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TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15980
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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My question relates to accountancy and capital allowances. I

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Dear Sir/madam
My question relates to accountancy and capital allowances. I am aware and that the total that can be claimed against a vehicle is £3000 should the cost exceed £12000. However, does this restriction apply to hackney taxi cabs since they are a business in itself? Can 18% capital allowances be claimed whatever the cost even if the claim exceeds £3000 or , as with other vehicles , is this maximum that can be claimed each year if we chose not the claim the full AIA in the first year?
Thank you

Hi. My name is*****'m looking at your question now and will post my answer or ask for more information here in a short while.

A Hackney taxi cab is not a car for capital allowances purposes so the £3,000 restriction which was discontinued for cars several years ago in any event doesn't apply. A Hackney taxi cab is plant and machinery and is eligibel for the Annual Investment Allowance. The capital allowances regime for cars and plant and machinery can be found here.

I hope this helps but let me know if you have any further questions.

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