Buying a classic car through my Ltd company

[stinkyspanner]

I know the answer is 'ask your accountant' but I'm just wondering if it makes any sense to buy a classic car through my Ltd company.
For info I have a Private hire company, there is no need for me to have a classic car on the books - I certainly couldn't use one for business purposes but basically there is more money in my company account than my personal one. I have bought and sold a couple of licensed vehicles used them briefly then sold for some profit but I wouldn't exactly class myself as a car trader.
I'm looking at an old Porsche 911, pre89 and values are around £40-£50k
Any pros/cons?

[StevieBee]

You'd be better posting this in the business section.

But, IIRC.... If your company buys the vehicle then the vehicle may only be used for company purposes. It doesn't belong to you, it belongs to your company and it must be kept at the company premises. Unless you can demonstrate that it is essential to the operation of the company then it will not be tax deductible. If all the above apply but you use it for your own pleasure, then you are liable for BIK tax.

Obviously them the rules and whether or not HMRC pick up on it is another matter.

[Glassman]

'for promotional purposes'

[MaxFromage]

Any private use and you will be taxed at market value multiplied by 37% (2001 cc or higher). So at £40K market value, you'd be taxed on a deemed benefit in kind of nearly £15K per annum. Easier to just draw the money and pay the tax.

https://www.gov.uk/hmrc-internal-manuals/employmen...

[stinkyspanner]

Ouch