Revenue eBrief No. 223/22

22 December 2022

Accelerated Capital Allowances for Farm Safety Equipment manual

Tax and Duty Manual Part 09-02-07 - Accelerated Capital Allowances for Farm Safety Equipment [Section 285D TCA 1997] - has been created to provide guidance on the operation of the scheme.

Section 285D TCA 1997 provides for a scheme of accelerated capital allowances for capital expenditure incurred, on certain farm safety equipment, by a person carrying on a trade of farming. The expenditure must be incurred in the period 1 January 2021 to 31 December 2023 and the Minister for Agriculture, Food and the Marine must certify the expenditure. Once certified, the expenditure can be written off at a rate of 50% per annum over two years rather than at the normal rate of 12.5% per annum over eight years.

The scheme is subject to an overall annual budget of €5 million (excluding VAT). Additionally, there is a limit of €500,000 on the total amount of relief that can be granted to any person under this scheme.