Taxes Consolidation Act 1997 section 375

Limit on renewals allowance for cars

Section 375 caps the amount of capital expenditure on a car that can be taken into account when calculating the renewals allowance, with any excess over the specified amount being disregarded.

• The cost of a car is treated as not exceeding the specified amount when computing the renewals allowance.
• Any capital expenditure above the specified amount is ignored for the purposes of the deduction.
• The restriction applies to deductions from Schedule D profits, Schedule E emoluments, and management expense claims under section 83 (including as applied by section 707).
• When the car is replaced, the value or sale proceeds of the old car are scaled down in the same proportion that the specified amount bears to its original cost.