Hoping for a second opinion here as my brain is failing completely! I have a customer who took out a personal loan last year (£15k) to buy a business van (£14k). He bought the van outright (in his own name - not company) and has been using it exclusively for business use. He has started paying the loan back and wants to make monthly payments to himself (so he can pay back the personal loan) as purchase of a capital asset. Am I right in saying this isn't allowable as 1. the loan was more than the purchase of the vehicle, 2. He'd only be able to claim the interest?
I have said that if the business purchased the asset from him then this would be allowable but he says he doesn't want to do that (not sure why other than it being in the business name rather than his).