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TaxRobin
TaxRobin, Tax Consultant
Category: Tax
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Experience:  International tax
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There, I want to buy an electric car through my limited

Resolved Question:

Hi there,
I want to buy an electric car through my limited company.
The car will be used, and cost no more than £18k.
I'm aware that electric cars can be 100% written down in year one, what will happen as this car will be used and NOT new?
Will this make sense over buying personally. I'm aware of the BIK etc...
Submitted: 1 year ago.
Category: Tax
Expert:  TaxRobin replied 1 year ago.
HelloIf car emits 95 g/km or less it can qualify for a 100% first-year allowance but they must be new and not second-hand. Cars that are leased also do not qualify. It has been announced that this emission threshold will change to 75g/km for the period April 2015 to March 2018.https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/315604/factsheet-tax-implications.pdf
Customer: replied 1 year ago.

Ok i understood this.

But what happens if i do not want to buy a new car.

I want to buy a used electric car (as it is much cheaper to buy)

What are the tax consequences of buying a used electric car through my company?

Expert:  TaxRobin replied 1 year ago.
You cannot use the full capital allowance in the first year. The 18% per annum would apply for capital allowance.It would have to be a new car for the 100% to apply in the first year.You can only reclaim VAT on a car if it is used exclusively for business. You said you understood the Benefit In Kind aspect.
Customer: replied 1 year ago.

Ok so i would buy the car with company funds, but only be able to claim 18% per year against tax?

I would not have any extra tax bill (ie like taking a dividend?)

Thanks!

Expert:  TaxRobin replied 1 year ago.
You are most welcome.If you purchase used vehicle you are correct, you cannot claim all in the first year for capital allowance.Your positive rating is thanks enough
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