100% FYA for a zero Co2 electric (pre reg) car

Hi, I’m looking to purchase an electric car with a view to claiming 100% FYA allowance. * Car registered by dealer in Sep 2023. * Sat on the forecourt till today with 10 miles on the clock (from factory delivery truck into showroom) * it is now Aug 2024 & nearly a year has passsed. The car being a pre registered & used as a showroom car (not a demonstrator car). If the company purchases, it will be shown as second owner. Can you please clarify if the company can claim 100% FYA based on being unused & a demo car can be seen as ‘new & unused’ (all demo cars must be pre registered so it’s a confusing statement from HMRC guidelines). This is a showroom display car & fall under a niche category. Or would HMRC take the easy route that a pre reg car means used even though there is no usage. Could you please help clarify? Much appreciated.

Hi 
Please see the Guidance within “Claim Capital Allowances and in particular “Business cars” at Claim capital allowances: Business cars 
To qualify for 100% first-year allowance, the car must be new and unused. As you have said you would be the second registered owner of the car, the car therefore would not be 'new'. 
Thank you
 

Hi , I am the director of a Limited company and our main asset is a electric car. I bought it 3 years ago brand new and still have unused capital allowance to use against future profit. What % of that remaining 100% first-year allowance I am allow to use for the following tax years? Please advise

Hi Cecilia Quinones,
HMRC does not provide tax planning advice.
Please see the following guidance for assistance at:
Claim capital allowances: Business cars
However, if you need further support you will need to speak to an agent/accountant.
Thank you

It states in the manual that cars should be considered new & unused for capital allowance purposes even where they are pre-registered, have delivery or test mileage on or have been used as a demonstration vehicle. https://www.gov.uk/hmrc-internal-manuals/capital-allowances-manual/ca23153

I am also seeking guidance on this matter, as I am looking at a demo-car that has only ever been registered to the dealer. However the answers above seem contradictory and confusing, can anyone clear this up for me? My understand according to CA23153 (Plant and Machinery Allowance (PMA): First Year Allowance (FYA): expenditure on electric cars and cars with zero carbon dioxide emissions) was that an ex-demo car with a couple of thousand miles on the clock, only ever regeristed to the dealer SHOULD class as unused. CA23153: "Meaning of 'unused and not second hand' You should accept a car is unused and not second hand even if it has been driven a limited number of miles for the purposes of testing, delivery, test driven by a potential purchaser, or used as a demonstration car. The fact that such cars (or cars that have not been driven at all) may have been pre-registered to a dealer does not prevent you from treating them as 'unused and not second hand.' " Does this mean that even if a demostrator car has some miles on it, if its only ever belonged to the dealership, it should qualify for 100% FYA ?

Hi lucy middleton,
As per CA23153 - Meaning of 'unused and not second hand'
You should accept a car is unused and not second hand even if it has been driven a limited number of miles for the purposes of testing, delivery, test driven by a potential purchaser, or used as a demonstration car, if your car meets this then it is an unused car.
Thank you.