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Car for rentals

A bit of help please ...

Didn't find your answer?

I'm fairly sure the answer's no but ... a couple have 5 properties that they rent out. They purchase a car for the sole purpose of travelling between properties, collecting rent (they're old / old school), doing repairs etc. 

Can they get CAs on the car? I think not, but maybe I'm wrong ... ?



Replies (6)

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By paul.benny
27th Feb 2020 09:40

Would you allow tools for carrying out maintenance?
Would you allow capital allowances if the vehicle was a van?
Not sure why a car is any different, although as with anything, a private use restriction could apply.

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By lionofludesch
27th Feb 2020 09:46

Yeah, you can get capital allowances. Why not ?

Subject to the usual caveats about private use.

The 45p a mile option might be better. I'll leave you to work out the numbers.

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By atleastisoundknowledgable...
27th Feb 2020 10:12

I stand corrected - thought I was restricted to mileage :)

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By meadowsaw227
02nd Mar 2020 10:34

According to a visit we had from HMRC they would also have to keep a detailed mileage log - detailing all business and private journeys .
They would not accept that there was no private use.

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Replying to meadowsaw227:
By lionofludesch
02nd Mar 2020 10:45

You've been a bit unlucky there - most HMRC officers will take a more pragmatic approach.

Maybe they dug in their heels because you were claiming 100% business use.

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By pauljohnston
02nd Mar 2020 11:35

I agree with what others say. You could suggest that on replacement they buy a van.

Much more tax efficient

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