The Gazette 1990

GAZETTE

PRIL

1990

Practice

Notes

Exempted Developments

An Exempted Development is a

development for which planning

permission is not required.

The categories of exempted de-

velopments are defined in:

a) Section 4 (I) of the 1963 Act

and,

b) In Planning Regulations made

by the Minister for the Environ-

ment pursuant to Section 4 (II)

(VIII) of the 1963 Act. The

current regulations made pur-

suant to this Section are:

1. The Local Government

(Planning & Development)

Regulations 1977 S.I. No. 65

of 1977 - Third Schedule

and Article II thereof.

2. Local Government (Planning

& Development) (Amend-

ment) Regulations 1981 S.I.

No. 154 of 1981.

3. Local Government (Planning

& Development) (Postal &

T e l e c ommu n i c a t i o n s)

(Exempted Development)

Regulations 1983 S.I. No.

403 of 1983.

4. Local Government (Planning

& Development) (Exempted

Development & Amend-

ment) Regulations 1984 S.I.

No. 4348 of 1984.

A development occurring after

1/10/84 which is not an exempted

development and for which plann-

ing permission has not been

obtained is an unauthorised struct-

ure or use and it should be noted

that although a development may

be an exempted development and

not require planning permission it

may involve works that require

building bye-law approval pursuant

to the provisions of the Public

Health (Ireland) Act, 1878. It should

also be noted that Article II (VIII) of

the 1977 Regulations provides that

any extensions, alteration, repair or

renewal of an unauthorised

structure or a structure the use of

which is an unauthorised use is not

exempted.

The Conveyancing Committee

has received a number of queries in

relation to whether or not floor area

exemption limits are cumulative.

The following examples, it is hoped,

will clarify the position:

1. In the case where a dwelling-

house has been extended and

the extension is up to the

exemption limit of 23 square

metres and the extension has

been erected without planning

permission, then any subse-

quent extension will require

planning permission.

2. Reference is made in the

Regulations to the original

floor area not being increased

by more than 23 square

metres. What is meant by the

"Original Floor Area" can

cause confusion. The better

argument appears to be that

the "original floor area" is the

original floor area of the house

excluding

any additions for

which planning permission

was

was not

required.

Accordingly, if an extension

which uses up the 23 square

metre allowance is erected on

foot of a planning permission,

then the Exempted Develop-

ment Regulations cannot be

used to extend the extension

beyond that size and any such

further extension will require

planning permission.

3. If a garage is converted into a

habitable area, then the floor

area of the garage is deducted

from the floor area available

for development under the

Exempted Development Regu-

lations.

•

Conveyancing Committee

VAT Group Scheme

With effect from the 1st day of

September, 1989 a revised scheme

for extended group registration was

introduced on a trial basis allowing

exempt and partially exempt

corporate bodies to become

members of a VAT Group. Section

8(8) of the VAT Act, 1972 (as

amended) allows for the treatment

of two or more taxable persons as

one taxable person.

Under Section 8 a person who

engages in the supply of the

taxable goods or services, that will

exceed the exemption limits giving

rise to a liability to VAT, in the

course or furtherance of a business

or profession shall be a taxable

person, and as such shall be

accountable and liable to pay the

VAT in respect of such supply.

The Revenue Commissioners are

empowered, in the case where

there are two or more taxable

persons who are so interlinked that

it would be expedient, and in the

interest of the efficient adminis-

tration of tax, deem the two parties

to be one and those persons may

be made jointly and severally liable.

The new regime however, does

not apply to the supply of

immovable goods, inter group

transfers in relation to exempt and

partially exempt bodies of

moveable or immovable goods or

leasing services and transfers of a

business or part of a business to a

group containing an exempt or

partially exempt body. Up to this a

limited form of group treatment

was permitted between partially

exempt and exempt bodies in so far

as the VAT was insignificant. The

new regime is more flexible but

there are conditions.

1. It applies only to corporate

bodies established in the state

although branches of foreign

companies also qualify.

2. All members of the group must

come under at least 50%

control.

3. The members must be bound

by financial, economic and

organisational links.

The Revenue Commissioners can

cancel the

registration

notification in writing which is

effective from the date specified in

the said notification.

Advantages of this scheme

a. Inter group transfers can now

be VAT free.

b. Additional VAT may be recover-

able on the whole group.

c. Financial companies which

heretofore kept inter group

management under strict

control can now charge for

inter group services without

worry.

d. In certain circumstances it may

be necessary to register before

joining a VAT group.

e. Cash flow benefits.

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