written Answers. - Tax Code.

Mr. Ring asked the Minister for Finance if he will extend the capital allowance regime to include registered caravan and camping parks here. [3334/07]

  Mr. Cowen: Section 34 of the Finance Act 2005 introduced a number of changes to the capital allowance regime for hotels, guesthouses, holiday hostels and holiday camps. Guesthouses and holiday hostels were specifically brought into the capital allowances regime for the first time. Also, the entitlement to the capital allowances was provided for the first time on the basis of buildings being registered in the appropriate Fáilte Ireland register.

Following the Finance Act 2005 changes, the Revenue administrative practice of granting capital allowances in respect of buildings and structures erected in registered caravan parks was reviewed in consultation with my Department and the Department of Arts, Sport and Tourism. As a result of these deliberations, the Revenue Commissioners decided that retention of a non-statutory scheme on behalf of caravan parks was not appropriate and decided to withdraw it with effect from 1 January 2006. Allowances in respect of expenditure incurred before that date are not affected.

It should be noted that some of the expenditure that would typically be incurred by caravan park operators may be eligible for the “plant and machinery” capital allowances but this would not generally include any buildings or structures.

I have no plans at this time to extend the existing regime of capital allowances to registered caravan and camping parks.