380M Limit on deductions, etc., for hiring cars

This section provides for the allowable expenses arising from leasing a car. Where the lease was entered into before 1 January 2027 and first payment under that lease was made prior to that date, the provisions of this section as amended in Finance Acts 2019 and 2020 continue to apply:

• where the car is in category A or B then the lease amount is increased or reduced in the proportion which €24,000 (the specified amount) bears to the price of the car,
• where the car is in category C and costs less than the specified amount, the deduction is reduced by half and where greater than the specified amount, is reduced in the proportion which half the specified amount bears to the new price, and
• where the car is in category D, E or F, nil.

Where the lease was entered into after 1 January 2027 (or where the first payment under that lease was made after that date) then the provisions of this section as amended in Finance Act 2024 will apply:

• where the car is in category A then the lease amount is increased or reduced in the proportion which €24,000 (the specified amount) bears to the price of the car,
• where the car is in category B and costs less than the specified amount, the deduction is reduced by half and where greater than the specified amount, is reduced in the proportion which half the specified amount bears to the new price, and
• where the car is in category C, D, E or F, nil.

Relevant Date: Finance Act 2024