Taxes Consolidation Act 1997 section 658

Farming: allowances for capital expenditure on construction of buildings and other works

Section 658 provides for capital allowances, known as farm buildings allowances, for expenditure on the construction of farm buildings and certain other farm works, written off over a seven-year period.

• A farmer who incurs capital expenditure on the construction of farm buildings (excluding dwellings), fences, roadways, holding yards, drains, land reclamation, and other works may claim a farm buildings allowance written off at 15% per year for six years and 10% in year seven.
• Where a farmer is exempt from tax on farming profits for a particular year, any farm buildings allowance is deemed to have been made for that year and cannot be carried forward to a later year.
• Where farm land (or part of farm land) is transferred, the transferee becomes entitled to the remaining farm buildings allowances for chargeable periods after the transfer.
• No farm buildings allowance is due in respect of expenditure that qualifies for an industrial building allowance, or to the extent that expenditure is met by the State, the EU, or any other person.