My client is a company that wants to buy a motorhome to let out to holidaymakers, which is a total departure from the core business. They wish to reclaim the vat and claim Annual Investment Allowances, is this feasible. I assume that when the vehicle is not being rented out it will be available for use to the directors (the only employees). Should they have proof of marketing the vehicle to the wider public, is there a minimum number of weeks let out to make it allowable? Comments would be appreciated.
Rob
Replies (2)
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Beware section 46 CAA2001
FYA was unavailable on items that are hired out without an operative, havent checked AIA restrictions but assume something similar
John
http://www.hmrc.gov.uk/budget2008/bn12.pdf
Exclusions
18. The AIA will have effect for most plant and machinery expenditure, but certain exceptions that apply to FYAs (SME FYAs are mentioned earlier at paragraph 6) will continue to have effect for the purposes of the AIA. The main exception is expenditure on cars. However, unlike SME FYAs, the AIA will be available for expenditure on long-life assets and assets for leasing.