S.L. 123.7 ст. 3Deductions in respect of vehicles.

(1) Where any vehicle to which this rule applies was acquired at a cost exceeding €14,000 in a year immediately preceding any year of assessment and such vehicle is used and employed in the production of the income, any deduction in respect of wear and tear and any initial deduction with respect to the vehicle under the provisions of article 14(1)(f) and (j) of the Act and any allowance due or charge made with respect to the vehicle under the provisions of article 24 of the Act shall be computed as if the cost of acquisition were €14,000.

(2) Where any vehicle to which this rule applies is leased to a person in a year immediately preceding any year of assessment commencing on or after the 1st January, 2002 and such vehicle is used and employed in the production of that person’s income, and where the listed price of that vehicle exceeds €14,000, any deduction that may be claimed by that person under the provisions of article 14(1) of the Act in respect of payments made for the lease of that vehicle shall not exceed the result obtained by multiplying the said lease payments by €14,000 and dividing the result by the listed price of that vehicle: Provided that -

(a) where the vehicle is used in terms of an arrangement whereby the burden of wear and tear is on the lessee, no deduction shall be allowable in respect of the lease payments;

(b) the provisions of this subrule (2) shall not apply where the vehicle is used by the said person, or on his behalf, on an occasional basis for a period of less than seven days during the year in question otherwise than as a replacement for another vehicle leased to him;

(c) where a leased vehicle is temporarily replaced by another vehicle for a period of less than thirty consecutive days without any change in the amount of lease payments, this subrule (2) shall apply during the period of replacement as if the reference to the listed price of the vehicle were a referenee to the listed price of the first-mentioned vehicle, but when a change in the amount of lease payments is made on account of such replacement or where the period of replacement is thirty consecutive days or more, this subrule (2) shall apply during the said period by reference to the listed price of the second-mentioned vehicle.

(3) For the purpose of subrule (2) -

(a) the listed price of a vehicle is the price shown for a vehicle of that same or comparable make and model in a price list drawn up or approved by the Commissioner for the purposes of the Fringe Benefits Rules increased by the cost of any optional accessories that may be fitted in the vehicle;

(b) a vehicle shall be deemed to be leased to a person if it is used by him or on his behalf under any arrangement whereby a payment is made or due to another person as consideration for the said use;

(c) "lease payments" means the total of the payments made or due by a person during the year in question as consideration for the use of a vehicle and any other costs that may be incurred or reimbursed by him in the said year in connection with the said use, including insurance, licences, repairs and servicing, but excluding fuel and garaging.

(4) This rule applies to any mechanically propelled vehicle constructed or adapted as a means of transport for individuals, but shall not apply to a vehicle of a type not commonly used as a private vehicle and unsuitable to be so used, or to a vehicle used by the person claiming a deduction referred to in this rule wholly or mainly for the purpose of hire to or the carriage of members of the public in the ordinary course of his trade or business: Provided that for any year of assessment commencing on or after the 1st January, 2002 this rule shall, moreover, not apply to a vehicle used by the person claiming a deduction referred to in this rule wholly or mainly for driving instruction in the ordinary course of his trade or business.