James Bannon (Longford-Westmeath, Fine Gael)
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To ask the Minister for Finance if he will arrange a meeting in connection with an investment in respect of a person (details supplied) in County Westmeath which provides extensive employment; and if he will make a statement on the matter. [46900/12]

Michael Noonan (Limerick City, Fine Gael)
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The tax matters of concern to the individual named in the Question relate to VAT and capital allowances. With regard to the VAT issue addressed in the question, I am advised by the Revenue Commissioners that it would appear from the information provided that the named individual would have obtained a VAT input credit on the cost of acquiring the golf lodge on the basis that he would make a taxable supply of a long lease. For illustration purposes, the VAT input credit would have been €71,365 based on a VAT inclusive purchase price of €600,000 at the 13.5% VAT rate. VAT on the long lease would have been accounted for by the tenant on a reverse charge basis. Based on the limited information provided it would appear that the named individual has a number of options open to him none of which will require him to suffer a clawback on taking a surrender of the lease. These options include letting the property to an operator as he suggests and opting to tax that letting and independently letting the golf lodge in the holiday market subject to registering for VAT on a timely basis. The Revenue/Bord Fáilte rules referred to by the named individual are not mirrored in the VAT legislation.

With regard to the Schemes of Registered Holiday Cottages issue addressed in the question, I am further advised by the Revenue Commissioners that capital allowances on the construction of registered holiday cottages were available where capital expenditure was incurred prior to 31 July 2008. This date was the final termination date for incurring expenditure which could qualify for the allowances which were given at a rate of 10% per annum for ten years. The holiday cottage must have been part of a scheme of holiday cottages registered with Fáilte Ireland. Generally, a minimum of 8 cottages is required for registration purposes and there must also be a reception building. Registration must be maintained for a period of 10 years from first use in order to avoid a clawback of capital allowances granted. Where a cottage ceases to be part of a scheme, it can no longer be registered and if this occurs within the 10 years, the clawback of relief takes place. In these circumstances there is no mechanism whereby the clawback can be avoided.