Motor Vehicle Addition

Motor Vehicle Addition

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Just picked up a new client who was a director of a company who has now left his role and gone self-employed. He wants to bring in his personal car into the business, can we bring in the car as at market value on the day he commenced self-employment?

The car was not a company car, therefore no capital allowances have previously been claimed.

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By DMGbus
03rd Feb 2012 08:52

Market value is usual

In my experience any personally owned asset introduced into a business is most usually introduced at market value.  I can think of a few exceptions, but unlikely to apply in this case on the information provided.

Before introducing the car the alternative (if turnover is low enough) of recording business mileages and claiming FPCS mileage rates should be considered - in some cases this will give greater tax relief, but not always.

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