Share this content

Capital allowances on cars

Capital allowances on cars

Didn't find your answer?

Hi,

I have a new client who is newly self-employed since July 2012.  He bought an energy efficient car in 2011 (less than 110g/km CO2 emissions) and uses it 80% for business since July 2012.  Am I correct in thinking that he cannot claim FYA because he bought it in 2011 when he was not yet self-employed but instead he can claim the normal 18% WDA adjusted for 20% private use?

Thanks in advance

Replies (3)

Please login or register to join the discussion.

By JCresswellTax
04th Jul 2013 09:01

Yes

You are correct.

AIA not available on assets introduced by a connected person.

Thanks (0)
avatar
By BBK
04th Jul 2013 12:12

Capital allowances on cars

Thanks for this.

I forgot to add, does he have to devalue the cost as it was 1 year old or can he use the original cost.  I would imagine the car would need to be included at current market value, i.e July 2012 value.

Thanks (0)
By JCresswellTax
04th Jul 2013 13:17

Correct

It should be introduced to the business at its current market value.

Thanks (0)
Share this content