Taxes Consolidation Act 1997 section 286

Increased wear and tear allowances for taxis and cars for short-term hire

Section 286 provides for accelerated capital allowances for taxis and short-term hire cars used in a trade.

• A 40% annual wear and tear allowance on a reducing balance basis applies to qualifying taxis and short-term hire cars.
• To qualify, the vehicle must be a passenger car used at least 75% of the time for taxi work or short-term public hire.
• Short-term hire means hire for no more than 8 continuous weeks, with connected or repeat hires aggregated.
• The relief applies to the trader operating the taxi or car hire business and is not available to leasing businesses.

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