New van

trevor_john

Hello
I loaned my ltd company £12000 plus vat to buy a brand new van. The purchase was made just before the end of my tax year as I bought it on the 26th march 2014. As my accountant prepared my final accounts up to the 5th April 2014 I was able to claim 20% off my corporation tax bill.
Could I not have claimed the full amount as I invested my own money in the purchase or does this amount just sit on my books as a loan ? Many thx for taking time to read or reply

Lomast

you answered your own question, you loaned the business the money which sits in the directors loan account. The company then used the money to buy an asset and that is then accounted for in the company acounts (depreciation etc i dont really understand it all thats what i pay my accountant to do)

leveller2911

Doesn't always pay to be Ltd.......................If you hadn't been Ltd you can have offset 100% as an annual investment allowance.....

Pennywise

leveller2911 wrote: »

Doesn't always pay to be Ltd.......................If you hadn't been Ltd you can have offset 100% as an annual investment allowance.....

No, it's exactly the same. The OP has got 100% capital allowance, at 20% corporation tax relief.

trevor_john

Thx for the replies. Yes that's what I was wondering about the AIA. I guess being ltd has knocked that into touch lol.

zygurat789

trevor_john wrote: »

Thx for the replies. Yes that's what I was wondering about the AIA. I guess being ltd has knocked that into touch lol.

If you read the previous post you will see that the limited company has received the AIA of 100% of the cost of the van. This has been set against the company profits and reduced the corporation tax liability by 20% of the AIA.
This is exactly the same as if you had been a sole trader.
The £14,400 you loaned the company can be repaid to you whenever you wish, so long as the company has the funds, without any tax implications