Car vs Van - Capital Allowances

Bluebirdman_of_Alcathays

Trying to give some sort of guidance to a self employed friend of the family. They have bought a Ford Ranger, and want to utilise AIA and write it down 100% in the year of purchase. They say it's a commercial vehicle, and will therefore qualify for AIA, I'm not sure.


Looking at HMRC guidance it is definitely suitable for private use, indeed he uses it privately. However, if you look at the vehicle, it is also definitely suitable for transporting goods. I was hoping there was a definitive list by vehicle to resolve this conflict, I can't seem to find one.

Any input from other forumites would be much appreciated!

https://www.gov.uk/capital-allowances/business-cars

Pennywise

Have a look at the following webpage which is a very good summary of whether it's a van or not for HMRC purposes which determines the tax relief treatment. Will probably depend on the exact make/model and as you will read, the main criteria for pick up trucks is the payload hence the design intention rather than actual use.

http://bishopfleming.co.uk/is-it-a-car-is-it-a-van-or-is-it-a-car-derived-van-or-combi-van/

Another good webpage is:-

http://www.acumen-accounting.co.uk/selfemployment/subsheet-cv-vans.html

Of course, if self employed rather than trading through a limited company, the tax relief has to be apportioned to disallow private use in the normal way as it would whether it's a van or a car.