Taxis - capital allowances

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micklynch
micklynch Registered Posts: 15 New contributor 🐸
in General accounting discussion
Just wondering whether a taxi driver can claim the new Annual Investment Allowance on new vehicles or whether they are still subject to the new 20% (£3,000 max) restriction? Cheers guys.

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  • farmergiles
    farmergiles Registered Posts: 1,693 Beyond epic contributor 🧙‍♂️
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    micklynch wrote: »
    Just wondering whether a taxi driver can claim the new Annual Investment Allowance on new vehicles or whether they are still subject to the new 20% (£3,000 max) restriction? Cheers guys.

    My understanding is that if it is a "purpose built" taxi, i.e. a London cab or a mini bus then you can claim the AIA, there is no duality of use. If it is a car used for taxiing, then there is duality of use and therefore the restriction stands.
    I have used this for a client who bought a custom built minibus.
    This is my understanding but one of my more experienced collegues may have a diferent interpretation.

    Kind regards
    Peter
  • claudialowe
    claudialowe Registered Posts: 275 Dedicated contributor 🦉
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    The rules on expensive cars are changing from next year and the WDA will be based on CO2 emissions instead. More importantly there will be no balancing allowance on sale - they will remain there until totally written off, which apparently is about 23.something years!!!!!! No nice balancing allowances any more.

    Claudia

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