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Home / Simons-Taxes /Business tax /Part B3 Capital allowances /Division B3.3 Plant and machinery /Particular assets and trades / B3.342 Plant and machinery allowances—cars
Commentary

B3.342 Plant and machinery allowances—cars

Business tax

Expenditure on the provision of a car which is not within one of the exceptions noted below under 'Meaning of car' is subject to the following special rules:

  1. Ìý

    •ÌýÌýÌýÌý no annual investment allowance is given (see B3.329)1

  2. Ìý

    •ÌýÌýÌýÌý no first-year allowance is given, unless the car has very low CO2 emissions within the provisions described in B3.324A2

  3. Ìý

    •ÌýÌýÌýÌý where there is non-business use of the car the provisions in B3.359 apply3

  4. Ìý

    •ÌýÌýÌýÌý cars other than hire cars for the disabled do not qualify for short-life assets treatment (see B3.343)4

Expenditure on cars other than those in CAA 2001, s 268A(1)(a)–(c) will be allocated to one of two plant or machinery pools — the main pool or the special rate pool5 and qualify for writing-down allowances accordingly.

For HMRC guidance on the treatment of cars see CA23510–CA23560.

Main rate car

A main rate car is6:

  1. Ìý

    (i)ÌýÌýÌýÌý a car that is first registered before 1 March 2001

  2. Ìý

    (ii)

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Web page updated on 17 Mar 2025 16:52