Waterford TD John Deasy has been informed that farmers who wish to install CCTV to deter criminals targeting rural communities can avail of either of two tax reliefs.
The Fine Gael deputy had put down a Dáil question asking the Minister for Finance if consideration has been given to an incentive or clawback scheme for farmers seeking to put in cameras or similar security equipment.
Minister Paschal Donohoe told the Fine Gael deputy: “I am advised by Revenue that a farmer would be entitled to write off the cost of installing a CCTV system against her or his farming income as a CCTV system would qualify for capital allowances. The cost may be written off over eight years.”
He added that where a farmer does not have an entitlement to capital allowances (he or she may be retired and no longer trading for example), relief may be available under the Home Renovation Incentive scheme.
The HRI scheme provides income tax relief of 13.5% of the cost of certain repairs, renovations and improvements carried out on a person's main residence. The installation of security equipment (such as CCTV cameras) comes within the terms of the incentive.
It should be noted that, as relief under HRI is restricted to works carried out on a residence, the installation of a CCTV camera to protect an out-building, or other non-residential part of a farm, would not qualify.
“The relief is granted by way of a credit against income tax over the two years following the year in which the works are paid for. Half of the relief is given in each year,” John Deasy says.
The key features of the scheme are that works must be carried out by a tax compliant contractor, and prior to 31 December 2018. Also, Local Property Tax payments must be up to date in respect of the property; and the cost of the works must be greater than €4,405 and not more than €30,000 (both figures exclusive of VAT). The cost of multiple works by different contractors may be aggregated in a claim.
The Fine Gael deputy had put down a Dáil question asking the Minister for Finance if consideration has been given to an incentive or clawback scheme for farmers seeking to put in cameras or similar security equipment.
Minister Paschal Donohoe told the Fine Gael deputy: “I am advised by Revenue that a farmer would be entitled to write off the cost of installing a CCTV system against her or his farming income as a CCTV system would qualify for capital allowances. The cost may be written off over eight years.”
He added that where a farmer does not have an entitlement to capital allowances (he or she may be retired and no longer trading for example), relief may be available under the Home Renovation Incentive scheme.
The HRI scheme provides income tax relief of 13.5% of the cost of certain repairs, renovations and improvements carried out on a person's main residence. The installation of security equipment (such as CCTV cameras) comes within the terms of the incentive.
It should be noted that, as relief under HRI is restricted to works carried out on a residence, the installation of a CCTV camera to protect an out-building, or other non-residential part of a farm, would not qualify.
“The relief is granted by way of a credit against income tax over the two years following the year in which the works are paid for. Half of the relief is given in each year,” John Deasy says.
The key features of the scheme are that works must be carried out by a tax compliant contractor, and prior to 31 December 2018. Also, Local Property Tax payments must be up to date in respect of the property; and the cost of the works must be greater than €4,405 and not more than €30,000 (both figures exclusive of VAT). The cost of multiple works by different contractors may be aggregated in a claim.