Taxes Consolidation Act 1997 section 286A

Wear and tear allowances for licences for public hire vehicles

Section 286A provides for wear and tear allowances on certain taxi licences acquired on or before 21 November 2000.

• Applies to taxi or wheelchair accessible taxi licences acquired (or inherited) on or before 21 November 2000, with expenditure deemed incurred on 21 November 1997 or, if later, when the trade commenced.
• Treats the licence as plant and machinery, allowing a 20% straight-line allowance over 5 years.
• Allows relief where the taxi is partly let, but restricts relief to one licence where multiple licences are involved.
• Contains special rules for inherited licences and restricts losses from the allowance to letting income only.

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