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Amendment of section 659 (farming: allowance for capital expenditure on the construction of farm buildings, etc. for control of pollution) of Principal Act.
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60.—Section 659 of the Principal Act is amended—
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(a) in paragraph (c) of subsection (1) by the substitution of “6 April 2003” for “the 6th day of April, 2000,”, and
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(b) (i) by the substitution of the following for subsection (2):
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“(2) (a) Subject to the provisions of Article 6 of Council Regulation (EEC) No. 2328/91 of 15 July 19911
, on improving the efficiency of agricultural structures, as amended, and subject to subsections (3) and (3A), where a person to whom this section applies—
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(i) has delivered to the Department of Agriculture, Food and Rural Development a farm nutrient management plan referred to in subsection (1)(b), and
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(ii) incurs capital expenditure to which subsection (1) applies,
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there shall be made to such person during the writing-down periods, specified in paragraph (b), writing-down allowances (in this section referred to as ‘farm pollution control allowances’) in respect of that expenditure and such allowances shall be made in taxing the trade.
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(b) The writing-down periods referred to in paragraph (a) shall be—
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(i) 8 years beginning with the chargeable period related to the capital expenditure, where that expenditure is incurred before 6 April 2000; or
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(ii) 7 years beginning with the chargeable period related to the capital expenditure, where that expenditure is incurred on or after 6 April 2000,”,
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(ii) in subsection (3) by the substitution of the following paragraph for paragraph (a):
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“(a) as respects the first year of the writing-down period referred to in subsection (2)(b)(i), where the capital expenditure was incurred—
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(i) before 6 April 1998, an amount equal to 50 per cent of that expenditure or £10,000, whichever is the lesser,
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(ii) on or after 6 April 1998 and before 6 April 2000, an amount equal to 50 per cent of that expenditure or £15,000, whichever is the lesser,”,
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and
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(iii) by the insertion of the following subsections after subsection (3):
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“(3A) The farm pollution control allowances to be made in accordance with subsection (2) during the writing-down period referred to in subsection (2)(b)(ii), in respect of capital expenditure incurred in a chargeable period, where that expenditure is incurred on or after 6 April 2000 shall, subject to subsection (3B), be an amount equal to—
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(a) 15 per cent of that expenditure incurred for each of the first 6 years of the writing-down period, and
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(b) 10 per cent of that expenditure for the last year of the writing-down period.
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(3B) (a) In this subsection—
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‘residual amount’, in relation to capital expenditure incurred in a chargeable period, means an amount equal to 50 per cent of that expenditure or £25,000 whichever is the lesser;
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‘specified amount’, in relation to capital expenditure incurred in a chargeable period, means the balance of that expenditure after deducting the residual amount;
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‘specified return date for the chargeable period’ has the same meaning as in section 950.
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(b) Notwithstanding subsection (3A), where farm pollution control allowances are to be made to a person in accordance with that subsection during the writing-down period referred to in subsection (2)(b)(ii), such person may elect to have those allowances made in accordance with this subsection and, where such person so elects, the allowances shall be made in accordance with this subsection only.
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(c) Where paragraph (b) applies to a person, the farm pollution control allowances to be made to such person during the writing-down period referred to in subsection (2)(b)(ii) shall be an amount equal to—
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(i) 15 per cent of the specified amount for each of the first 6 years of the writing-down period, and
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(ii) 10 per cent of the specified amount for the last year of the writing-down period, and
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(iii) subject to paragraph (d), the whole or any part of the residual amount, as is specified by the person to whom the allowances are to be made, in any year of the writing-down period.
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(d) The allowances to be made in accordance with subparagraphs (i) and (iii) of paragraph (c) or subparagraphs (ii) and (iii) of that paragraph, as the case may be, for any year of the writing-down period, shall not in the aggregate exceed the residual amount.
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(3C) (a) An election by a person to whom this section applies in relation to the farm pollution control allowances claimed in subsection (3B) shall be made in writing on or before the specified return date for the chargeable period in which the expenditure is incurred and shall be included in the annual statement required to be delivered under the Income Tax Acts of the profits or gains from farming as set out in subsection (5).
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(b) An election made under the provisions of paragraph (a) cannot be altered or varied during the writing-down period to which it refers.”.
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1 O.J. No. L218, 6.8.1991, p.1 |
