Taxes Consolidation Act 1997 section 283

Initial allowances

Section 283 provided for an initial allowance in respect of capital expenditure on new machinery or plant used for the purposes of a trade.

• An initial allowance of 100% or 50% could be claimed on capital expenditure for new machinery or plant (excluding road vehicles) used wholly and exclusively for trade purposes, but only in very specific circumstances.
• A 100% initial allowance applied to machinery or plant used for relevant trading operations in designated areas such as Shannon or the IFSC, or for projects approved by an industrial development agency between 1 January 1986 and 31 December 1988 where expenditure was incurred before 31 December 1996.
• A 50% initial allowance applied to machinery or plant provided for projects approved for grant assistance by an industrial development agency between 1 January 1989 and 31 December 1990, where expenditure was incurred before 31 December 1997 (or 31 December 2002 for certain listed projects qualifying for section 130 loan financing).
• Where a 50% initial allowance was claimed for expenditure incurred on or after 1 April 1989, no wear and tear allowance could be claimed for the same chargeable period, and no accelerated wear and tear allowances could be claimed for any subsequent period.