Can i buy a registration plate, as a business expence?

[Contract Killer]

Was browsing eBay and came across a private registration plate i liked the look of, and "almost" spells my business activity.

So can i purchase it as a business expense, along with any transfer fee etc?

Would be going on my company van.


Yes i know private plates are not popular on PH...

[MrSparks]

Pretty sure you can, I did... it was a work related number plate and went on a work vehicle! Accountant didn't have any issues.

[eltawater]

Glassman

[LeighW]

The business can buy it, but it is classed as an intangible asset so does not qualify for any form of tax relief.

[CRA1G]

Yes you can.. It would be treated just the same as advertising..

[LeighW]

CRA1G said:

Yes you can.. It would be treated just the same as advertising..

No, that's not correct. You are buying the right to use those letters. It is not an allowable revenue expense, it is an intangible asset which, if disposed for at a profit is subject to capital gains tax.

[b] Paragraph 76923 of the Capital Gains Manual has the answer:

'The value of a personalised car number plate lies in the right to use a particular combination of numbers and letters. This right is an intangible asset which is separate from the actual plate, and from the vehicle to which it is attached. So a person who acquires a personalised car number plate may incur capital expenditure in acquiring:

* the plate itself (usually of negligible value);

• the car (where the plate is acquired with the car); and

• intangible rights of enduring benefit which allows him to use a specific combination of letters and numbers when registering a car.'

Registrations are looked at in paragraph 76928:

'A vehicle registration is made up of a combination of numbers and letters. The right to use a particular registration mark is not a chattel and is not part of the particular vehicle to which the plate showing the combination may be attached.

'A disposal of such a right does not, therefore, represent either:

* a disposal of a passenger car, or

• a disposal of another road vehicle, or

• a disposal of plant or machinery, or

• a disposal of a chattel, or

• a disposal of a wasting asset.

'Any gain arising on the disposal of a registration number will, therefore, be a chargeable gain.'

Paragraph 2396 of the Revenue's Capital Allowances Manual deals with car number plates:

'A car number plate is a chattel which is not machinery or plant in itself. It does not become machinery or plant until it is attached to a car which is itself machinery or plant.

'You may get a claim that expenditure on acquiring a personalised number plate qualifies for capital allowances as expenditure on the provision of machinery or plant. A personalised number plate gives intangible rights of enduring benefit - the right to use a certain combination of numbers and letters when registering the car. Those rights are not plant.' [/b]

[CRA1G]

Charlie Mullins of Pimlico Plumbers have a huge and famous collection of numbers on their company vehicles mainly purchased directly from DVLA and all showing on the company's balance sheet as an assets to which VAT has been reclaimed on the purchase because they are treated as a advertising tool.?

[Jockman]

CRA1G said:

Charlie Mullins of Pimlico Plumbers have a huge and famous collection of numbers on their company vehicles mainly purchased directly from DVLA and all showing on the company's balance sheet as an assets to which VAT has been reclaimed on the purchase because they are treated as a advertising tool.?

If they are showing as an asset then they have been capitalised rather than put through as expenditure for tax relief.

[LeighW]

Jockman said:

CRA1G said:

Charlie Mullins of Pimlico Plumbers have a huge and famous collection of numbers on their company vehicles mainly purchased directly from DVLA and all showing on the company's balance sheet as an assets to which VAT has been reclaimed on the purchase because they are treated as a advertising tool.?

If they are showing as an asset then they have been capitalised rather than put through as expenditure for tax relief.

Exactly. On the balance sheet as intangible assets.

[Eric Mc]

LeighW said:

Jockman said:

CRA1G said:

Charlie Mullins of Pimlico Plumbers have a huge and famous collection of numbers on their company vehicles mainly purchased directly from DVLA and all showing on the company's balance sheet as an assets to which VAT has been reclaimed on the purchase because they are treated as a advertising tool.?

If they are showing as an asset then they have been capitalised rather than put through as expenditure for tax relief.

Exactly. On the balance sheet as intangible assets.

Absolutely.

Tax relief for capital expenditure is obtained by claiming Capital Allowances. The nature of the asset will determine what type of Capital Allowance is applicable. In the case of an Intangible Asset such as a personalised number plate, there are no Capital Allowances available.

[sideways sid]

So, out of curiosity, would there be any advantage to the OP for example buying the plate personally, and leasing or licensing its use to the company in return for a rental fee or royalty payment?

I haven't researched this, but assume that whilst the owner would buy the plate from taxed income, the company would not pay Corporation Tax on the amount of the payment, and as the payment is not related to employment, neither the company or the owner would pay National Insurance Contributions on the payment.

Is this possible and legal?

[Eric Mc]

What would be the point?

Even if the company claimed it as a business cost (and saved Corporation Tax on it at 19%), the individual would have to declare it as income, and declare Income Tax on it at 20% or 40% or even 45%.

[Contract Killer]

Thanks guys, have purchased it through the company, and will let the accountant deal with how.

Once on the van i will report myself to the crappy personalised plates thread



Im a sparky, and 999 is the last 3 digits of my phone number.

[Eric Mc]

Contract Killer said:

Thanks guys, have purchased it through the company, and will let the accountant deal with how.

Once on the van i will report myself to the crappy personalised plates thread



Im a sparky, and 999 is the last 3 digits of my phone number.

He/she will capitalise it as an intangible asset.

The company will get zero tax relief.

[48k]

Contract Killer said:

Im a sparky

With that number plate I'd have put money on you being a plumber!

[Condi]

48k said:

Contract Killer said:

Im a sparky

With that number plate I'd have put money on you being a plumber!

Me too

[Xaero]

Condi said:

48k said:

Contract Killer said:

Im a sparky

With that number plate I'd have put money on you being a plumber!

Me too

Same here, pipes leak, electricity less so.

[hotchy]

I thought it said leaky too tbh haha

[MrSparks]

I'm also an electrician by trade but my first thoughts when I saw that plate was that you were a plumber!

Still cool though, my plate is TE54 HMS which means nothing to most, but my company is Tech 4 Homes so it keeps my small mind happy

[Glassman]

eltawater said:

Glassman

I know nothing.