Sole trader - purchase of a new van

[Katmad]

I am helping a friend to prepare their tax return for 2019-2020, he operate as a sole trader and has purchased a replacement van for his old one which was disposed of at nil value.

He operates his accounts on a cash basis and the van in purely for business use. I am unsure if it should be accounted for as Capital Allowance as the accounts are on a cash basis, does it then just get treated as an Expense allowable for tax. I find the HMRC guidance notes a little amiss as it talks about cars but does not appear to cover vans unless I am looking in the wrong place.

If anyone could clarify this for me it would be greatly appreciated.

[jvenegas16]

There is no problem in claiming capital allowance on the new van that is 100% for business purpose

[bd6759]

You can’t claim capital allowances if you are using the cash basis.

The cost is treated as an expense just like any other expense.

[robbob]

bd6759 is correct that the van is simply treated as a normal expense as it its deemed to be more akin to plant/equipment than a car.
confirmed in BIM7005
https://www.gov.uk/hmrc-internal-manuals/business-income-manual/bim75005

Under the cash basis rules, a business can have a deduction for expenditure on acquiring goods vehicles and motor cycles (but not cars).