Could someone please clarify something for me. If a sole trader leases a car (not least purchase but straight forward rental so no balance sheet capitalisation) that is a higher Co2 vehicle and uses it for business and private use, how do I deal with the restriction in the tax comp? Do I just disallow the personal usage % or so indeed to make some adjustment for the 15% leasing restriction too? If so, how do the two interact?
Is it the same for a parter in a partnerships/llp?
Replies (9)
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had the same issue last week - guidance from a HMRC techinical advisor
disallow 15% of the lease only
disallow pte use of other motor costs - fuel, insurance etc
Above appears to be in conflict with this:-
https://www.accountingweb.co.uk/anyanswers/question/better-buy-or-lease-...
4) Lease rentals are subject to a private use deduction and consequently the finance cost implicit within the rentals is not deductible against tax in full.
85%
Above appears to be in conflict with this:-
https://www.accountingweb.co.uk/anyanswers/question/better-buy-or-lease-...
4) Lease rentals are subject to a private use deduction and consequently the finance cost implicit within the rentals is not deductible against tax in full.
That's right. Only 85% is deductible.
Mixing matters?
Above appears to be in conflict with this:-
https://www.accountingweb.co.uk/anyanswers/question/better-buy-or-lease-...
4) Lease rentals are subject to a private use deduction and consequently the finance cost implicit within the rentals is not deductible against tax in full.
That's right. Only 85% is deductible.
The 15% isn't the private use deduction!
I'm with Portia on this one.