First year capital allowances
I have a client, who has (alledgedly) been told by his friends accountant that he can claim 100% first year allowance against the purchase of a new van. Now, unless I've lost the plot, I have always believed that vans are not part of plant & machinery and do not qualify for this 100% allowance. I am aware that in the next tax year there is a proposal for100% allowances for electric vans.
Can someone please confirm my beliefs and save my sanity!!!
Terminology
Pedantic it may be, but I assume that you are referring to the Annual Investment Allowance.
But it may be important - if the £50k AIA has already been used in respect of other plant, van will qualify for either FYA of 40% (if bought during the current tax year) or 20% WDA. In other words, it doesn't automatically qualify for a 100% "first year allowance"
PC
Agree with the above
...although I would just add that if there was private use an adjustment would need to be made for this. Otherwise it is effectively deemed plant for the purposes of AIA.
sorry, but.....
you are wrong.
see here, for example: -
http://www.hmrc.gov.uk/worksheets/sa103s-notes.pdf