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Are capital allowances allowed on personal use goods

Close limited company buys a motor vehicle and the motor is given to the son, who is an employee, to drive.

No problem - P11d and son pays for all his own petrol.

Son leaves the company part way during the year and is allowed to keep driving the car.

Is the company allowed to claim a capital allowance once the son leaves the company? Or do they claim a capital allowance for the pro-rata period that the son is employed in the business? 


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26th Apr 2012 11:29

Benefit in kind for the father?

Presuming the father is the director, it seems to me that there is a benefit in kind returnable for the father after the son leaves the company.  That's on the basis that the car is provided to a member of his family by virtue of his directorship.

Capital allwances for the company no problem.

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26th Apr 2012 12:04

Thanks for the reply


We know that tax is payable on a company car if it is available for private use by an employee, company director or their family or household.

But wasn't 100% sure who would receive the p11d - the father or the son?


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