Pollution control allowances

Farmers investing in new farm buildings for pollution control purposes should acquaint themselves with the special system of 'accelerated capital allowances' for income tax purposes, IFA Farm Business Committee chairman Brian Downey said this week.

He was concerned that farmers might not be aware of these allowances, which were negotiated by the IFA as improvements to the Pollution Control capital allowance system in the 2005 and 2006 Budgets.

The measures apply to investments in this area made up to 2008.

"The accelerated allowance means that qualifying expenditure in farm pollution control facilities can be written off against income tax over three years, and in any one year the lesser of €50,000 or 50% of qualifying income can be claimed.

"This one-year allowance can be treated as a 'floating allowance' to be taken in whole or in part at any time during the writing down period,'' Downey pointed out.