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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 July 2026.

Tax depreciation. Capital allowances write the cost of a qualifying asset off against taxable profits over a set life. Pick the asset and the rate, period and any cap are applied for you.

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 July 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 156–190 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.

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