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Posted Mon, 18 Apr 2022 13:59:24 GMT by jenn_boxheart
Hello This year my partner and I bought an EV. I use it around 50% of the time for work purposes. We put down a deposit of £4000 personal funds and are paying around £330/month. Can you tell me if the allowance is for my portion of: what has been paid for the car this year or the value of the car as sold? Is there an online page where this is explained? Thank you
Posted Fri, 22 Apr 2022 15:09:15 GMT by HMRC Admin 11
Assuming that you purchased the eletric car via a Hire Purchase type agreement, under which ownership of the vehicle passes to you automatically once all the payments are made (or the purchase option is at a nominal price).
You then can claim capital allowances on the original cost of the car, adjusted for non-trade use, as soon as it is brought into use for your trade. The interest or other charges can be claimed as business expenses.
HS252 Capital allowances and balancing charges 2022
Claim capital allowances
Thank you

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