Is a cherished plate tax deductable?
Discussion
The normal costs of getting your vehicle road legal are allowable - subject to the normal private useage restrictions if applicable. I would (and do) include such costs as part of either
a) the capital cost of the car - if a large amount
b) normal vehicle running cost - if a relatively small amount.
Some of my clients have Cherished Plates on their cars but most have not paid silly amounts for them
a) the capital cost of the car - if a large amount
b) normal vehicle running cost - if a relatively small amount.
Some of my clients have Cherished Plates on their cars but most have not paid silly amounts for them
Bernie-the-bolt said:
Go for it James and don't feel a cock!
I have PO51 MAG which has been waiting to go on a van for 7 years....
It's now on and I'm happy. As you know my company name is Positive Images.... PO5 IMAG as seen on our new van
BTW you will feel a cock but you'll get over it
Hi, long time no speak! I have PO51 MAG which has been waiting to go on a van for 7 years....
It's now on and I'm happy. As you know my company name is Positive Images.... PO5 IMAG as seen on our new van
BTW you will feel a cock but you'll get over it
I already have one which I have had for a few years, looking at buying another relating to one of my business's.
Dont give a toss about looking a cock, at the end of the day its just a bit of fun and I don't know why some people get so wound up about them.
Instead of starting a new thread, I ressurected this one.
If I buy a private plate via my Ltd, can I simply treat it as an asset, until the point at which I sell it and write off any loss as a capital value asset loss? Or is that long winded or missing a trick? Its just that I'm thinking of buying a car-specific plate, which obviously will only last as long as the car.
If I buy a private plate via my Ltd, can I simply treat it as an asset, until the point at which I sell it and write off any loss as a capital value asset loss? Or is that long winded or missing a trick? Its just that I'm thinking of buying a car-specific plate, which obviously will only last as long as the car.
kryten22uk said:
Instead of starting a new thread, I ressurected this one.
If I buy a private plate via my Ltd, can I simply treat it as an asset, until the point at which I sell it and write off any loss as a capital value asset loss? Or is that long winded or missing a trick? Its just that I'm thinking of buying a car-specific plate, which obviously will only last as long as the car.
Calling Eric If I buy a private plate via my Ltd, can I simply treat it as an asset, until the point at which I sell it and write off any loss as a capital value asset loss? Or is that long winded or missing a trick? Its just that I'm thinking of buying a car-specific plate, which obviously will only last as long as the car.
kryten22uk said:
Instead of starting a new thread, I ressurected this one.
If I buy a private plate via my Ltd, can I simply treat it as an asset, until the point at which I sell it and write off any loss as a capital value asset loss? Or is that long winded or missing a trick? Its just that I'm thinking of buying a car-specific plate, which obviously will only last as long as the car.
Is the "private" plate going on a company owned car or a privately owned car?If I buy a private plate via my Ltd, can I simply treat it as an asset, until the point at which I sell it and write off any loss as a capital value asset loss? Or is that long winded or missing a trick? Its just that I'm thinking of buying a car-specific plate, which obviously will only last as long as the car.
If you use your company to buy an aset that belongs on another private asset you are straying into Benefit in Kind territory. Also, from what I can see it has no real "business" atributes so there is no way it would be tax deeductable against business profits - either as a straight cost or through Capital Allowances.
I don't see why an asset has to have a business attribute? Are there rules about what a company can invest in? I would effectively be buying it in anticipation of an investment return. Should that retun be negative then it would logically reduce profits in the year. Much the same as if my co. bought a bond or some gold bullion?
kryten22uk said:
I don't see why an asset has to have a business attribute? Are there rules about what a company can invest in? I would effectively be buying it in anticipation of an investment return. Should that retun be negative then it would logically reduce profits in the year. Much the same as if my co. bought a bond or some gold bullion?
Tax law states that a trading business can only claim tax relief for expenditure that has been incurred "wholly and exclusively for the purpose of the trade".Don't forget, the Revenue do not look on "investment" businesses as "trading" businesses.
Bernie-the-bolt said:
Go for it James and don't feel a cock!
I have PO51 MAG which has been waiting to go on a van for 7 years....
It's now on and I'm happy. As you know my company name is Positive Images.... PO5 IMAG as seen on our new van
BTW you will feel a cock but you'll get over it
'Piece of sI have PO51 MAG which has been waiting to go on a van for 7 years....
It's now on and I'm happy. As you know my company name is Positive Images.... PO5 IMAG as seen on our new van
BTW you will feel a cock but you'll get over it
t image' ?Not sure that works, you know
brokenfather said:
Assuming you can make an investment in a cherished plate, then as it is for investment purposes and not trading purposes, you will not get corporation tax relief on the cost.
I don't want relief on the cost. I want relief on any investment loss that may occur over the period of ownership. Similarly I would pay additional CT on the profit should there be any on resale. Hence treat it as an asset like my Bonus Saver company deposits which are for investment purpose not trading but I still get (negative) CT relief on those returns.
kryten22uk said:
brokenfather said:
Assuming you can make an investment in a cherished plate, then as it is for investment purposes and not trading purposes, you will not get corporation tax relief on the cost.
I don't want relief on the cost. I want relief on any investment loss that may occur over the period of ownership. Similarly I would pay additional CT on the profit should there be any on resale. Hence treat it as an asset like my Bonus Saver company deposits which are for investment purpose not trading but I still get (negative) CT relief on those returns.
As long as your company is not taken to be an investment company rather than a trading company, then it should not be a major problem - you would pay Corporation Tax at the trade rates. If you are an investment company, then you would pay Corporation Tax at the investment company rates.
If you make a loss on disposal, you will only be able to offset that loss against future Capital Gains in the company, notr against trading profits.
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