The MSTIS is a special initiative aimed at stimulating and encouraging sustainable investment along the River Shannon Corridor. The MSTIS which is aimed predominantly at the micro, small and medium tourism sector, is a tax measure aimed at stimulating tourism investment by providing accelerated capital allowances The central objective is the sustainable development of new tourism infrastructure, or the refurbishment of existing tourism infrastructure, with a view to increasing the inflow of tourist visitors to the area. The Government have set out a tourism investment corridor along the mid Shannon area an area where investment will be eligible. (See ‘What areas does it cover’ below)
No, this is not a grants scheme. It is a tax measure introduced in the 2007 Finance Act which allows accelerated capital allowances for agreed and specific capital investment in a range of tourism projects.
No, there is no required minimum investment or spend in order to qualify for the MSTIS, except in the case of refurbishment where a minimum of 20 per cent of the market value of a building or structure must be expended in the qualifying period..
The scheme covers specific designated areas in the following six counties, Clare, North Tipperary, Galway, Offaly, Roscommon and Westmeath. The first step in determining if you are eligible is to check the name of the townland where the proposed investment will take place and see if it is listed as one of the eligible District Electoral Divisions (DEDS). A listing of the eligible DEDs can be found on the web links under ‘Further Information’ below. A map can also be found at this web link.
The MSTIS commenced on the 1st June 2008. The scheme will finish on the 31st May 2011 and this is deemed the qualifying period. However, there is an earlier deadline for initial applications, which is the 31st May 2009. See ‘Deadline for Applications’.
The Minister for Arts, Sports and Tourism has established a Mid Shannon Tourism Infrastructure Board whose responsibility it is to consider all applications and data submitted. The Board has statutory powers to make decisions in advance of any work commencing on approval and certification of construction and refurbishment of buildings or structures under the MSTIS.
All proposals which are seeking to avail of the MSTIS must seek approval under the pre-certification process, prior to commencing construction or incurring expenditure. The Scheme also requires that your application for pre certification process is submitted in conformance with the Schemes guidelines before 31st May 2009. (See pre-certification application period)
The guidelines and the legislation as enacted in the 2007 Finance Act lists the specific types of activities and associated works that are eligible. The specific details for each of the headings are set out on the web (See further information section below)
The eligible works headings are as follows:
Education tourism facilities
Visitor attractions/centres
Cultural facilities
Wellness and self development amenities and facilities
Equestrian facilities
Facilities for water-sports activities
Training facilities for adventure activities and/or simulated facilities
Facilities for boat rental and inland cruising
Outdoor activity centres
Certain restaurants and cafés
Registered holiday camps
The relief only applies to buildings and structures. Relief is not available for improvements to land (e.g. walkways, landscaping etc).
The MSTIS scheme covers the development of new facilities and the refurbishment of existing facilities as outlined above. In the case of refurbishments, the project expenditure must exceed 20% of the market value of the property before work commences.
In certain circumstances where accommodation is constructed as part of a wider development and where it meets all of the requirements under the guidelines, accommodation can be eligible. The development of Holiday Camps which comprise recreation, accommodation for a minimum of 50 people and central dining and reception facilities is eligible. However, accommodation which is registered stand alone accommodation such as hotels, guesthouses, holiday hostels and camping and caravanning parks are excluded from the scheme.
No, golf courses and other alterations to land are ineligible. (Golf clubhouses however, may be eligible).
As this is a tourism scheme, projects which are intended primarily for a local residents’ market are not eligible. In addition, the legislation specifically excludes certain other premises:
- Industrial buildings
- Facilities for gambling, gaming or wagering of any sort
- Licensed premises
- Plant and machinery, as they may already qualify for tax relief in their own right
If any part of the construction or refurbishment expenditure is met directly
or indirectly by the State or any State bodies (e.g. by a tourism capital grant or BES funding) then it cannot also qualify for relief under the MSTIS scheme.
However, other parts of your overall project may be eligible for other State supports (e.g. a feasibility study from a County Enterprise Board)
Tax relief is granted only when the Board has, after the expenditure has been incurred, certified in writing that the construction and/or refurbishment has been carried out in accordance with the set criteria having regard to any relevant conditions imposed. The Board must confirm the coming into use of the development concerned. If for some reason, such as delay in construction, a development is not fully completed by the termination date of 31st May 2011, relief is confined to expenditure incurred before the termination date, and may only be granted on completion and coming into use of the total project. It should be noted that the ultimate decision to allow, withhold or claw-back capital allowances under the Scheme rests with the Revenue Commissioners.
Failte Ireland and Shannon Development have been appointed to promote and administer the scheme. In the first instance applications must be submitted through Failte Ireland or Shannon Development dependent upon the location of the proposed development. The address for applications is listed under ‘further information’ below.
Both Shannon Development and Failte Ireland strongly advise that prior to submitting a formal application, you should read the ‘Mid Shannon Scheme Application Guidelines’ document on the web.(see ‘Further Information’ below) This lists in detail all the steps that must be taken and the information required in submitting an application through Shannon Development or Failte Ireland for onward consideration by the Mid Shannon Tourism Infrastructure Board.
Prior to commencing any construction, project promoters must submit a detailed application to the Mid Shannon Tourism Infrastructure Board. The application process is set out in detail on the application guidelines process on the Failte Ireland and Shannon Development websites. Please note that a valid application for full planning permission must have been made to the local authority concerned prior to applying for pre-certification (See further information)
Applications under the pre-certification process must be submitted prior to the 31st May 2009. This date is set out in the guidelines for the scheme and any application received after that date will be null and void.
There are a number of requirements in submitting an application and these are set out under the Mid Shannon Scheme Application guidelines which can be found on the Failte Ireland and Shannon Development websites (see ‘further information’ below).
The main points to note are:
Details, Description and Project Outline
Confirmation of planning application to County Council
Proposed capital expenditure outline
Details of contribution to tourism development
How the project meets national and regional tourism objectives
Environmental and design information
Nature and extent of accommodation
However project promoters are advised to read the details of the scheme and to take independent professional advice and to consult with either Shannon Development or Failte Ireland as appropriate before submitting an application.
The terms of the agreement on the scheme finalised with the European Union places restrictions on the level of aid that may be permitted for large scale projects under the MSTIS.
For the pre-certification process, it is a requirement to have submitted an application for full planning permission to the relevant local authority for your development, prior to making an application to the Mid Shannon Tourism Infrastructure Board. Again Failte Ireland and Shannon Development would recommend that prior to submitting your planning application, your professional advisor would engage in preplanning discussions with the Planning Department concerned.
In formulating a business plan and in preparing your project concept, there are a number of documents that you should consider reading including:
Fáilte Ireland's Tourism Product Development Strategy 2007-13
http://www.failteireland.ie/getdoc/cbfcd692-3336-4d27-8dab-8cdb67bf40ea/Tourism-Product-Development-Strategy--2007---2013.aspx
Shannon Region Tourism Strategy
http://www.shannon-dev.ie/media/Media,7543,en.pdf
...etc
Shannon Development and Failte Ireland have put up specific information relating to the scheme on the web. This includes a map of the eligible areas, listing of eligible works, application procedure, guidelines, copies of presentations and brochures and other relevant information. The addresses are:
www.shannondevelopment.ie/Tourism/MidShannonTourismInvestmentScheme/ and
www.failteireland.ie/Developing-Enterprises/Investment-Support/Tax-Schemes
Complete details regarding the criteria for the Mid Shannon Scheme can be found in the “Guidelines on Approval and Certification for the Mid Shannon Tourism Infrastructure Board” issued by the Minister for Arts, Sport and Tourism in consultation with the Minister for Finance which can be viewed and downloaded at http://www.arts-sport-tourism.gov.ie/ or from the agency websites .It is essential that all applicants fully familiarize themselves with, and follow the requirements set out in, these Guidelines.
Failte Ireland and Shannon Development would welcome the opportunity to discuss your project with you in advance of any formal submission being received. Who can I contact to discuss my proposal?
| Shannon Development Counties Clare, North Tipperary & West Offaly |
Fáilte Ireland Roscommon, Westmeath, North Offaly & Galway |
John Crowe |
Gordon Gaffney |
Ruairí Deane |
Tracey Coughlan |
Eva Dearie |
Mr. John Crowe
Mid Shannon Tourism Investment Scheme
Shannon Development
Shannon Town Centre
Shannon
Co Clare
Mr. Gordon Gaffney
Mid Shannon Tourism Investment Scheme
Failte Ireland
Baggot Street Bridge
Dublin 2
Gordon.gaffney@failteireland.ie
Applications being made through Fáilte Ireland must be submitted in the required format by e-mail. Supporting documentation, as required, should be included as scanned attachments. A signed copy of the covering letter accompanying the application should be forwarded by post.
NOTE:
Both Failte Ireland and Shannon Development strongly recommend that you seek the professional advice from qualified personnel such as an accountant or tax advisor at an early stage. As this scheme is essentially a tax scheme, each project and individual or companies circumstances will be different and its is imperative that project promoters take independent specialist accountancy and tax advice in respect of any potential investment.