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Super deduction on a Funeral Car (Limo)

Would a funeral car qualify for the super deduction

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A limited comapny funeral director purchases a second hand funeral car (limousine), my thinking is that it could be argued that it is a vehicle not commony used as a private vehicle and unsuitable for such use (I have told the client that this isn't black and white) - if that is the case would it qualify for super deductions? Would it be effectively classed as P&M in the general pool?

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By Mr_awol
14th Jan 2022 15:50

I believe it would be if not for the fact that for the super-deduction to apply, capital investment must be in new and unused assets that qualify as main pool expenditure.

So, how old is it, and how much cheaper than a new one is it? If it's nearly new and only marginally cheaper, it might work out better (with tax relief) to buy a new one. Or wait until CT rates go up and (assuming your client has sufficiently high profits to pay tax at 25%) get the same effect anyway.

I'm not sure how this affects clients buying, say, a delivery mileage and/or pre-registered van. I really should look that up before a client phones me and i get caught on the hop unable to give a definitive answer.

Edit: actually re-reading your question you state limo, and i was thinking of a hearse. I;m more confident on the latter than i am on the former.

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Replying to Mr_awol:
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By leicsred
14th Jan 2022 16:12

You are quite right - I missed the not new bit! - This is a lot cheaper second hand.

Thanks for your swift answer

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By David Ex
14th Jan 2022 15:49

If this reflects the legislation, it states that second hand assets don’t qualify. I don’t think a stretch limo would anyway, but that’s just a gut feeling.
https://assets.publishing.service.gov.uk/government/uploads/system/uploa...

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Replying to David Ex:
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By rmillaree
14th Jan 2022 18:27

" I don’t think a stretch limo would anyway, but that’s just a gut feeling."

I guess it would take a whole thread of differing opinions to unravel the answer to that one - guessing thats been done previously - last time i looked i think it was the case that it was a "definately maybe" kind of situation - cant remember why though.

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By paul.benny
15th Jan 2022 09:35

leicsred wrote:
...it could be argued that it is a vehicle not commonly used as a private vehicle and unsuitable for such use...

I'm not tax specialist but I don't think that's the test.

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Replying to paul.benny:
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By The Dullard
15th Jan 2022 11:06

paul.benny wrote:

I'm not tax specialist but I don't think that's the test.

Er... then why stick your neck out?

https://www.legislation.gov.uk/ukpga/2001/2/section/268A

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Replying to The Dullard:
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By paul.benny
15th Jan 2022 13:51

Fair point. I was thinking of the VAT definitions, which are, of course, somewhat different.

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By Truthsayer
16th Jan 2022 17:31

A stretched limo is commonly used as a private vehicle by the rich (or by non-rich posers), and is suitable for such a purpose. I can see no angle from which it can not be seen as a regular car for capital allowance purposes.

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Replying to Truthsayer:
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By rmillaree
16th Jan 2022 18:08

Ok lets pick a random angle

Its not very suitable for private use if its too big to fit in your average car supermarket parking space or other similar parking spots where byou would be able to park a normal car. Probably cant even park it in your garage at home.

"A stretched limo is commonly used as a private vehicle by the rich (or by non-rich posers),"
You are picking a specific subset of limousines owners here though -ifs thats a small subset of all limousine owners it will be more rare than common when taken as a % of the total liousine use.
And for rich bods - are they more likely to use it for a "work trip" or when they are away with the kids wife or party partner of choice having fun? Not sure i would be using a limousine for my personal l travel if i was rich being honest.

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Replying to rmillaree:
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By Paul Crowley
16th Jan 2022 18:53

I am neither rich nor famous but used a limo when I was a foster carer, all private use
If we pick a sub sub set being Limo users (once) and Aweb members then so far all entries are 100% private use as ordinars car

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By Tax Dragon
16th Jan 2022 20:23

Ignore me, miscounting the negatives.

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By tom123
17th Jan 2022 09:35

https://coleman-milne.co.uk/used-vehicles/

Fairly sure your average teen would not be expecting this kind of 'limo' to drop them at a prom.

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Replying to tom123:
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By Mr_awol
17th Jan 2022 10:48

Most of those are hearses. This one wouldn't be too bad to get dropped off in, surely?

https://coleman-milne.co.uk/used-vehicles/ford-hybrid-rosedale-limousine...

Even the others would be ok for the school Halloween disco - especially if there's a passenger in the back.

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Replying to Mr_awol:
paddle steamer
By DJKL
17th Jan 2022 15:18

I think Goths might get ecstatic over a hearse (Can a Goth get ecstatic over anything?)

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Replying to DJKL:
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By Hugo Fair
17th Jan 2022 16:42

Not just goths.
Neil Young famously was driving a hearse when he met Steve Stills (resulting in formation of Buffalo Springfield before C, S, N & Y) ... and he was certainly ecstatic (claiming that the cops couldn't see who was doing what in the back)!

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Replying to Hugo Fair:
paddle steamer
By DJKL
17th Jan 2022 16:49

There is of course also "Once Upon a Time in America" when Noodles (De Niro) gets out of jail.

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