(1) As on and from the 23rd day of April, 1998, Chapter 8 of Part 4 of the Taxes Consolidation Act, 1997, is hereby amended -

(a) in section 96(1), by the insertion of the following definitions after the definition of "rent":

"'rented residential premises' means a residential premises in respect of which any person is entitled to a rent or receipts from any easements;

'residential premises' means any building or part of a building used or suitable for use as a dwelling and any outoffice, yard, garden or other land appurtenant to or usually enjoyed with that building or part of a building.",

and

(b) in section 97, by the insertion of the following after subsection (2):

"(2A) Notwithstanding subsection (2) but subject to the other provisions of this section, a deduction shall not be authorised by paragraph (e) of that subsection by reference to interest on borrowed money employed on or after the 23rd day of April, 1998, in the purchase, improvement or repair of a premises which, at any time during the year, is a residential premises.

(2B) Subject to subsection (2C), subsection (2A) shall not apply in relation to interest on borrowed money employed -

(a) on or before the 31st day of December, 1998, in the purchase of a residential premises in pursuance of a contract which was evidenced in writing prior to the 23rd day of April, 1998, for the purchase of that premises,