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Any Answers Answered: Electric vehicles and limited companies

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As 2022 draws to a close, TAXtv’s Giles Mooney and Tim Good get to grips with two questions from the Any Answers forum about electric vehicles and running two trades in one company. 

9th Dec 2022
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To view the full questions and AccountingWEB reader answers click on the links below:

AccountingWEB member harpsong asked: “Am I correct in saying that running two separate trades under one limited company is no longer an issue post-April 2017? In other words, losses can be offset against the other trade’s gain? Of course, it would need to be a trade and run with the intention of making a profit.”

Our second question comes from dhughes1975 who said: “My question relates to a scenario whereby a company buys an electric vehicle now and gets FYA at 19%.  The company then disposes of the vehicle in 12 months’ time and a balancing charge arises. My understanding is that the charge is restricted to the amount of tax relief obtained. Could we end up with a vehicle being sold for less than it was bought for but due to the increase in CT the initial allowances are wiped out in their entirety?”

For the latest episode of TAXtv visit PTP Interactive.​ TAXtv is a monthly tax update programme available as an annual subscription (11 issues plus budget editions) to view online, download from the internet or watch on DVD.

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