First year Allowance in second hand car
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Dear respected members,
i am new to the practice and i have got a client who is a taxi driver. the client did not fill his return on time and asked me to complete his return.
the client bought a second hand car in which he used in his business and i wonder if the second hand car qualified First year allowance (2005/6)
please help me, i need your advice and support.
best regards
Jama :?:
i am new to the practice and i have got a client who is a taxi driver. the client did not fill his return on time and asked me to complete his return.
the client bought a second hand car in which he used in his business and i wonder if the second hand car qualified First year allowance (2005/6)
please help me, i need your advice and support.
best regards
Jama :?:
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Comments
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Re: First year Allowance in second hand car
Hello
There's been a similar topic a while ago, you may want to read through it: http://www.aat.org.uk/forums/posts/list/14427.page
I would say that you can claim a FYA on the taxi so long as:-
a) it wasn't purchased from a connected party
b) he didn't use the car personally before using it as a taxi
c) it qualifies as a hire car (http://www.hmrc.gov.uk/manuals/camanual/CA23510.htm)
And IanB was right on the previous post, FYA's can be claimed where there's private use of the asset -
(http://www.hmrc.gov.uk/manuals/camanual/CA27005.htm)
Hope this helps
Jodie0