Corporate buyers

Purchasing art and capital tax allowances in Ireland

The Plants we played with by Yanny Petters - Olivier Cornet Gallery
In Ireland, art buyers can allow the purchase cost of artwork against tax, provided that the artwork is placed in their place of business where the public can view it. Suitable sites are reception areas, common access meeting rooms and canteens. The establishment of an art collection is a very ‘tax-effective’ acquisition for a company as the annual ‘wear and tear allowance’ on this capital expenditure is, at the time of writing, 12.5% per annum and, consequently, most of the purchase price can be recovered.
 
Wear & Tear - Legislation S284 TCA 1997 states:
 
Section 1
 
A trader who incurs capital expenditure on machinery or plant is entitled to a wear and tear allowance if the asset is in use for the purpose of his trade at the end of the basic period for the tax year.
 
Section 2
 
The annual wear and tear allowance is 12.5% on a straight line basis. Where a corporate or individual tax payer buys a work of art and displays it at their business premises for the purpose of promoting their business, the work of art is treated as machinery or plant, and is eligible for the annual wear and tear allowance of 12.5%.

We would advise you to consult your accountant regarding any art related investment you would like to make and any necessary approval by the Revenue Commissioners.

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