Van Treatment in Capital allowance

[Dpower]

Hi

Can you please tell me how to treat a van that was purchased during 2015/16. The van cost £4800 and was purchased mid way through the period.

Am I correct in thinking that the van is to be classed in the general pool?

Thanks
Kelly

 

[Scalloway]

Yes vans are classed as plant and equipment.

 

[Dpower]

Is there a first year allowance amount that I can take? Also if purchased half way through the FY would I only be able to claim 6/12's of the the WDA?

Thanks

 

[Scalloway]

You can claim it all or any sum less than the total as Annual Investment Allowance (AIA) in the year of purchase. If you don't claim the full amount as AIA you can claim 18% of the reducing balance each year as Writing Down Allowance (WDA). More information here.

https://www.gov.uk/capital-allowances/annual-investment-allowance

 

[Dpower]

So £4800 can be written off in total then?

 

[Scalloway]

Yes. You can either do it in one go or over a period of years.

 

[Clare@ClarityTaxation]

You can reclaim the VAT on some vans too, if you were charged any (and if you're VAT registered, obvs).

http://www.rossmartin.co.uk/vat/971-vat-car-or-van