Taxis - capital allowances

micklynch
micklynch Registered Posts: 15 Dedicated 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
    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
    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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