Capital allowances let you write off the cost of business assets against your taxable profits over time. For landlords, the key allowance is wear and tear on furniture and fittings. For businesses, it covers plant, machinery, vehicles, and equipment.
Under Section 284 TCA 1997, landlords can claim 12.5% per year over 8 years on the cost of furniture, fittings, and appliances provided in a rental property. After 8 years, the cost is fully written off.
The standard rate is also 12.5% per year over 8 years for plant and machinery. This covers computers, office equipment, tools, and other business assets. Vehicles used for business are subject to a capital allowance cap based on the vehicle's CO2 emissions category.
Certain energy-efficient equipment qualifies for 100% first-year capital allowances under the Accelerated Capital Allowances scheme. The equipment must be on the SEAI's Triple E Register. This can be valuable for businesses investing in energy-efficient plant.
Our tax reports include full capital allowances calculations for landlords and the self-employed.
Self-Employed Report - EUR 49When you purchase furniture, fittings, or appliances for a rental property, you cannot deduct the full cost in the year of purchase. Instead, you claim 12.5% of the cost each year for 8 years under Section 284 TCA 1997. After 8 years, the asset is fully written off and no further allowance can be claimed on it.
For example, if you furnish a rental apartment with EUR 8,000 worth of furniture in 2026, you claim EUR 1,000 per year for 8 years (2026 to 2033). Each EUR 1,000 claim reduces your taxable rental income, saving you tax at your marginal rate.
Certain energy-efficient equipment qualifies for 100% first-year capital allowances under the Accelerated Capital Allowances scheme. The equipment must be on the SEAI's Triple E Register (covering categories like lighting, heating, motors, and building energy management systems). This allows you to write off the full cost in year one rather than spreading it over 8 years.
Capital allowances on motor vehicles are subject to a cap based on the vehicle's CO2 emissions category. The cap ranges from EUR 24,000 for the lowest emission vehicles to nil for the highest. Electric vehicles generally fall in the most favourable category. The allowance is calculated at 12.5% per year on the lower of the cost or the cap, for the business proportion of use only.
Disclaimer: This information reflects the 2026 tax year. Tax rules change annually following the Budget. Check Revenue.ie for the latest rates and thresholds. This guide is for informational purposes only and does not constitute tax advice.