Accelerated Capital Allowances on Farm Safety Equipment 15 January 2021
The Government are set to introduce a scheme to accelerate a claim for capital allowances on the purchase of certain farm safety equipment subject to an annual total equipment cost of €5 million (excluding VAT) per annum. The proposed scheme is subject to a Ministerial commencement order which is expected to issue in the coming weeks.
Currently, capital allowances are available at 12.5% per annum over eight years for agricultural equipment.
The proposed scheme will allow “eligible persons” to claim accelerated capital allowances of 50% per annum over two years for certain safety equipment in the period 1 January 2021 to 31 December 2023. The eligible person must have obtained a “qualifying certificate” in respect of the safety equipment.
- Eligible Persons:
A person carrying on farming, the profits or gains of which are chargeable to tax. This includes sole traders, partnerships and/or persons farming through companies.
- Qualifying Certificate:
The scheme will be administered by the Department of Agriculture, Food and the Marine (DAFM). For the purposes of ensuring the €5 million (excluding VAT) total equipment cost per annum ceiling is not breached, it is intended that the DAFM would issue a Farm Safety/Adaption Accelerated Capital Allowance Certificate for submission to Revenue in support of such claims.
In this regard, it may be necessary to obtain the qualifying certificate prior to purchasing the eligible safety equipment.
- Qualifying farm safety equipment:
Examples of items of farm safety equipment eligible for accelerated capital allowances include:
- Hydraulic linkage arms mounted tractor jacking systems
- Big bag (equal to or greater to 500kb) lifter, with or without integral bag cutting system
- Chemical storage cabinets
- Animal anti-backing gate for use in cattle crush or race
- Quick hitch mechanism for rear and front three-point linkage to enable hitching of implements without need to descend from tractor
- Provision of access lift, hoist or integrated ramp to farm vehicle, including modified entry when required.
- Wheelchair restraints
- Wheelchair docking station
- Modified controls to enable full hand operation of farm vehicle
- Modified seating to enable operation of a farm vehicle
- Additional steps to farm vehicle or machinery to provide easier access
- Modified farm vehicle or machinery controls to enable control by hand or foot
- Hydraulically located lower three-point linkage arms.
For the purposes of the above, a farm vehicle is defined to mean an agricultural tractor, agricultural self-propelled machine, all-terrain vehicle, or utility terrain vehicle.
- How to claim the accelerated capital allowances?
The claim will be made when completing the relevant annual return for the sole trader, partnership, limited company etc.
Please contact your usual PSC contact if you require any assistance.