Taxes Consolidation Act 1997 section 310

Allowances in respect of certain contributions to capital expenditure of local authorities

Section 310 provides capital allowances where a trader contributes towards capital expenditure incurred by a local authority on trade effluent treatment or water supply infrastructure.

• Where a trader contributes a capital sum towards local authority expenditure on an approved effluent treatment scheme or water supply asset, the contribution is treated as if the trader had directly purchased that asset for their trade, qualifying for writing-down allowances or wear and tear allowances accordingly.
• Wear and tear allowances are calculated at 20% or 12.5% of the capital sum actually contributed in each chargeable period, meaning allowances are given on an "as you pay" basis rather than on the full amount committed upfront.
• An "approved scheme" must be an effluent control scheme undertaken by a local authority with the approval of the Minister for the Environment and Local Government, and "trade effluents" must be matter discharged from trading premises into public sewers.
• If the trader's business is sold or transferred, any unused allowances pass to the successor; where only part of the trade is transferred, only the portion of unused allowances properly referable to that part transfers.