Taxes Consolidation Act 1997 section 380P

Provisions supplementary to sections 380L to 3800

Section 380P sets out the exceptions to the capital allowance restrictions in Part 11C, disapplying the €24,000 cost limit and related restrictions in certain circumstances involving public hire vehicles and manufacturer testing.

• Vehicles provided wholly or mainly for hire to, or carriage of, members of the public in the ordinary course of trade — such as taxis and hackneys — are fully exempt from the Part 11C restrictions.
• Vehicles provided by a manufacturer solely for testing purposes are also exempt from the restricted cost rules, subject to a 5-year condition.
• If the manufacturer puts the vehicle to any substantial non-testing use within 5 years of it being provided, the exemption is withdrawn retrospectively and the Part 11C restrictions apply from the outset.
• Additional assessments may be raised or amended as necessary to give effect to these rules, including against the estate of a deceased person who would otherwise have been chargeable.

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