Accelerated capital allowances

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vandriver

Registered User
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I have started a new career as a taxi driver.
At the moment,I'm renting a taxi, but will be looking to purchase my own taxi.
My question is about accelerated capital allowance of 40% that is allowed on the purchase of a taxi .
My tax year runs to Dec 31st,so if I buy a car on say Dec 1st for say €20,000 do I get €8k allowance for this year,or is there some apportionment rule?(ie do I only qualify for 1/12th of the allowance in the first year?)
Also,does it matter at all if the item is new or second hand?
 
You get full capital allowances for the year once the taxi is in use at the end of the year.

The only reason you would need to apportion the capital allowances is in the commencement or cessation year; for the proportion of the year that you were trading.
 
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