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Sam, Accountant
Category: Tax
Satisfied Customers: 15305
Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
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If I bought a car for cash, not on finance can I claim it

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If I bought a car for cash , not on finance can I claim it back through my property / fhl business ?

Hi, Sam here , one of the UK tax Experts here on Just Answer, thank you for your question and I shall reply shortly


No as I cannot see how you would have any need for a car to collect rental income as I would expect the mileage to look after the property (properties) is minimum compared to private use - please advise if there is more than minimum use - Thanks Sam

Customer: replied 6 months ago.
I have 3 normal buy to let’s and 4 furnished holiday let’s.. I manage and clean and prepare the holiday let’s myself so have to get to and from each one on a daily basis carrying laundry and guest supplies etc

The buy to lets are not trade income but rental income so just the mileage allowance can be claimed nut the four FHLs are trade income but again you did not advise whether there was more business use then private as this gets complex if you claim a personal purchase through a business - so please advise whether the use for the FHLs is minimum and if not what percentage of car use is business related (remember just on the FHLs) - Thanks Sam

Customer: replied 6 months ago.
I would probably say it was 50%


Apologies for my delay in response its got very busy on here this evening. Then against the FH you could claim some of the car purchase but note that you must keep business and total miles so you can estan;lish the buiness element of all costs to run the car AND apply this percentage as a capital allowance against the car itself. so say 1000 miles was for FHL for the year and you undertook 2000 miles in total then you could claim 50% of, road tax, repairs,MOT etc etc and then say you bought for £2000 then you would need to apply the capuital allwoance percentage for a used car which is determined by CO2 emission output - see link here then you can claim this against the trade position - then mileage rates against the rentak buy to lets (so then also keep separate mileage for these trips too) - thanks Sam

Customer: replied 6 months ago.
Ok, for your help :)


You are very welcome please do take the time to rate me for the level of service I have provided ( or click accept)

Thanks- Sam

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