Hello John, I'm Keith and happy to help you with your question.
Here is the good news from the Finance Act, 2014:
'Here's the paragraph from the budget statement [data from Marwilmil]:
VED: classic vehicle exemption – The Government will extend the cut off date from which classic vehicles are exempt from VED by one year. From 1 April 2014 a vehicle manufactured before 1 January 1974 will be exempt from paying VED. (Finance Bill 2014)
So if the vehicle is old enough there will be no road fund tax. Now buying through a company poses but one problem; do the Company's Articles of Association allow such an activity? Most off the shelf companies have Articles which are very broad, providing it is legal the company can do it! However, older companies might have restrictions, so check it out. You might have to amend the Articles, a simple process, but takes a bit of effort.
The interest on the loan, if the Articles permit the purchase, would be allowable against the Company's Corporation Tax (CT) computation. It is probably the most tax efficient way of proceeding.
As it stands the car would be a Fixed Asset. However, if it is proposed to trade the vehicle then it could be brought on to the books as a cost of sale. Conversely, it would be income in the event of sale, but that would be the case on the gain on a fixed asset on disposal, but it might ease the CT position for a year or so and assist the cash flow.
I do hope I have been able to help you with your inquiry.