658A. Farming: accelerated allowances for capital expenditure on slurry storage

(1) In this section—

“qualifying capital items” means the items specified in column (1) of the Table in Part 2 of Schedule 35A meeting the description specified in column (2) of that Table opposite the reference to those items in column (1);

“qualifying expenditure” means capital expenditure incurred during the relevant period on the provision or construction, as the case may be, of qualifying capital items;

“relevant period” means the period commencing on 1 January 2023 and ending on 30 June 2023;

“relevant regulation” means Article 7 of the European Union (Good Agricultural Practice for Protection of Waters) Regulations 2022 (S.I. No. 113 of 2022);

“relevant tax”, in relation to a person, means—

(a) where the person is a company, any corporation tax, and

(b) where the person is not a company, any contributions paid under the Social Welfare Consolidation Act 2005, income tax or universal social charge;

“Rescuing and Restructuring Guidelines” means the Communication from the Commission on Guidelines on State aid for rescuing and restructuring non-financial undertakings in difficulty¹;

‘undertaking in difficulty’ shall be construed in accordance with section 2.2 of the Rescuing and Restructuring Guidelines.

(2) Where a person incurs qualifying expenditure for the purpose of a trade of farming land occupied by that person, then, where for any chargeable period—

(a) a writing down allowance is to be made under section 658—

(i) subsection (2) of that section shall apply as if—

(I) the reference in paragraph (a) of that subsection to 7 years were a reference to 2 years, and

(II) the following were substituted for paragraph (b) of that subsection:

‘(b) The farm buildings allowance to be made under this subsection shall be 50 per cent of the capital expenditure referred to in paragraph (a).’,

and

(ii) subsection (12) of that section shall apply as if ‘Chapter 1 or 2 of Part 9’ were substituted for ‘Chapter 1 of Part 9’,

or

(b) a wear and tear allowance is to be made under section 284, subsection (2) of that section shall apply as if the reference in paragraph (ad) of that subsection to 12.5 per cent were a reference to 50 per cent.

(3) For the purposes only of determining, in relation to a claim for an allowance under section 658 as applied by subsection (2)(a), whether and to what extent capital expenditure incurred on qualifying capital items is incurred in the relevant period, only such an amount of that capital expenditure as is properly attributable to work on the construction of the qualifying capital items concerned actually carried out during that period shall (notwithstanding any other provision of the Tax Acts as to the time when any capital expenditure is or is to be treated as incurred) be treated as having been incurred in that period.

(4) Subsection (2) shall not apply where the person concerned—

(a) is, or is part of, an undertaking in difficulty,

(b) is subject to an outstanding recovery order following a previous decision of the Commission of the European Union that declared an aid illegal and incompatible with the internal market, or

(c) is, or is part of, an undertaking that is not a micro, small or medium-sized enterprise within the meaning of Commission Regulation (EU) No. 702/2014 of 25 June 2014².

(5) The aggregate amount of relief granted to a person under this section shall not exceed €500,000.

(6) This subsection applies to a person in respect of a chargeable period where the aggregate of the amount of the relief granted under this section to the person in that chargeable period and in previous chargeable periods is greater than €60,000.

(7) Notwithstanding section 851A, where subsection (6) applies to a person in respect of a chargeable period, the Revenue Commissioners may disclose the following information in respect of the year in which the chargeable period ends:

(a) the name of the person;

(b) the sector of activity at NACE group level, within the meaning of Regulation (EC) No. 1893/2006 of the European Parliament and of the Council of 20 December 2006³, as amended by Regulation (EC) No. 295/2008 of the European Parliament and of the Council of 11 March 2008⁴, Regulation (EU) No. 70/2012 of the European Parliament and of the Council of 18 January 2012⁵ and Regulation (EU) 2019/1243 of the European Parliament and of the Council of 20 June 2019⁶;

(c) the territorial unit, within the meaning of the NUTS Level 2 classification specified in Annex 1 to Regulation (EC) No. 1059/2003 of the European Parliament and of the Council of 26 May 2003⁷, as amended by Regulation (EC) No. 1888/2005 of the European Parliament and of the Council of 26 October 2005⁸, Commission Regulation (EC) No. 105/2007 of 1 February 2007⁹, Regulation (EC) No. 176/2008 of the European Parliament and of the Council of 20 February 2008¹⁰, Regulation (EC) No. 1137/2008 of the European Parliament and of the Council of 22 October 2008¹¹, Commission Regulation (EU) No. 31/2011 of 17 January 2011¹², Council Regulation (EU) No. 517/2013 of 13 May 2013¹³, Commission Regulation (EU) No. 1319/2013 of 9 December 2013¹⁴, Commission Regulation (EU) No. 868/2014 of 8 August 2014¹⁵, Commission Regulation (EU) No. 2016/2066 of 21 November 2016¹⁶, Regulation (EU) 2017/2391 of the European Parliament and of the Council of 12 December 2017¹⁷ and Commission Delegated Regulation (EU) 2019/1755 of 8 August 2019¹⁸, in which the person is located;

(d) the year in which the relief is granted.

(8) For the purposes of subsections (5) and (6), the amount of relief granted to a person in a chargeable period shall be the amount determined by the formula—

R = A – B

where—

R is the amount of the relief granted to the person in the chargeable period,

A is the amount of relevant tax that would be payable by the person for the chargeable period, but for subsection (2), and

B is the amount of relevant tax payable by the person for that chargeable period.