Returning an EV company car tax strategy
Returning an EV company car tax strategy
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DSLiverpool

Original Poster:

15,753 posts

220 months

Friday 10th October
quotequote all
If you as a business don’t proceed to buy your ev company car that you’ve had 100% tax credit for then when it’s given back for the outstanding amount owned or sold and the finance settled is that counted as income into the business as if you’d sold stock?

TBH I’m bored with my EQC and want to get something else but I don’t want to handle the transaction poorly.

Silverage

2,287 posts

148 months

Friday 10th October
quotequote all
When you dispose of the vehicle all of the proceeds become liable for corporation tax. Obviously you've saved the tax on the depreciation.

In my case my £42,000 Ioniq 5 (fully offset against CT 4 years ago) is now worth less than £15,000 so that's a lot of tax saved.

DSLiverpool

Original Poster:

15,753 posts

220 months

Friday 10th October
quotequote all
Cheers - thought so. I’ll need the EQC to depreciate a bit more