Glossary · Self-assessment
Capital allowances
Tax relief on equipment and vehicles, spread over eight years.
Instead of deducting the cost of equipment, machinery or a van at once, you claim 12.5% of it each year for eight years. Cars go by CO2 emissions. A low-emission car is written off on €24,000, even if it cost less. A middle one is written off on half its cost, at most €12,000. A high one gets nothing. The bands are tighter for cars bought from 1 January 2027.
Work it out
Related terms
Wear and tear allowance · Allowable expenses
Source: Revenue: Tax and Duty Manual Part 11-00-01
All terms · General information, not tax advice.