Get some proper advice

The test for run of the mill expenses is "wholly, necessarily and exclusively" for business use.

For capex it's a bit more complex and usually the thinking is you take some cash off your balance sheet and replace that cash with an asset worth the cash you paid for it on your balance sheet (so no tax implications at all) - BUT then the value of that asset depreciates with time so it "costs" you X%, in the case of a car I think 18% is right, of its value each year and you write down your net book value by that amount and claim that against your corporation tax/income tax (I don't know if you're Schedule D or run a LtdCo).

However as an incentive for less polluting vehicles the tax treatment can be different and sometimes you can "amortise" the whole cost in just one year - so treating the purchase like a run of the mill expense.

The extent to which the Revenue would seek to apply the "wholly, necessarily and exclusively" is not clear to me in these circumstances and I'd strongly advise you get professional advice.

I am not an accountant, or a lawyer.

Posted By: Old Man, Apr 23, 19:48:30