Vol. 544 No. 3
259 Mr. C. Lenihan asked the Minister for Finance his plans to introduce additional reliefs such as concessions on vehicle road tax for taxi drivers who were in possession of taxi plates for which they had paid substantial sums prior to the recent deregulation of the industry, as part of the transitional arrangements for the new regime; and if he will make a statement on the matter. [28721/01]
260 Mr. C. Lenihan asked the Minister for Finance his plans to introduce additional reliefs, such as capital tax write-offs for taxi drivers, who were in possession of taxi plates for which they had paid substantial sums prior to the recent deregulation of the industry, and who wish to introduce wheelchair accessible taxis as part of the transitional arrangements for the new regime; and if he will make a statement on the matter. [28722/01]
261 Mr. C. Lenihan asked the Minister for Finance the details of the arrangements for the drawing down by taxi drivers, who were in possession of taxi plates for which they had paid substantial sums prior to the recent deregulation of the industry, of the tax allowances made available to them as part of the transitional arrangements for the new regime; the period of years over which such allowances may be drawn down; the maximum allowances available in one year and in total; and if he will make a statement on the matter. [28723/01]
I propose to take Questions Nos. 259 to 261, inclusive, together.
As the Deputy may be aware, section 51 of the Finance Act, 2001, already provides a scheme of capital allowances for expenditure incurred on the cost of taxi licences acquired on or before 21 November 2000. For tax relief purposes the qualifying expenditure is deemed to have been incurred on 21 November 1997 where the licence was purchased prior to that date or, if later, the date the taxi trade commenced.
The capital allowances are available on the full cost of the taxi licence over a five year period, that is, at a rate of 20% per annum. The allowances for the tax year are deducted from the profits of the taxi trade for that year. Where the allowances exceed the profits in a year, the excess is carried forward to the following year or years. The value of any claim for allowances in any one year will depend on the cost of the licence, the individual's marginal rate of tax for the year in question and the amount of qualifying income liable to tax at that rate.
The section provides that the write-off will be allowed against the trading income of the licence owner who drives the associated taxi. The cost will not be allowed where the licence owner rents out the licence and associated vehicle to another person except where a spouse inherits a licence from his/her deceased spouse. In the latter case the deceased spouse must have acquired the licence on or before 21 November 2000 and he/she had carried on a taxi trade.
