Client is looking to purchase a low CO2 hybrid which on the face of it should qualify for 100% FYA.
It has been used as a demonstration car though which made me doubt the "new and unused" condition. However, I see that HMRC accept that a demonstarion car is new and unused for these purposes: https://www.gov.uk/hmrc-internal-manuals/capital-allowances-manual/ca23153
Their manual states this is the case, "even if it has been driven a limited number of miles for the purposes of testing, delivery, test driven by a potential purchaser, or used as a demonstration car."
This car has done around 8,000 miles, so wouldn't be considered a limited numebr fo miles in my opinion. But does the fact that the guidance uses "or" used as a demonstration car mean the mileage is less relevant here?
Has anyone got any experinece as to wheter the mileage is a releveant factor here, and if so what level HMRC deem acceptable?