Revenue Note for Guidance

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Revenue Note for Guidance

PART 11

Capital Allowances and Expenses for Certain Road Vehicles

Overview

This Part restricts the amount of capital allowances available in respect of motor cars costing over a specified amount to the capital allowances appropriate to a car costing the specified amount (the amount of the specified amount varies according to when the expenditure on the car was incurred) (section 374).

The Part also includes provisions limiting the amount available for renewals allowances for cars (section 375) and restricting the deductions available for hire cars (section 377) and cars on hire-purchase (sections 378 and 379).

373 Interpretation (Part 11)

(1) The vehicles to which this Part applies are, essentially, ordinary motor cars. Excluded, therefore, are commercial type vehicles such as lorries, delivery vans, buses, etc.

(2) The restrictions in this Part apply only to motor cars which cost over a certain amount. This amount (referred to as “the specified amount”) varies depending on when the car was purchased or hired. The specified amount is —

  • for expenditure incurred in the period 16 May, 1973 to 28 January, 1976, €3,174.35
  • for expenditure incurred in the period 29 January, 1976 to 5 April, 1986, €4,444.08
  • for expenditure incurred in the period 6 April, 1986 to 27 January, 1988, €5,078.95
  • for expenditure incurred in the period 28 January, 1988 to 25 January, 1989, €7,618.43
  • for expenditure incurred in the period 26 January, 1989 to 29 January, 1992, €8,888.17
  • for expenditure incurred on a second-hand car in the period beginning on 30 January, 1992 and ending with an accounting period or basis period ending on or before 31 December, 2000, €12,697.38
  • for expenditure incurred in the period 30 January, 1992 to 26 January, 1994 in the case of a car which was first registered in the State without having been registered elsewhere, €12,697.38
  • for expenditure incurred in the period 27 January, 1994 to 8 February, 1995, in the case of a car which was not a used or second-hand car and which was first registered in the State without having been registered elsewhere, €16,506.60
  • for expenditure incurred in the period 9 February, 1995 to 22 January, 1997, in the case of a car which was not a used car or a second-hand car and which was first registered in the State without having been registered elsewhere, €17,776.33
  • for expenditure incurred in the period 23 January, 1997 to 2 December, 1997, in the case of a car which is not a used car or a second-hand car and which was first registered in the State without having been registered elsewhere, €19,046.07
  • for expenditure incurred in the period 3 December, 1997 to 1 December, 1998, in the case of a car which is not a used car or a second-hand car and which was first registered in the State without having been registered elsewhere, €19,680.94
  • for expenditure incurred in the period 2 December, 1998 to 30 November 1999, in the case of a car which is not a used car or a second-hand car and which was first registered in the State without having been registered elsewhere, €20,315.81
  • for expenditure incurred in the period beginning on 1 December 1999 and ending with an accounting period or basis period ending on or before 31 December 2000 in the case of a car which is not a used car or a second-hand car and which was first registered in the State without having been registered elsewhere, €20,950.68
  • for expenditure incurred in accounting periods or basis periods ending in the period 1 January 2001 to 31 December 2001, in the case of all cars (both new and second-hand), €21,585.55
  • for expenditure incurred in accounting periods or basis periods ending in the period 1 January 2002 to 31 December 2005, in the case of all cars (both new and second-hand), €22,000
  • for expenditure incurred on accounting periods or basis periods ending in the period 1 January 2006 to 31 December 2006, in the case of all cars (both new and second-hand), €23,000.
  • for expenditure incurred in accounting periods or basis periods from 1 January 2007 onwards, in the case of all cars (both new and second-hand), €24,000.

(3) This Part is to be construed as one with Part 9 (that is, the Part providing for relief for capital expenditure), but in section 375 (limit on renewals allowance for cars) the reference to “capital expenditure” is construed without regard to section 316(1). The effect of this is that the prohibition in that section on including as capital expenditure sums which are treated as revenue expenditure does not apply for the purposes of section 375.

Relevant Date: Finance Act 2020