Self-employed

Capital allowances (claiming a van, laptop or car over several years)

Last updated 16 October 2026

Equipment and vehicles are claimed at 12.5% of cost a year over eight years. Low-emission cars are written off on €24,000 even if they cost less; others get half the cost, at most €12,000, or nothing. New bands from 2027.

You can't deduct the full cost of equipment or a vehicle in the year you buy it. Instead you claim a capital allowance, called wear and tear: 12.5% of the cost each year for eight years.

A €32,000 van

Allowance each year for eight years	€4,000.00
Total over eight years	€32,000.00

Cars

Cars are treated differently. What you write off depends on the car's CO2 emissions, not only on what it cost:

Low emissions: written off on €24,000, whatever the car cost, even if it cost less.
Middle emissions: written off on half the cost, at most €12,000.
High emissions: nothing.
The limits depend on when the car was bought.
Cars bought 1 July 2008 to 2020: low up to 155g/km, middle 156–190g/km, high over 190g/km.
Cars bought 2021 to 2026: low up to 140g/km, middle 141–155g/km, high over 155g/km.
Cars bought from 2027: low up to 120g/km, middle 121–140g/km, high over 140g/km.
If you also use the car privately, only the business share is allowed.

A €15,000 car at 120g/km, bought in 2024 and used only for business, gets €3,000.00 a year. That's €24,000 times 12.5%, even though it cost less.

A €40,000 car at 150g/km, bought in 2025 and used 60% for business, gets €900.00 a year. That's half its cost, at most €12,000, times 60%, times 12.5%.

Vans and other vehicles not normally used as private cars don't have these limits. Electric cars may qualify for accelerated allowances instead.

Work it out

Sole trader tax return →

Sources

General information, not tax advice. HeyPenny is not a tax agent.