If a part time driving instructor buys a second hand car and has dual controls fitted, does 100% of the cost have to be claimed in the year of purchase as an AIA on the SA form or can a percentage be claimed each year until the car is disposed of, instead? Would the cost of the dual controls be listed as an expense? If the full cost of the car is claimed as an AIA, a loss would be made.
this sort of vehicle is not a car for tax purposes but rather plant (the same as a crane or dumper truck).
The intended use of the plant is in driving instruction so all those costs incurred in bringing the vehicle into condition for purpose (including the dual controls) would be capitalised as part of the machine.
AIA would be available as whilst it may look like a car it is not treated as one (AIA never being available on cars).
However. AIA does not have to be claimed. Its an optional relief that can also be manipulated against the most beneficial pools for the client.
HTH,
Shaun.
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
So, does that mean that the car plus dual controls go into the main pool and a total of 18% of the cost can be claimed this year, thus reducing the pool value down by 18%? Then, 18% of the remainder claimed next year and so on?
Thats the one. Just treat as any other plant or equipment.
I've just had a quick look around to make sure that I'm not leading you up the garden path with my reply and it seems that my stance is supported by those nice accountants over on Aweb.
Have a read of this thread that may really help you.
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
