Director car capital allowances

Kara Registered Posts: 39

I have my business tax exam tomorrow and have been hit with a sinus infection which seems to be affecting my ability to find certain references. Can someone help

1) if a director has a car with a personal use element is it apportioned for capital allowances?
2) an employee with a business car for part private use is isn’t it?

I don’t seem to be able to find references in my materials to put my questions to bed! Thank you


  • SophieChall
    SophieChall Registered Posts: 5
    Not the directors car if it’s a limited company. The only time it’s apportioned I think is if it’s a sole trader or partner for their capital allowance computation. Even if it’s an employee of the partnership ie a sales managers car with private use. You still don’t need to apportion it, only if it’s the owners car. That’s my understanding anyway.
  • MarieNoelle
    MarieNoelle Moderator, MAAT, AAT Licensed Accountant Posts: 1,369
    In both cases a company car is provided to employees (directors included) so there is no apportionment for private use (this is only in the case for a self employed individual).
    The private use element will be dealt with by a benefit in kind taxable on the employees.
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