Got myself in a muddle over this one and hoping someone would lend a hand.
Client (sole trader) bought a car and claims expenses for business usage (80%). Car is low CO2, so 100% capital allowance involved.
New financial year, and thinking of not using it for business purposes anymore, ie all private usage.
In HMRC's eyes, the client owns the car, so would you just not make any further claims for it? Or is there a deemed disposal to heself and a capital profit (80%) exist.
Also what if the client purchases a new car but still has the old car?
Any assistance would be much appreciated.
Thanks in advance