Budget nasties in March for Contractors?
Discussion
Eric Mc said:
2smokinbs - the tax allowances and deductions for leased vehicles are different to owned vehicles or vehicles being purchased on bank loans or HP finance. However, if the car costs over £12,000 (the Revenue's definition of an "Expensive" car), all allowable tax deductable leasing costs (and related depreciation - if appropriate) will be restricted using an "Expensive Car Formula" set out in the tax legislation.
You sre correct in that, when an owned car is eventually disposed of, the underclaimed Capital Allowances will suddenly be claimable at the point of disposal. The effect is that all the time you were using the vehicle the allowances were restricted and the full allowances only kick in when the vehicle is disposed of.
You sre correct in that, when an owned car is eventually disposed of, the underclaimed Capital Allowances will suddenly be claimable at the point of disposal. The effect is that all the time you were using the vehicle the allowances were restricted and the full allowances only kick in when the vehicle is disposed of.
Wow, my business could buy me a new "expensive" car like oooh, a Corsa.
What a joke, not as bad as stamp duty or IHT, but still
A good example of "fiscal creep" - beloved of Chancellors for decades. Bring in an upper or lower threshold and then fail to adjust it in line with inflation. Gradually you will collect more and more tax revenues that way without actually increasing tax rates or introducing new taxes.
Eric Mc said:
2smokinbs - the tax allowances and deductions for leased vehicles are different to owned vehicles or vehicles being purchased on bank loans or HP finance. However, if the car costs over £12,000 (the Revenue's definition of an "Expensive" car), all allowable tax deductable leasing costs (and related depreciation - if appropriate) will be restricted using an "Expensive Car Formula" set out in the tax legislation.
You sre correct in that, when an owned car is eventually disposed of, the underclaimed Capital Allowances will suddenly be claimable at the point of disposal. The effect is that all the time you were using the vehicle the allowances were restricted and the full allowances only kick in when the vehicle is disposed of.
You sre correct in that, when an owned car is eventually disposed of, the underclaimed Capital Allowances will suddenly be claimable at the point of disposal. The effect is that all the time you were using the vehicle the allowances were restricted and the full allowances only kick in when the vehicle is disposed of.
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