Chauffeur Company - Capital allowances
A client of mine runs a chauffeur business through a limited company and is considering the purchase of a new vehicle. The car is likely to have a co2 greater than 160g and will only qualify for a 10% allowance. As this is a car no Annual investment allowance will be available. The problem is made worse by the fact that the vehicle will be owned by a limited company and consequently there would be no balancing allowance on the sale of the vehicle (which would be the case for a sole trader with some private use). A 10%8% relief will take years to get anything like full relief.
Due to the nature of business activities, the mileage will be very high and it is unlikely that a leasing option would be available.
Appreciate any suggestions on possible ways to maximise relief