Michael Lowry (Tipperary North, Independent)
Link to this: Individually | In context

Question 271: To ask the Minister for Finance the grants and financial supports available for the construction of nursing homes; the changes to the scheme; and if he will make a statement on the matter. [8985/06]

Brian Cowen (Laois-Offaly, Fianna Fail)
Link to this: Individually | In context

Capital expenditure incurred on the construction or refurbishment of registered nursing homes may be written off for tax purposes over seven years at the rate of 15% per annum over the first six years and 10% in the seventh year. To qualify for allowances the home must be operated or managed as a registered nursing home within the meaning of section 2 of the Health (Nursing Homes) Act 1990 and be registered under section 4 of that Act.

I will introduce a number of changes to this scheme in the 2006 Finance Bill. Section 37 of the Bill will apply to buildings and structures including registered nursing homes that are first used or first used after refurbishment on or after 1 August 2006. However, this date may be subject to amendment on Report Stage of the Finance Bill later today. The tax life of these buildings or structures will be extended to 15 years, as is the holding period for balancing allowance and balancing charge purposes. The write-off period and annual rate of write-off will remain unchanged.

Section 39 addresses an anomaly that existed on the claw back of allowances. Under the existing rules, the clawback provisions take effect if a registered nursing home is sold, destroyed, or if it "ceased altogether to be used". If any of these events occur within the seven year writing down or ten year holding period, the tax benefits must be repaid. However, if the facility continues to be used for a different purpose, which may be completely unrelated to health care, the investor loses entitlement to any future capital allowances, but there is no clawback of relief previously availed of. Section 39 provides that in future, if the facility ceases to be a registered nursing home at any time in the 15 year holding period, the clawback will be triggered and all allowances already availed of must be repaid. This change will apply to buildings and structures, including registered nursing homes, that are first used or first used after refurbishment on or after 1 January 2006. However, where a registered nursing home ceases to be in use as a registered nursing home and, within six months, becomes another type of relevant facility, such as qualifying residential units, convalescent homes, qualifying private hospitals, qualifying mental health centres and certain child care facilities, the provisions of this section are not triggered.

I am informed by the Minister for Health and Children that no grants are available for the construction of nursing homes from her Department.

Pat Carey (Dublin North West, Fianna Fail)
Link to this: Individually | In context

Question 272: To ask the Minister for Finance when repayment in respect of a Med 1 application will be made on behalf of a person (details supplied) in Dublin 11; and if he will make a statement on the matter. [8994/06]

Brian Cowen (Laois-Offaly, Fianna Fail)
Link to this: Individually | In context

I have been advised by the Revenue Commissioners that the person's Med 1 form has been processed and refunds are due to the person and his wife for the years 2004 and 2005. Cheques have been issued accordingly.