In Ireland, an art buyer can allow the purchase cost of artwork against tax, provided that the artwork is placed in his/her place of business where the public can view it. Suitable sites are reception areas, common access meeting rooms and canteens. The establishment of a company art collection is a very ‘tax-effective’ acquisition 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%.


Your accountant should be consulted regarding any intended art related investments and any necessary  approval by the Revenue Commissioners.