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Post Info TOPIC: Capital Allowances on Hire Purchase Plant & Machinery
rachel_mclean


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Capital Allowances on Hire Purchase Plant & Machinery
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Hi, I'm a little confused on claiming capital allowances on Plant & Machinery purchased on Hire Purchase.

I've read through a lot of HMRC pages and I think you can claim the actual cost of the asset but not the interest - is this right?

 

Thanks in advance

Rachel



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Rachel
Shamus


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yes.

unless interest is capitalised as part of the purchase (not available to micro entities using simplified reporting (FRS105)).

Interest must be written off through the P&L.

The asset itself even though ostensibly belonging to the finance company is a case of substance over form.

The above is basically saying, yes, your right.



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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.
rachel_mclean


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SHAUN, thank you so much AGAIN!! You going to have to start charging me for answering all my questions! You could make a fortune answering everyone's questions

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Rachel
Shamus


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Lol Rachel, if only. biggrin



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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.
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