{"id":934,"date":"2025-07-30T15:09:18","date_gmt":"2025-07-30T15:09:18","guid":{"rendered":"https:\/\/leyton.majjane.agency\/ie\/insights\/articles\/understanding-irelands-latest-capital-allowances-statistics\/"},"modified":"2026-08-20T13:03:11","modified_gmt":"2026-08-20T11:03:11","slug":"understanding-irelands-latest-capital-allowances-statistics","status":"publish","type":"article","link":"https:\/\/leyton.com\/ie\/insights\/articles\/understanding-irelands-latest-capital-allowances-statistics\/","title":{"rendered":"Understanding Ireland\u2019s latest Capital Allowances statistics"},"content":{"rendered":"\n\n\n\n\n

Capital Allowances let businesses offset certain capital expenditure against their profits. It\u2019s a valuable and popular form of tax relief, with newly published statistics from Revenue showing that the value of Capital Allowances claimed in Ireland during 2023 was \u20ac192 billion.<\/p>\n\n\n\n

The figures come from the Revenue\u2019s annual Corporation Tax 2024 Payments and 2023 Returns<\/a> analysis, which paint a picture of how companies in Ireland, particularly multinationals, are using the relief scheme.<\/p>\n\n\n\n

In this article, we highlight details from some of the key areas in Revenue\u2019s analysis.<\/p>\n\n\n\n

What is the Corporation Tax 2024 Payments and 2023 Returns analysis?<\/h2>\n\n\n\n

Revenue publishes an Annual Report<\/a>, along with supporting research and statistical papers, including the Corporation Tax 2024 Payments and 2023 Returns<\/a> analysis. As well as breaking down tax receipts, the analysis includes useful insights on how companies are taking advantage of tax incentives like Capital Allowances<\/a> and R&D Tax Credits<\/a>.<\/p>\n\n\n\n

You can find out more by reading our article on Irish R&D Tax Credit Statistics<\/a>.<\/p>\n\n\n\n

What can the Capital Allowances statistics tell us about the Irish economy?<\/h2>\n\n\n\n

Capital Allowances claims are a record of business investment in Ireland (indeed, Capital Allowances are designed to incentivise both domestic and foreign investment). 

Therefore, by looking at the statistics, we\u2019re able to get an insight into the health of business activity. The greater the investment, the more likely it is that confidence is high, which bodes well for the overall growth and prosperity of the Irish economy.<\/p>\n\n\n\n

What do Revenue\u2019s statistics tell us about the take-up of Capital Allowances in Ireland?<\/h2>\n\n\n\n

Revenue\u2019s statistics focus on the biggest categories for claiming Capital Allowances in Ireland: intangible assets, plant and machinery, and industrial buildings.<\/p>\n\n\n\n

In total, \u20ac192 billion in Capital Allowances were claimed in 2023 from 96,246 Corporation Tax returns. \u20ac43bn was claimed as plant and machinery and \u20ac147bn as intangible assets.<\/p>\n\n\n\n

The amount claimed for plant and machinery actually fell by 9% year-on-year, while the value of intangible asset claims broadly remained the same. \u201cOther\u201d Capital Allowances claims fell by 15%, with the only rise coming from industrial buildings claims, which rose by 16%.<\/p>\n\n\n\n\n \n \n \n \n \n \n \n \n
Capital Allowances asset type claimed<\/th>\n 2019 (\u20acm)<\/th>\n 2020 (\u20acm)<\/th>\n 2021 (\u20acm)<\/th>\n 2022 (\u20acm)<\/th>\n 2023 (\u20acm)<\/th>\n <\/tr>\n <\/thead>\n
Plant and machinery<\/td>\n 38,580<\/td>\n 49,867<\/td>\n 40,961<\/td>\n 47,465<\/td>\n 43,408<\/td>\n <\/tr>\n
Intangible assets*<\/td>\n 46,208<\/td>\n 94,237<\/td>\n 131,324<\/td>\n 147,054<\/td>\n 147,567<\/td>\n <\/tr>\n
Industrial buildings<\/td>\n 594<\/td>\n 644<\/td>\n 718<\/td>\n 806<\/td>\n 935<\/td>\n <\/tr>\n
Other<\/td>\n 235<\/td>\n 204<\/td>\n 232<\/td>\n 281<\/td>\n 239<\/td>\n <\/tr>\n
Total<\/td>\n 85,617<\/td>\n 144,952<\/td>\n 173,235<\/td>\n 195,606<\/td>\n 192,149<\/td>\n <\/tr>\n <\/tbody>\n<\/table>\n\n\n\n\n\n\n\n

*Note: For intangible assets, the level of deduction can\u2019t exceed 80% of trading income of the relevant trade for the accounting period. Any excess amounts can be carried forward and added to allowances available for offset against the trading income of the relevant trade for the next accounting period, and this can carry on for each succeeding accounting period.In 2023, the total value for intangible assets before the restrictions was \u20ac147 billion, while \u20ac102 billion in unused allowances from 2023 is available to be carried forward into 2024.<\/em><\/p>\n\n\n\n

If we focus on the two largest types of assets, \u201cplant and machinery\u201d and \u201cintangible assets\u201d, it\u2019s clear that growth in the amount of Capital Allowances claimed stagnated in 2023. While growth in intangible assets allowances grew consistently between 2019 and 2022 (and slightly in 2023), growth in plant and machinery allowances has very much been up and down across the years.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Why has the amount of Capital Allowances claimed fallen in 2023?<\/h2>\n\n\n\n

Ireland\u2019s economy has been praised by the OECD<\/a> and many others for its \u201crobust\u201d strength, partly because it is such an attractive place for multinationals to do business. But 2023 saw a decline in growth with figures from the Central Statistics Office<\/a> showing that GDP fell by 5.5%, which was due to a contraction in multinational-dominated sectors. This volatility potentially helps to explain the overall fall in the amount of Capital Allowances claimed for 2023.<\/p>\n\n\n\n

Are most capital allowances claimed by foreign owned multinationals?<\/h2>\n\n\n\n

Foreign owned multinationals are huge beneficiaries of the Capital Allowances scheme (which is one of many reasons as to why Ireland is seen as an attractive location for businesses to locate their operations). As the table below shows, as much as 91% of intangible assets and 81% of plant machinery were claimed by foreign owned multinationals.<\/p>\n\n\n\n\n \n \n \n \n \n
Capital Allowances asset type claimed (2023)<\/th>\n Foreign owned multinational<\/th>\n Irish owned multinational<\/th>\n Non multinational<\/th>\n <\/tr>\n <\/thead>\n
Intangible assets<\/td>\n 91%<\/td>\n 8%<\/td>\n 1%<\/td>\n <\/tr>\n
Plant and machinery<\/td>\n 81%<\/td>\n 5%<\/td>\n 14%<\/td>\n <\/tr>\n <\/tbody>\n<\/table>\n\n\n\n

Which sectors claim the most Capital Allowances?<\/h2>\n\n\n\n

Revenue\u2019s analysis helpfully breaks down Capital Allowances claims by sector, showing that the \u201cadministrative and support services\u201d sector (of which a significant proportion was aircraft leasing), was the largest claimant of allowances for plant and machinery in 2023 at \u20ac21 billion, and the \u201cmanufacturing\u201d and \u201cinformation & communication sectors were the largest claimants of allowances for intangible assets, each claiming \u20ac43 billion.<\/p>\n\n\n\n\n \n \n \n \n \n \n \n \n \n \n \n \n
Capital Allowances asset type claimed<\/th>\n Plant and machinery (\u00a3m)<\/th>\n Intangible assets (\u00a3m)<\/th>\n Industrial buildings (\u00a3m)<\/th>\n Other (\u00a3m)<\/th>\n <\/tr>\n <\/thead>\n
Administrative & support services<\/td>\n 21,008<\/td>\n 9,400<\/td>\n 2<\/td>\n 51<\/td>\n <\/tr>\n
Information & communication<\/td>\n 8,107<\/td>\n 43,561<\/td>\n 3<\/td>\n 12<\/td>\n <\/tr>\n
Manufacturing<\/td>\n 4,903<\/td>\n 43,053<\/td>\n 556<\/td>\n 17<\/td>\n <\/tr>\n
Financial & insurance<\/td>\n 2,590<\/td>\n 5,497<\/td>\n 2<\/td>\n 14<\/td>\n <\/tr>\n
Wholesale & retail trade<\/td>\n 2,131<\/td>\n 17,844<\/td>\n 55<\/td>\n 31<\/td>\n <\/tr>\n
Construction<\/td>\n 652<\/td>\n 0<\/td>\n 6<\/td>\n 16<\/td>\n <\/tr>\n
Transportation & storage<\/td>\n 585<\/td>\n 1,785<\/td>\n 125<\/td>\n 13<\/td>\n <\/tr>\n
All other sectors<\/td>\n 3,432<\/td>\n 26,426<\/td>\n 186<\/td>\n 85<\/td>\n <\/tr>\n
Total<\/td>\n 43,408<\/td>\n 147,566<\/td>\n 935<\/td>\n 239<\/td>\n <\/tr>\n <\/tbody>\n<\/table>\n\n\n\n

Can you help my business claim Capital Allowances?<\/h2>\n\n\n\n

Yes! If anything, the latest figures from Revenue reemphasise the importance of speaking to the experts during volatile economic times.<\/p>\n\n\n\n

Many businesses underestimate how much they\u2019re able to claim, missing out on valuable tax relief. Our highly-qualified Capital Allowances<\/a> team have a diverse range of specialisms, with years of experience working in construction, surveying, accounting and tax advisory. This means they\u2019re able to dig into the details, identify all qualifying expenditures, and maximise your claim.<\/p>\n\n\n\n

Get in touch<\/a> to find out how they can help you.<\/p>\n\n\n\n

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