Vehicle Capital Allowances

by **alan 2010** on Mon Oct 03, 2011 12:12 pm

Hello all
I would be very grateful for help and advice please on a couple of issues. I am registered for VAT if that is relevant. The vehicles referred to are both vans used solely for work as I have a private car.
Firstly, I have a very old work van ready for the scrapyard. There is no written down value for this as it reached zero a couple of years ago. I have two options - a) to let it go for nothing to the scrapyard or b) sell it for say £50 for 'spares as seen'. How do I deal with both these issues please?

Secondly I have purchased another second-hand work van for £1200. This came from a private buyer so no VAT was involved - a straight cash purchase for that amount. How do I deal with this £1200 please in terms of a business expense on my annual tax return and/or claiming allowances for it.

Many thanks in anticipation. Regards. Alan

by **pawncob** on Tue Oct 04, 2011 5:32 pm

If you scrap it, there is no tax adjustment due, it just ceases to exist as it's already written off. A sale will result in a deduction from the pool value. If that is zero, then tax is due on the £50 balancing charge.
The whole of the cost of the new van can be written off using the AIA for the purchase.