Capital allowances & working capital
Capital allowances (tax depreciation on plant, cars, buildings and energy-efficient equipment) and working capital (a liquidity snapshot) in one place, tax figures current as of October 2026.
Machinery, equipment, fixtures and fittings, plus commercial vehicles (vans, trucks, tractors), written off at 12.5% a year over 8 years.
Capital cost of the qualifying asset.
Not included
One asset, the standard write-off. Balancing allowances or charges on disposal, private-use restrictions, leasing rules and scheme-specific building reliefs can each change the position: that’s a conversation, not a slider.
Annual allowance
Plant & machinery€0.00
12.5% a year for 8 years · €0.00 written off in total
- Cost
- €0.00
- Annual allowance€0.00 × 12.5%
- €0.00
- Written off over
- 8 years
- Total allowances
- €0.00
- Tax saving at 12.5%cash value over the write-off period
- €0.00
This is an indicative estimate only, not tax advice. Figures are general and may not reflect reliefs, exemptions or your specific circumstances. Confirm any figure with a qualified adviser or revenue.ie before acting on it.
Rates current as of October 2026. Source: revenue.ie
Rates by asset
Plant & machinery: 12.5% a year over 8 years. Industrial buildings: 4% over 25 years. Energy-efficient equipment on the SEAI Triple-E register: 100% in year one (accelerated), extended to 31 December 2030.
Cars are capped
Car allowances are limited to €24,000 and restricted by CO2: full relief up to 155 g/km, 50% from 156 to 190 g/km, and none above 190 g/km. The emissions bands change again on 1 January 2027.
The cash value
Allowances reduce taxable profit, so the cash saving is the allowance times your tax rate, shown here at the 12.5% trading rate. Disposals can trigger a balancing allowance or charge later.
Budget 2027 extends the accelerated allowances on farm safety equipment to the end of 2029 and adds 12 items. Announced in Budget 2027, subject to the Finance Bill (checked 29 October 2026). See what Budget 2027 changes for you →
Content reviewed by Arif Bhuiyan, FCA, ACA, MBA, MSc, and a group of Ireland-based finance professionals who want to make financial literacy easier for people in Ireland.
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