Brian O'Shea (Waterford, Labour)
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Question 274: To ask the Minister for Finance his proposals to meet the concerns of a person (details supplied) in County Waterford regarding the availability of capital tax allowance on Fáilte Ireland registered caravan and camping parks; and if he will make a statement on the matter. [3866/06]

Brian Cowen (Laois-Offaly, Fianna Fail)
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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 granting capital allowances in respect of buildings and structures erected in a registered caravan park was reviewed. The Department of Arts, Sport and Tourism held discussions with the Revenue Commissioners and the Department of Finance while examining submissions made to it on behalf of the Irish Caravan and Camping Council, ICCC. As a result of these discussions 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 these caravan park operators may be eligible for the plant and machinery capital allowances but this would not generally include any buildings or structures.