Bourne v Auto School of Motoring (Norwich) Ltd

Bourne v Auto School of Motoring (Norwich) Ltd

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Hello,

My understanding is that a driving instructor, regardless of trading structure, can treat his instructional vehicle as plant and machinery for the purposes of capital allowances. Therefore crucially a 50% FYA is available for claim on the purchase of such vehicles? So long as the vehicle has been modified to the extent of having dual controls fitted, then I can see no reason for non treatment as plant and machinery?

Been debating this point with a colleague and I can’t see that treating such vehicles as plant and machinery shall prove too contentious with HMRC?

If however the instructor’s private use of the vehicle is more than incidental then does this weaken or preclude the ability to treat as plant and machinery and claim FYA?

Appreciate your thoughts on this.

Alan.

Alan Franks

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By Paul Soper
08th Oct 2007 23:39

No
Case is still valid, if fitted with dual controls it is NOT a PMV and so 50% FYA etc can be claimed but... private use will still restrict the entitlement to allowances pro-rata - you just scale down the FYA accordingly. Note all this will change when the new CAs system come into effect next April - it's just that we still don't know what is going to happen! And I bet we might not find out tomorrow.

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By User deleted
09th Oct 2007 12:13

Thank you
Many thanks Paul, I was becoming paranoid as I see previous accountants of driving instructors applying CA rules applicable to motor vehicles and thought I was missing something.

Alan

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