Capital Allowance from order or deliver date

EV Capital Allowance

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Looking to purchase an EV which qualifies for the 100% allowance in the first year. Year end is this month. As long as I place the order before year end , and delivery is after year end, would I still be able to claim the allowance within this year end? Thanks in advance 

Replies (8)

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By David Ex
07th May 2024 11:33

I think Section 5 Capital Allowances Act 2001 probably covers it.

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Replying to David Ex:
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By K Haq
07th May 2024 11:45

Thanks and just checked section 5 of the act:

"an amount of capital expenditure is to be treated as incurred as soon as there is an unconditional obligation to pay it."

So as I would have the obligation this side of the year end, following signing docs etc, I can claim the allowance now.

Thanks again

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Replying to K Haq:
By Ruddles
07th May 2024 11:59

Wrong

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Replying to Ruddles:
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By K Haq
07th May 2024 14:03

Thanks, yes unconditional obligation looks to be when delivery takes place

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Replying to K Haq:
Stepurhan
By stepurhan
07th May 2024 13:00

K Haq wrote:

Thanks and just checked section 5 of the act:

"an amount of capital expenditure is to be treated as incurred as soon as there is an unconditional obligation to pay it."

So as I would have the obligation this side of the year end, following signing docs etc, I can claim the allowance now.

Thanks again

So you have an unconditional obligation to pay now, even if they fail to deliver the car later? I'm not sure you got a good deal there.
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Replying to stepurhan:
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By K Haq
07th May 2024 14:05

Thanks for your reply. No I have got that wrong initially. the unconditional obligation would typically be when its delivered. So would need to find a qualifying vehicle in stock that could be delivered before end of the month

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Replying to Justin Bryant:
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By K Haq
07th May 2024 14:05

Thanks for sending the link

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