JD Classics, what have they been up to?

[Pat H]

sng45 said:

presumably passing Snickers bars off as Toblerones !

[Dermot O'Logical]

Am I right in thinking that if one is a private individual buying a few classic cars for one's own enjoyment, any profit which one might make on the sale of these cars in the future is non-taxable?

So although JD Classics as a business would be liable for Corporation Tax on their profits, in the scenario being discussed at length, Mr Tuke, as a private investor, would not have to pay tax on any profit he might make on the sale of any cars purchased from JD?

I'm just trying to form a rounded opinion and understanding of what appears, however you look at it, to be a can of worms.

[thegreenhell]

There's no CGT on cars, and I think HMRC will allow you to sell something like six cars per year as a private individual before they consider you to be a trader.

[singlecoil]

What matters is whether you are intending to make a profit. If the answer is yes, then in HMRC's eyes you are a trader.

[av185]

Intention to make a profit is very difficult to prove.

Of more concern would be whether it was seen as a hobby. Other factors such as regularity of sales, type of adverts, registering the vehicles to yourself, trade insurance etc etc would all come into the mix.

[neutral 3]

Updates ?

[CanAm]

singlecoil said:

What matters is whether you are intending to make a profit. If the answer is yes, then in HMRC's eyes you are a trader.

Look on the bright side, nice tax rebate on the horizon for Mr Tuke.

[skwdenyer]

CanAm said:

singlecoil said:

What matters is whether you are intending to make a profit. If the answer is yes, then in HMRC's eyes you are a trader.

Look on the bright side, nice tax rebate on the horizon for Mr Tuke.

Doesn't quite work like that...

[CanAm]

skwdenyer said:

CanAm said:

singlecoil said:

What matters is whether you are intending to make a profit. If the answer is yes, then in HMRC's eyes you are a trader.

Look on the bright side, nice tax rebate on the horizon for Mr Tuke.

Doesn't quite work like that...

I wasn't being entirely serious. But wouldn't it be good if it did.

[Burwood]

CanAm said:

skwdenyer said:

CanAm said:

singlecoil said:

What matters is whether you are intending to make a profit. If the answer is yes, then in HMRC's eyes you are a trader.

Look on the bright side, nice tax rebate on the horizon for Mr Tuke.

Doesn't quite work like that...

I wasn't being entirely serious. But wouldn't it be good if it did.

There’s no capital gains in cars so no deductible on losses.

[singlecoil]

Burwood said:

CanAm said:

skwdenyer said:

CanAm said:

singlecoil said:

What matters is whether you are intending to make a profit. If the answer is yes, then in HMRC's eyes you are a trader.

Look on the bright side, nice tax rebate on the horizon for Mr Tuke.

Doesn't quite work like that...

I wasn't being entirely serious. But wouldn't it be good if it did.

There’s no capital gains in cars so no deductible on losses.

Though if someone lost money on a car that he bought and sold intending to make profit (a.k.a. trading) he could certainly offset the loss against the profit made elsewhere in the business for tax purposes.

[wag2]

I expect HMRC will have their cake and eat it. You will be a trader if you keep making a profit but not if you make a loss. Bit like the rules on company cars. If the company provides you with a car, the benefit in kind and hence tax is large. If you provide your car for business use, the converse does not apply.

[RichB]

wag2 said:

I expect HMRC will have their cake and eat it. You will be a trader if you keep making a profit but not if you make a loss. Bit like the rules on company cars. If the company provides you with a car, the benefit in kind and hence tax is large. If you provide your car for business use, the converse does not apply.

You can offset up to 45p/mile against earnings. So you can claim the difference over and above what your company reimburse you for mileage.

[wag2]

I remember Autocar reporting many years ago that it cost about 80p/mile to run a bread and butter Ford

[RichB]

I've no idea, just saying what the HMRC rules are.

[anonymous-user]

RichB said:

I've no idea, just saying what the HMRC rules are.

Which doesn't come close to covering the costs.

[silentbrown]

wag2 said:

I remember Autocar reporting many years ago that it cost about 80p/mile to run a bread and butter Ford

Fleetnews calculator for a top spec Mondeo over 3 years/30K miles is 76p/mile today. dropping to 52p if you do 60K miles in that time.

Extrapolating between the two, every additional mile you do over 30K is costing you 28p in fuel, servicing and depreciation.

https://www.fleetnews.co.uk/car-running-costs-calc...

[singlecoil]

It's almost as if the government is trying to persuade people to find alternatives to driving all over the country on business.

[MarkwG]

singlecoil said:

It's almost as if the government is trying to persuade people to find alternatives to driving all over the country on business.

Indeed...if only there were some...

[singlecoil]

MarkwG said:

singlecoil said:

It's almost as if the government is trying to persuade people to find alternatives to driving all over the country on business.

Indeed...if only there were some...

There are.