Taxi drivers will be able to write-off the cost of a taxi licence over five years instead of the seven years initially proposed, according to the details of the Finance Bill Preliminary List. But there will be restrictions where one person owns more than one licence. The List sets out the conditions for capital allowances for existing taxi licence owners.

A full write-off over five years of the actual vouched cost of the licence backdated for three years to November 21st 1997 will be allowed. A licence owner who drives his own taxi will be able to write-off of the full capital cost of the licence against his trading income over a five-year period.

A licence owner who drives a vehicle and rents it out on a part-time basis will be able to set the licence cost off against his trading and his rental income.