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Can I offset the cost of a new vehicle over 2 tax years?

Hoblands
by Hoblands 10 July 2012  |  Comments 2 comments  |  Love Love  0 loves

I am self employed but have regular contracts in place so my income is fairly level each year. I am currently (after expenses) around £5000 a year into the higher tax rate. I will be needing to replace my van this year and intend to buy outright in the region of £10000, if I write this down as a single business expense for 2012/13 I will only get the higher rate relief for this year. Is there a way of deferring half of the purchase price and writing it down in the following tax year?? Thanks, Paul

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Comments (2)

  • MikeGG1
    Love rating 879
    MikeGG1 posted

    Ordinarily, capital expenditure (items over £200) of up to £25,000 in total for the year would be allowable for 2012/13. Last year it was £100,000.

    You need to consult the self-assessment helpline to see if/how you can defer half to next year.

    Mike

    Posted on 11 July 2012 | Love Love  0 loves Report
  • Hoblands
    Love rating 0
    Hoblands posted

    Thanks for your reply Mike. Contacted the helpline and although there is a way to defer 18% it's probably more complicated than what its worth. Decided to hang on to the old van, bite the tax bullet this year and get the new vehicle (and higher rate relief) next April.

    Cheers

    Paul

    Posted on 12 July 2012 | Love Love  0 loves Report

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