Taxation

Capital Allowances on Company Cars

Business Cars

You can claim capital allowances on cars you buy and use in your business. This means you can deduct part of the value from your profits before you pay tax. You can only use Writing Down Allowance to work out what you can claim – cars don’t qualify for Annual Investment Allowance.

If you also use your car for private purposes you can only claim for the proportion of business use of the car – or of any other asset that has private use.

Use writing down allowances to work out what you can claim.

Government Website on Capital Allowances for Business Cars – The Final Word