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Where Taxpayers and Advisers Meet

Car price as capital allowance

FreddieP
Posts:17
Joined:Thu Mar 29, 2012 1:53 pm
Car price as capital allowance

Postby FreddieP » Fri Jan 25, 2019 1:27 pm

I still cannot understand cars as capital allowance for the life of me. I am self-employed a sole trader and I recently bought a car for myself. I use it for business about 20% of the time. Can I claim 20% of the actual cost of the car as capital allowance?

bd6759
Posts:4262
Joined:Sat Feb 01, 2014 3:26 pm

Re: Car price as capital allowance

Postby bd6759 » Sat Jan 26, 2019 10:12 am

No.

Capital allowance are either 8% or 18% of the cost or the written down value. This depends on the emissions. You need to reduce the allowance by 80% to take account of non-business use.

It’s much easier, and probably more beneficial, to claim 45p per mile to cover all costs.


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