Hmmm.....just had this from my accountant... If you choose a classic car as your company vehicle, with a market value of less than £15000 and low original list price, then you can get to drive the car for next to nothing with all expenses paid by the company. i.e. An E type Jaguar from the late 60's with an original list price of £2000 IF you could purchase it for less than £15000 would attract a scale charge of £700 (£35% x £2000) and tax therefore of £280 )40% x £700) So now I need the original list price of a 512BB, 308, DB5 etc etc etc...I think you can see where this is going here.....
From http://www.hmrc.gov.uk/guidance/480.pdf Steps 1-3 are varied in the case of a classic car whose list price is low compared with its current value. A classic car is: • 15 years old or more at the end of the year of assessment, and • with a market value for the year of £15,000 or more, and • that market value exceeds the amount carried forward from Step 3 above. When all the above conditions are met, substitute the market value of the classic car for the year less any capital contribution for the amount otherwise carried forward from Step 3 above.
Franny, for Adams benefit would you be good enough to put some pics up of cars that meet the criteria Whilst you are doing this i will help you on your pm
