SparkyTheT

The reply contains a link to the page on capital allowances, but this does not clarify the OP's question. Payments on a PCP (Personal Contract Purchase) or BCP (Business Contract Purchase) are purchase payments (not lease payments) and appear to qualify for the 100% First Year Allowance, but does this include *ALL* payments (often made over several years, and then a ballon final payment) or only payments *actually made in the first year*? An example: Say a car was purchased through a Ltd Company, for (say) £30,000, with a BCP 0% finance arrangment of £500 a month for 3 years (36 months) and a final optional 'balloon' payment at the end of 3 years of £12,000. What can be claimed as 100% First Year Allowance, and when? e.g. can the full price be claimed in the next tax return (write off £30,000 from corporation profit in the next tax return)? or can the first 12 monthly payments be claimed (write off £6,000 from corporation profit in the next tax return)? can subsequent years payments be claimed (e.g. write off £6,000 in following 2 tax returns?) can balloon payment be claimed (e.g. write off £12,000 in the 4th tax return, or at another point) what if the balloon payment is not made (do any earlier claims need to be repaid?)