Radical as company purchase?

[chiz]

Hello

I was looking at purchasing an SR4, but I wanted some advice on purchasing it through my company.

Has anyone you know of purchased a Radical or other track-use-only car and put it through their company accounts as tax deductible, as opposed to a director having to pay for it (and then being taxed on the dividend used to pay for it)?

The car would be used for customer trackdays. I'm sure speaking to somebody from Radical at Oulton Park last July that there was a Radical customer who has done this.

Please advise.

Cheers

[Kickstart]

I really would speak to your accountant about this. The inland Revenue will certainly try and tax you if they can.
All I can say is that I think you would have a better shot if the car was not road legal and/or road registered.
Good luck

[FunkyNige]

PH member Spie has a Radical with Overclockers.co.uk written all over it, and I've seen him mention it as 'the overclockers Radical' over on the OC forums, so you could try asking him about it.

[activems]

Probably depends on the type of business the company does. Eg. If a IT Consultancy was to buy a race car the inland revenue and probably VAT man would get a bit suspicious. Depends on how create your accountant is.

What you could do and is easier for the like of taxman and VAT, is setup another 'motorsport' company to run corporate activities for your main company. This way the motorsport company owns and runs the radical with money obtained by providing corporate entertainment and promotional activities.

This then keeps everything separate and if you then wanted to race, it makes things very straight forward.




>> Edited by activems on Wednesday 21st July 09:38

>> Edited by activems on Wednesday 21st July 09:39