Electric Car Sale via business/tax
Discussion
I recently purchased an electric car via my business. It was registered and collected on 24th December 2021.
I've now sold it, my understanding is that the write down would take place in 2021 for that tax year and any losses it then created carried forward/back? Can anyone elaborate?
If correct, whats to stop you ordering a new electric car each year, getting the write down for tax purposes and you then get a 'free' car via the corporation tax saved?
I've now sold it, my understanding is that the write down would take place in 2021 for that tax year and any losses it then created carried forward/back? Can anyone elaborate?
If correct, whats to stop you ordering a new electric car each year, getting the write down for tax purposes and you then get a 'free' car via the corporation tax saved?
batmanreturns said:
I recently purchased an electric car via my business. It was registered and collected on 24th December 2021.
I've now sold it, my understanding is that the write down would take place in 2021 for that tax year and any losses it then created carried forward/back? Can anyone elaborate?
If correct, whats to stop you ordering a new electric car each year, getting the write down for tax purposes and you then get a 'free' car via the corporation tax saved?
Re: the first car that you bought - I assume you claimed 100% WDA. When you then sold it there should be a balancing charge (i.e you'll have to pay CT on the sale proceeds) so it's not completely free. You've also got BIK to pay.I've now sold it, my understanding is that the write down would take place in 2021 for that tax year and any losses it then created carried forward/back? Can anyone elaborate?
If correct, whats to stop you ordering a new electric car each year, getting the write down for tax purposes and you then get a 'free' car via the corporation tax saved?
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