1x man Ltd Co & Commercial vehicle

jollygreen | 22:48 Thu 29th Mar 2007 | Business

4 Answers

I'm starting a 1 man Ltd Co (I currently work through a composite company) and I've been thinking about buying a land rover 110 pick-up. Can anyone tell me what the tax implications are?

Thanks!
jg

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jedimistress

You'd probably get first year capital allowances and be able to claim back around 40% (last time I checked) of the purchase price within the first year of ownership. Then it would depreciate at 25% year by year after that. Capital allowances can vary from item to item so best check it out first. You can claim the interest on any loan taken to purchase the vehicle against your income.

jollygreen

Question Author

Thanks for that. So it's only the interest that's tax deductable? What about insurance, maintenance costs etc? And what if I was to lease instead of buying??

Cheers!
jg

jedimistress

Yes insurance, tax, servicing and all costs incurred in keeping it on the road can be claimed. Wether or not to lease or buy is a matter for your own budget and circumstances.

jollygreen

Question Author

Thanks :-)

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