Article By Michelle Cowley

Excellent Gains in Store for Employers! Accelerated Capital Allowances (ACA) on EVs 2018!

Time for some Windsor Hints & Tips today! Today’s topic is all about how purchasing Electric Vehicles for your business can give rise to Accelerated Capital Allowances gain for your business!

Capital Allowances refer to taxing incentives on items of capital expenditure. Capital expenditure is money that a company spends on buying or maintaining tangible assets such as land, buildings or equipment (www.revenue.ie).

The good news is that Accelerated Capital Allowances (ACAs) are available on all New Nissan 100% EV’s purchased in Ireland by a Limited Company LTD or a Sole Trader (www.budget.gov.ie).

Here Windsor summarises the top 5 ACA points you need to consider when providing your employee with an Electric Vehicle (EV) from our Nissan range from 1 January 2018 (Nissan Academy Report):


Top 5 Points to Consider:

1. The first advantage is that a company who purchases an EV for their business have a choice to claim €24,000 against trading profits in the year of purchase or claim a lower purchase price.

2. The second major advantage is that a company who purchases an EV for their business will accomplish a Full Capital Allowance Tax in one year equivalent to 8 years capital allowance tax savings that they would have achieved on purchasing a conventional vehicle for their company!

3. The implicative advantage in cash savings on this tax liability is that it will facilitate cash flow.

4. Moreover, charge stations are also eligible for ACA of €1,500 in the year.

5. And, if you are a sole trader the savings when purchasing a Nissan LEAF rather than a conventional vehicle are multi-beneficial. A sole trader will save more on PAYE, PRSI and USC when purchasing a Nissan LEAF than a conventional vehicle (upto €10,920 Nissan LEAF v C-Segment equivalent vehicle in fact)!

As you can see, it is worth considering an EV purchase from 1 January 2018. If you have more questions about how you or your company can gain from providing an electric vehicle to employees next year, then do visit Windsor Nissan today. Or make an enquiry by contacting us online:


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N.B. *Those who CANNOT claim these ACA benefits are:

Motor Distributors, Motor Dealers, Car Hire Companies, Lease & Hire arrangements. The EV must be owned by the business to make the business eligible for such savings.


(Photo credit: Pixabay.com)