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capital allowances for cars

LinaLina Feels At HomeRegistered Posts: 41
in General accounting discussion
Hi,
If vehicles were bought for business use, i mean lika a taxi use, what rate of capital allowance should be used in first year? I hope it is not 25% as for ordinary car. As this vehicle is a car, but also i would clasify it as a machinery.
Please help. Vehicle was bought in January 2007, accounts end in 30/09/2007.

Thank you

Comments

  • DeanDean Experienced Mentor DevonRegistered Posts: 646
    Click Me!

    Regards

    Dean
  • LinaLina Feels At Home Registered Posts: 41
    Thanks a lot Dean,

    I read it, but still not clear???

    So if client uses a car to for taxi services, does section 2 bellow applies or i still should treat is as a car?

    For PMA purposes a car is a mechanically propelled vehicle except a vehicle:

    1.constructed in such a way that it is primarily suited for transporting goods of any sort, or
    2.of a type which is not commonly used as a private vehicle and is not suitable for use as a private vehicle.

    Thanks a lot
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