Tax Computation Vehicle

[kashiscash]

I am computing my tax liability. I am a sole trader. I bought the van in June 2009 for £6500. I am using this van for business purpose only. I would like to know that while computing my tax liability, how can I treat this van and how much allowance shall I deduct from my tax liability. If you can reply to this answer with an example of computation, that would be great. Thanks.

[Jaykay]

You can currently claim 100% Annual Investment Allowance which is the fancy name for Capital Allowances / First Year Allowance .

So, Cost 6,500
AIA 6,500
C/f Nil

And there's the catch. You can claim 100% now and then there is nothing to claim next year. That means that your tax bill goes down this year and up next year.

Cheers.