Capital Allowances on EV, 100% write down
Discussion
Quickie questions on write down for EVs. As I understand it you get 100% first-year writedown on cars under 75g/km.
I run an LLP (Limited Liability Partnership) and as a result I/the partnership pays 40% tax at quite a low threshold (50k or thereabouts). So, if get 100% first year writedown then that's the equivalent of getting 40% back from the tax man.
TRUE/FALSE?
I understand that when I dispose of it I will pay tax on the market value at the time, so I'm only really deferring the tax (sort of)
(40% off a BMW i8 seems to be a good deal)
I run an LLP (Limited Liability Partnership) and as a result I/the partnership pays 40% tax at quite a low threshold (50k or thereabouts). So, if get 100% first year writedown then that's the equivalent of getting 40% back from the tax man.
TRUE/FALSE?
I understand that when I dispose of it I will pay tax on the market value at the time, so I'm only really deferring the tax (sort of)
(40% off a BMW i8 seems to be a good deal)
Thanks peeps. Seems I only get to claim the work use portion of the £100k, not the whole lot. And I knew I'd pay the tax on the profit when the vehicle was disposed of. It's an LLP so no BIK as I'm a partner.
Not so clear cut but still attractive if I can write off, say, £50k in the first year. I think I need pro advice.
Not so clear cut but still attractive if I can write off, say, £50k in the first year. I think I need pro advice.
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