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Taxes Consolidation Act, 1997 (Number 39 of 1997)


664A Relief for increase in carbon tax on farm diesel.

(1) In this section—

accounting period”, in relation to a person, means—

(a) where the person is a company, an accounting period determined in accordance with section 27, or

(b) where the person is not a company, a period of one year ending on the date to which the accounts of the person are usually made up,

but, where accounts have not been made up or where accounts have been made up for a greater or lesser period than one year, the accounting period shall be such period not exceeding one year as the Revenue Commissioners may determine;

carbon tax” means the carbon charge referred to in section 96(1A) (inserted by section 64(1)(f) of the Finance Act 2010) of the Finance Act 1999;

farm diesel” means the mineral oil described as ‘other heavy oil’ in Schedule 2A to the Finance Act 1999 used by a person in the carrying on of a trade of farming, but does not include such oil used for the purpose of home heating;

relevant carbon tax” means an amount equivalent to the amount determined by the formula—

A – B


A is the amount of the carbon tax included in a deduction in respect of farm diesel in the computation by a person of the amount of the profits or gains of that person to be charged to tax under Case I of Schedule D, and

B is the amount of the carbon tax that would have been included in that deduction if the amount of the carbon tax had been calculated at the rate of €41.30 per 1,000 litres of farm diesel.

(2) Where—

(a) a person carries on in an accounting period a trade of farming in respect of which the person is within the charge to tax under Case I of Schedule D, and

(b) in the computation of the amount of the profits or gains of that trade the person is, apart from this section, entitled to any deduction on account of farm diesel,

then such person shall be entitled in that computation to a further deduction for farm diesel of an amount equal to the relevant carbon tax.



Inserted by FA12 s20(a). Deemed to have come into force and takes effect on and from 1 January 2012.