Clause 19

by inserting, immediately after the words “subsection (1) or (1A)” in subsection (2), the words “that is a pre‑25 March 2016 application”;

by deleting the words “such intensified use of the land for the purposes of such trade or business as may be prescribed by regulations” in subsection (2) and substituting the words “the prescribed intensified use of the land for the purposes of a prescribed trade or business”;

by deleting subsections (2A) and (2B) and substituting the following subsections:“(2A) The Minister or such person as he may appoint may, on application by a person who made an application under subsection (1) or (1A) pursuant to which a construction or renovation of a building or structure is approved under subsection (2), vary a condition of the approval as to the particular trade or business for which the building or structure may be used upon completion of the construction or renovation, if the Minister or the appointed person is satisfied that the ground mentioned in subsection (2) for approving an application under subsection (1) or (1A) continues to be met.(2B) The Minister or such person as he may appoint may, by notice in writing, approve an application made under subsection (1) or (1A) that is a post‑25 March 2016 application if, based on the information provided by the applicant, the Minister or the appointed person is satisfied that —

on completion of the construction or renovation, at least 80% of the total floor area of the building or structure will be used —

by —

a single person who is either the applicant or a person related to the applicant; or

2 or more persons who satisfy the requirements of relatedness; and

for one or more prescribed trades or businesses; and

the construction or renovation of the building or structure on the land promotes the prescribed intensified use of the land for the purposes of that trade or business or, if there is more than one trade or business, such of those trades or businesses as may be designated in the regulations.(2C) An approval under subsection (2B) is subject to the condition that, upon completion of the construction or renovation, at least 80% of the total floor area of the building or structure will be used —

by one or more persons specified in the notice mentioned in subsection (2B) who —

if it will be used by a single person, is either the applicant of the application concerned under subsection (1) or (1A), or a person related to the applicant; or

if it will be used by 2 or more persons, satisfy the requirements of relatedness; and

for one or more trades or businesses specified in the application.(2D) An approval under subsection (2B) may be subject to such other conditions as the Minister or the person appointed under that subsection may impose.(2E) The Minister or such person as he may appoint may, on application by a person who made an application under subsection (1) or (1A) pursuant to which a construction or renovation of a building or structure is approved under subsection (2B) —

substitute any person or trade or business mentioned in subsection (2C) with any other person or trade or business; or

add a person or trade or business to the person or trade or business mentioned in subsection (2C),if the Minister or the person appointed is satisfied that the requirements in subsection (2B)(a) and (b) continue to be met.(2F) Where a trade or business is prescribed by regulations under subsection (11A), then, unless otherwise provided in the regulations, the Minister or person appointed under subsection (2) or (2B), as the case may be, may only —

approve an application under subsection (2) for a renovation or construction because it promotes the prescribed intensified use of the land for that trade or business; or

approve an application under subsection (2B) because at least 80% of the total floor area of the building or structure will be used, on completion of the construction or renovation, by a person or persons mentioned in subsection (2B)(a)(i) for that trade or business or for trades or businesses which include that trade or business,if —

the application is made on or after a prescribed date; and

the application for planning permission or conservation permission for the construction or renovation is made on or after a prescribed date.(2G) In relation to any construction or renovation that is approved pursuant to an application to which subsection (2F) applies, the qualifying capital expenditure for which an allowance may be made under subsections (3) and (4) excludes any expenditure incurred before a prescribed date, unless the regulations under subsection (11A) provide otherwise.(2H) The prescribed date mentioned in subsection (2F)(i) or (ii) or (2G) is, unless otherwise specified in the regulations, the date the trade or business is prescribed by regulations under subsection (11A).(2I) To avoid doubt, a reference in subsections (2F) and (2H) to the prescribing of a trade or business under subsection (11A) is, in the case of an application made under subsection (1) or (1A) before 25 March 2016, a reference to the prescribing of a trade or business under subsection (2) in force immediately before that date.(2J) In relation to any construction or renovation that is approved pursuant to a post‑25 March 2016 application (other than one with only a single specified user and a single specified trade or business), the qualifying capital expenditure for which an allowance may be made under subsections (3) and (4) excludes any expenditure incurred before 25 March 2016.”;

by inserting, immediately after the words “subsections (5)” in subsection (4), “, (5AA)”;

by inserting, immediately after the words “trade or business” in subsection (4), the words “or (as the case may be) trades or businesses,”;

by deleting the word “No” in subsection (5) and substituting the words “Where the construction or renovation is approved pursuant to a pre‑25 March 2016 application, no”;

by deleting the words “or partnership” wherever they appear in subsection (5);

by inserting, immediately after subsection (5), the following subsection:“(5AA) Where the construction or renovation is approved pursuant to a post‑25 March 2016 application, no allowance is to be made under subsection (4) for any year of assessment unless —

in a case where 2 or more temporary occupation permits are to be issued for the subject of the approved construction or renovation, but not all of those temporary occupation permits have been issued, at least 80% of the total floor area of the subject of each temporary occupation permit that has been issued; or

in any other case, at least 80% of the total floor area of the subject of the approved construction or renovation,is used, at the end of the basis period for that year of assessment —

for the purposes of the specified trade or business or one or more of the specified trades or businesses; and

by —

one person who is a specified user and is either the applicant of the post‑25 March 2016 application or related to the applicant; or

2 or more persons who are specified users and satisfy the requirements of relatedness.”;

by deleting the words “subsection (5)” in subsection (5A) and substituting the words “subsections (5) and (5AA)”;

by deleting the words “any condition imposed under subsection (2)” in subsection (8) and substituting the words “the condition in subsection (2C), or any condition imposed under subsection (2) or (2D)”;

by inserting, immediately after subsection (11), the following subsection:“(11A) The Minister may make regulations prescribing matters required or permitted by this section to be prescribed, or necessary or convenient to be prescribed for carrying out or giving effect to this section.”;

by inserting, immediately after the words “subsection (2)” in the definition of “approved construction or approved renovation” in subsection (12), the words “or (2B)”;

by inserting, immediately after the definition of “port land” in subsection (12), the following definitions:“ “post-25 March 2016 application” means an application under subsection (1) or (1A) —

that is made on or after 25 March 2016; and

that relates to the construction or renovation of a building or structure for which an application for planning permission or conservation permission is made on or after 25 March 2016;“pre-25 March 2016 application” means an application under subsection (1) or (1A) that is not a post‑25 March 2016 application;”;

by deleting the words “which are incurred in respect of any construction or renovation on or after 23 February 2010 (in the case of subsection (1)) or 22 February 2014 (in the case of subsection (1A))” in the definition of “qualifying capital expenditure” in subsection (12);

by deleting the definition of “specified trade or business” in subsection (12) and substituting the following definitions:“ “specified trade or business” means —

the trade or business specified in a condition of approval under subsection (2) as one for which the building or structure may be used upon completion of the approved construction or renovation, including one substituted for that trade or business pursuant to a variation under subsection (2A); or

the trade or business or any of the trades or businesses mentioned in subsection (2C)(b), including one substituted for that trade or business or added under subsection (2E),as the case may be;“specified user” means the person or any of the persons mentioned in subsection (2C), including one substituted for that person or added under subsection (2E);”; and

by inserting, immediately after subsection (14), the following subsections:“(15) In this section —

2 or more persons satisfy the requirements of relatedness if —

each of them is related to one or more of the others; and

either —

one of them is the applicant of the application under subsection (1) or (1A) and the other or others is or are related to the applicant; or

all of them are related to the applicant; and

a person is related to another person if —

one of those persons beneficially holds, directly or indirectly, at least 75% of the total number of issued ordinary shares of the other person (being a company);

one of those persons is entitled, directly or indirectly, to at least 75% of the income of the other person (being a partnership);

a third person beneficially holds, directly or indirectly, at least 75% of the total number of issued ordinary shares of each of those persons (being companies);

a third person is entitled, directly or indirectly, to at least 75% of the income of each of those persons (being partnerships); or

a third person beneficially holds, directly or indirectly, at least 75% of the total number of issued ordinary shares of one of those persons (being a company), and is entitled, directly or indirectly, to at least 75% of the income of the other person (being a partnership).(16) A reference to a person in subsections (2B)(a)(i), (2C)(a), (2E)(a) and (b), (5AA)(ii) and (15), and in the definition of “specified user” in subsection (12), includes a partnership.”.