Budget 2011 - Capital Allowances

Energy-efficient equipment

The scheme of accelerated capital allowances for expenditure by companies on certain energy-efficient equipment bought for the purpose of a trade was introduced by Budget and Finance Act 2008 for a three year trial period which ends in 2011. The scheme is being extended for a further 3 years to the end of 2014 at an estimated cost of €2 million in a full year.

Special allowances for the mining industry

Capital expenditure on new machinery and plant for use in mining qualifies for a 20% investment allowance in addition to normal wear and tear allowances. An allowance of 20% of expenditure incurred on exploration is also available in addition to the 100% exploration allowance for such expenditure. These additional 20% allowances are being abolished in respect of expenditure incurred from 1 January 2011 in line with the recommendation in the 2009 Report of the Commission on Taxation.