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Van leasing

14/05/2019 06:47:30
Hi. I have a 3 year leasing agreement for my van, which is used entirely for my work. Should my leasing costs be classed as motoring / vehicle expenses, or something else ?. If I calculate my motoring expenses using the mileage method I can't add my leasing expenses to it , or so I believe?
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Re:Van leasing

14/05/2019 10:10:44
Hi

Are you using Cash Basis or Traditional Accounting ? If you are using the Cash Basis then you will not be able to claim Capital Allowances for anything except cars. You can use the Simplified Expenses which is a fixed rate deduction which covers leasing so you cannot make a separate claim. Please refer to the following link:

BIM 75005

If you are using the Traditional Method then you may be able to claim Capital Allowances along with any other expenses for the van. Please again refer to the following links:

BIM 545351

CA 23310

HS252


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Van leasing

15/05/2019 10:03:21
This refers to leasing not lease purchases. Capital allowances do not come into play. It is motor expenses.
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Re:Van leasing

15/05/2019 10:05:35
Hi.

Based on the information provided the information is correct as I was not aware of the type of lease the individual had.

It may have been a Finance Lease, Cash Basis or an Operating Lease of which then they can claim Annual Investment Allowance which is a Capital Allowance.

Vans purchased under a finance lease or cash basis are Plant and the Annual Investment Allowance which is a Capital Allowance and is due subject to any personal use.

Vans secured under an operating lease are rental vans. They can claim the monthly rental subject to any private use restriction.

If the individual chooses to pay the balloon payment at the end of the contract and bought the van then he can claim the Annual Investment Allowance on the value subject to any private use restriction.

Please refer to the following links:

Business Income Manual 45355

Business Income Manual 45351

Business Income Manual 00215

Business Income Manual 00205

Business Income Manual 70040

Capital Allowances Manual 23081

Capital Allowances Manual 23084

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