I am advised by Revenue that the cost to the Exchequer associated with the measure suggested would depend on the amount of expenditure over the years in question and the extent to which the claimants are able to use the additional relief in each year.
On the basis of certain assumptions regarding potential expenditure, the cost to the Exchequer associated with an eight year capital allowance regime, with up to 50 per cent allowable in a year, for claims for plant and machinery and buildings by farmers, could be up to €40 million for the first year of claim, rising to €66 million in the second and third years, before the cost starts reducing.
On the same basis the cost to the Exchequer associated with a three year write off period, with up to 50 per cent allowable in a year, could be €40 million in the first year of claim, rising to €83 million in the second year, €118 million in the third year and fourth years, before the cost starts to reduce.