Classic company car?

[jimmyjam]

The company car will be up for renewal soon. My company tend to buy them at 1-2 years old, run them for 3-4 years and flog on. This time around I thought I might investigate talking them into a semi classic, possibly an R107 Merc. I already have a weekend toy but hanker after a convertible that can handle 10-15k p.a. Are there tax benefits to my employer or I? Need to build my case!

[a8hex]

I think it depends on the value of the car. I can't remember the details, but I know when I was buying my XK150 the accountant mentioned various things, but the XK was more valuable than the upper limit where these schemes worked.

[//j17]

Company car tax is based on the new purchase price of the vehicle, so buy a new BMW Z4 Convertable and you get taxed on it's £30,000 purchase price. Run a 1973 Triumph TR6 (similar 6-cylinder, 2-seat convertable) and you get taxed on it's £3,500 purchase price.

[DickyC]

Some of the directors of Virgin did it years ago. Branson ran Bristols if I remember right.

[a8hex]

At the top end I think it is normally done to avoid/limit depreciation.
Your typical borg-mobile has rocket power value loss.

[Shed_Jensen]

Hi Jamie,

Have a look here;

http://www.pistonheads.com/xforums/topic.asp?h=0&a...

And here;

www.pistonheads.com/gassing/topic.asp?h=0&f=23...

It can work out quite well, however the group of cars that fall into the relevant bracket (has to be over 15 years old and worth less than £15k) AND you'd be happy driving everydat AND have a low initial purchase price is quite narrow (low purhcase price = to make it worthwhile from BIK tax point of view)

Cheers,

Steve

Edited by Shed_Jensen on Friday 13th February 08:35

[jimmyjam]

Thanks Steve. The over 15 years and under £15k guideline is fine with an R107 but I think I'll be scuppered with the original value as I would imagine it was reasonably high. Anyway, its food for thought.

[AJAX50]

I assume you can off-set repairs and maintenance costs against tax. It's a fine line between repairs and restotration.

[//j17]

DickyC said:

Some of the directors of Virgin did it years ago. Branson ran Bristols if I remember right.

I'm now fighting a very disturbing mental image involving Richard Branson's lovelly pair of Bristols...

[DickyC]

//j17 said:

DickyC said:

Some of the directors of Virgin did it years ago. Branson ran Bristols if I remember right.

I'm now fighting a very disturbing mental image involving Richard Branson's lovelly pair of Bristols...

Don't get in a pickle now.

[a8hex]

AJAX50 said:

I assume you can off-set repairs and maintenance costs against tax. It's a fine line between repairs and restotration.

Yes all costs can be written off so long as you can sit there with a straight face and tell the taxman that its value is still less than 15K. So a 35K engine rebuild in your Aston might prove a little difficult to swing, but most stuff is OK. I understand their are a lot of interesting cars valued at 15K