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Posted Tue, 09 Apr 2024 19:56:59 GMT by Anthony Umeadi
Dear HMRC, I’m looking towards buying an electric ex demonstrator car under my property limited company. I have reviewed HMRC documentation CA23153 and it states that: “ New cars are ‘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” My Questions are: 1) What number of miles is considered limited by HMRC to allow claim of 100% First Year Allowance on capital expenditure. 2) Is it allowable to purchase this electric ex demonstrator car on the property company name before the property starts generating revenue
Posted Wed, 17 Apr 2024 13:44:15 GMT by HMRC Admin 17

Hi ,
 
1) If the car has only ever been a demonstrator then we would generally accept it as new,
there is no specific number of miles that we would use.

2) If the car is being bought by the business as a business asset for use of the business then yes .

Thank you  .
Posted Wed, 17 Apr 2024 14:06:15 GMT by Anthony Umeadi
Dear HMRC Admin 17, Thank you for your very kind response. Furtherance to your answer, I need a little bit more clarification if you don’t mind. 1) What are you specific criteria for ex demonstrator car? Also noting that almost all ex demonstrator have been registered and have more than 1,000 roughly on it 2) Just to be clear can I buy an electric for business use for property company which I the company has not started trading or even bought a property yet. If Yes, then can I how do I deduct the price of the car once the property starts yielding revenue. 3) Am I still entitled to claim of 100% First Year Allowance on capital expenditure on the electric Car if I buy it with a) PCP or b) Personal Loan as I do not have the funds to purchase the car outrightly in advance without a payment plan which for both options will take up to 5 years to complete payment
Posted Fri, 03 May 2024 08:27:12 GMT by HMRC Admin 25
Hi Anthony Umeadi,
An ex demonstrator car would be classed as a 2nd hand car.
For what/how to claim, please refer to:
Claim capital allowances.
Thank you. 

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