Capital Allowance on hire purchase of plant

KPM

Hi

Could anyone help me with this.

When working out capital allowance is the value of equipment under a hire purchase agreement allowable as part of the annual investment allowance upto £50,000.00. (admin, interest, vat elevments not included in above figure)

SarahS

Yes - If you buy on hire purchase, you can claim a capital allowance on the original cost of the item but the interest and other charges count as business expenses.

http://www.hmrc.gov.uk/manuals/camanual/CA23310.htm

KPM

Thanks