Taxes Consolidation Act 1997 section 669B

Annual allowance for capital expenditure on purchase of milk quota

Section 669B (now repealed) provided for a writing down allowance enabling qualifying expenditure on the purchase of a qualifying milk quota to be written off over a seven-year period.

• A person carrying on the trade of farming could claim a writing down allowance for qualifying expenditure incurred on the purchase of a qualifying milk quota.
• The writing down period was seven years, starting at the beginning of the chargeable period in which the qualifying expenditure was incurred.
• The annual allowance was calculated using the formula A × (B/C), where A is the qualifying expenditure, B is the length of the part of the chargeable period falling within the writing down period, and C is the length of the writing down period.
• In practice, this produced an allowance of 15% per annum over the first six years and 10% in the seventh year, with a proportionate reduction applying where a chargeable period was shorter than twelve months.