sole trader capital allowance - cars

kev123 Registered Posts: 7 Regular contributor ⭐ ? ⭐

Sole trader buys a car used half for business, half personal. The car was bought on finance over five years, with a 20% deposit paid at time of acquisition.

Am I correct in thinking:

Capital allowance available on total cost, adjusted for private usage.
Interest on finance available to claim, adjusted for private usage.



  • T.C.
    T.C. Registered, Tutor Posts: 1,448
    That sounds about right.
    Initil car cost, multiplied by CA, then proportioned to personal/business use and the business part claimed.
    Interest proportion using the same percentage.

    Alternatively you could look at claiming business mileage instead - it might be easier!
  • kev123
    kev123 Registered Posts: 7 Regular contributor ⭐ ? ⭐
    thanks for confirming that.

    i will work out the most beneficial option.
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