Private use of a car in a small car business

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I have a client who runs a small car business. He buys approximately 4 to 6 cars a year, uses the cars privately and then sells them on for a profit, due to the enhancements he has made. He usually only keeps each car for 2 to 3 months at a time. My client incurs various expenses including the purchase price of the car, insurance, car tax, new tyres etc, as well as the cost of enhancements (new engine in one case).

As my client uses the car privately, what deduction, if any, should be made to these expenses? I am happy that items such as car tax and insurance should not be deducted as they are not wholly and exclusively related to the business, however I am unsure if a deduction should be made against the purchase price of the car or to the enhancements, seeing as he did have private use of the vehicles.

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