Taxes Consolidation Act 1997 section 372M

Accelerated capital allowances for industrial buildings in qualifying rural areas

Section 372M provides accelerated capital allowances for capital expenditure incurred on the construction or refurbishment of certain industrial buildings or structures situated in a qualifying rural area.

• Applies to industrial buildings or structures (such as factories, mills and dock undertakings) sited wholly within a qualifying rural area and used for the purposes of a trade.
• Owner-occupiers and lessors may claim an initial allowance of 50 per cent of qualifying capital expenditure, with annual writing-down allowances of 4 per cent on the balance.
• Owner-occupiers may alternatively claim free depreciation of up to 50 per cent; lessors cannot claim free depreciation.
• Refurbishment expenditure qualifies only if it is at least 10 per cent of the market value of the building immediately before the works.