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Capital Allowances
| Method | Per annum |
Plant and Machinery | Straight line | 12.5% |
Fixtures and Fittings (in rented residential properties) | Straight line | 12.5% |
Industrial buildings | Straight line | 4% |
Motor vehicles (Expenditure per car restricted to €24,000) | Straight line | 12.5% |
Taxis and Short-term hire | Reducing balance | 40% |
CAPITAL ALLOWANCES
Accelerated Capital Allowances Scheme for Certain Energy Efficient Equipment
The tax incentive (introduced in Finance Act 2008) which provides for accelerated capital allowances of 100% of expenditure incurred by companies in the year the equipment is purchased, is being extended from three categories to seven categories. The new categories to be included in this scheme are:
- Data server related systems and large energy saving office equipment associated with information and Communications Technology
- Efficient heating/electricity provision equipment and control systems
- Efficient electrical and control equipment associated with Process and Heating Ventilation and Air-Conditioning systems
- Alternative fuel vehicles.
Capital Allowances for Newly Constructed Commercial Buildings
Where newly constructed commercial buildings are used before being sold and the sale does not take place within one year of first use, the purchaser receives the value of available capital allowances on expenditure on a more restrictive basis. This makes the purchase of the building a less attractive option. Accordingly, the one-year time limit for disposal is being extended to two years.
Seveso-Listed Industrial Facilities
A new ring-fenced tax incentive scheme will be introduced to facilitate the removal and relocation of Seveso-listed industrial facilities, which hinder the residential and commercial regeneration of Docklands in urban brownfield areas. The EU Seveso Directive (96/82/EC) seeks to protect public safety by placing land-use restrictions on new residential and commercial development near locations where potentially dangerous activities are undertaken. Further details will be outlined in the Finance Bill.
This scheme is subject to clearance by the European Commission from an EU State-Aids perspective.
Should you require any further information, please contact Susan Lennon.
Email: slennon@annebrady.ie
