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bigduckontax
bigduckontax, Accountant
Category: UK Tax
Satisfied Customers: 2993
Experience:  FCCA FCMA CGMA ACIS
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I have a Motorhome rental business, my last accountant

Customer Question

I have a Motorhome rental business, my last accountant advised that I could get capital allowance against the purchase price, my new accountant has said I do not. Can you please advise
JA: The Accountant will know how to help. Please tell me more, so we can help you best.
Customer: I have bought 2 additional motorhomes to help believing I would not have to pay corp tax but my accountant says I do
JA: When we are ready I'll take you to the appropriate web page.
Customer: Sorry typed help instead of hire
JA: Is there anything else the Accountant should be aware of?
Customer: My previous accountant deducted the cost of my previous motorhomes in my annual accounts and corp tax which was accepted by HMRC
JA: OK. Got it. I'm sending you to a secure page on JustAnswer so you can place the $5 fully-refundable deposit now. While you're filling out that form, I'll tell the Accountant about your situation and then connect you two.
Submitted: 5 months ago.
Category: UK Tax
Expert:  bigduckontax replied 5 months ago.

Hello, I a,m Keith, one of the experts on Just Answer, and pleased to be able to help you with your question.

Provided it is rented out for more than 105 nights in a year then capital allowances are available. Unfortunately for you the vehicle is classed as a car so only writing down allowances at 18% are appropriate. You can write off the vehicle at 18% per annum on a reducing balance basis. The CA regime is the same for individuals or companies. The relevant Gov UK guidance can be found here:

https://www.gov.uk/work-out-capital-allowances/rates-and-pools

I do hope that you have found my reply of assistance.

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