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CGT - Private Vehicle used in Business

CGT - Private Vehicle used in Business

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With regards to CGT, if a client has a personal vehicle which is claimed as 60% personal, 40% business, how does this work for CGT? Do they have to pay CGT (over the allowance) on the full amount or is 60% added back?

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By Wanderer
31st Jan 2022 16:03

CGT on a private car? Have they actually sold for more than it cost?

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Replying to Wanderer:
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By Luke5
31st Jan 2022 16:04

Private car that is also used for business - I was just thinking theoretically

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By SteveHa
31st Jan 2022 16:09

Unless it's a prestige and likely antique vehicle, CGT is not in point. Is it a 1965 Rolls Royce Silver Shadow in pristine condition?

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Replying to SteveHa:
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By Luke5
31st Jan 2022 16:13

Cheers, Steve - thought as much! Just out of interest, theoretically, if CGT did come in to affect for a vehicle used personally and for business, would the personal aspect reduce the gain or would the full gain be subject to the tax?

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Replying to Luke5:
RLI
By lionofludesch
31st Jan 2022 17:47

Luke5 wrote:

Cheers, Steve - thought as much! Just out of interest, theoretically, if CGT did come in to affect for a vehicle used personally and for business, would the personal aspect reduce the gain or would the full gain be subject to the tax?

Let's not waste time here. Very few cars are subject to CGT. I can't imagine a scenario where a car being used 40% for business and 60% private would be subject to CGT at all.

But tell us your story. Maybe I'm just not good enough at imagining.

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Replying to SteveHa:
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By TheNovice
31st Jan 2022 20:56

SteveHa wrote:

Unless it's a prestige and likely antique vehicle, CGT is not in point. Is it a 1965 Rolls Royce Silver Shadow in pristine condition?

Hi Steve, for my own learning what makes an antique vehicle any different than a normal passenger vehicle for CGT? Is it merely that its predictable life is > 50 years and therefore it's no longer a wasting chattel?

Thanks.

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Scooby
By gainsborough
31st Jan 2022 18:10

OP, have you considered balancing adjustments in the capital allowances comp which is the more likely scenario if the business is on the accruals basis?

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Replying to gainsborough:
RLI
By lionofludesch
31st Jan 2022 18:25

Or, indeed, the cash basis.

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Replying to lionofludesch:
Scooby
By gainsborough
31st Jan 2022 21:11

Sorry - yes - (31st January brain) - just spotted that this is a car.

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