Over 15 years old and under £15k

[Lefty Guns]

I understand that a classic car can be a pretty tax efficient thing to run through a Ltd Co.

Apparently it has to be over 15 years old and cost under £15k before the car tax will be calculated on it's new price rather than its current market value.

It dopesn't really matter what condition the car is so you could spend £14k on something built in, say 1970, needing a complete restoration, spend £25k restoring it and still pay company car tax based on its new price in 1970. The restoration costs along with all general maintenance and opther running costs would all be tax deductable and rather a nice way of getting money out of the company.

This has got me thinking!

Any suggestions? The car would basically be a toy, used for low mileage, fair weather.

I'm thinking an Elan might be rather nice...

[Lefty Guns]

This is nice too though:

http://www.pistonheads.co.uk/sales/1189340.htm

[shirt]

308gtb4?

[UpTheIron]

Lefty Guns said:

I understand that a classic car can be a pretty tax efficient thing to run through a Ltd Co.

Apparently it has to be over 15 years old and cost under £15k before the car tax will be calculated on it's new price rather than its current market value.

It dopesn't really matter what condition the car is so you could spend £14k on something built in, say 1970, needing a complete restoration, spend £25k restoring it and still pay company car tax based on its new price in 1970. The restoration costs along with all general maintenance and opther running costs would all be tax deductable and rather a nice way of getting money out of the company.

This has got me thinking!

Any suggestions? The car would basically be a toy, used for low mileage, fair weather.

I'm thinking an Elan might be rather nice...

I believe the tax is calculated on market value, not your purchase price...so an expensive restoration could be problematic. Looked into this myself and the Elan is the obvious choice.

[Sharknose]

This looks lovely:

http://www.pistonheads.com/SALES/1233007.htm

They are a stylish, fast, practical and depreciation-proof classic with a fantastic engine.
Not many really good ones left in the UK though so they can command high prices.

[Compo_Simmonite]

http://www.hmrc.gov.uk/guidance/480.pdf
page 29 section 12.17 & 12.18

It's a long time since I finished work but you are right according to the information above.
There are changes planned for later years and I don't know if classic cars are included.

Paul H (retired Reveune Officer for H M Inspector of Taxes !)

[braddo]

How about an Alfa Guilia GTV - this one is sold but you shows you can a quick and sorted one for under 15k:

http://www.alfaholics.com/cars_for_sale_menu/road_...

[Lefty Guns]

That alfa is lovely.

I'm going to have a hunt through the classifieds this morning to see what american muscle will meet the criteria.

Anyone know what the new list price of a late '60's elan was?

[CrisW]

If you're thinking to drive it every day then one of the Zetec conversions for the Elans might be worth a sniff.

[Darkslider]

Just scrapes in to your criteria, I mean really, is there a better car than this?



http://www.pistonheads.com/sales/1238760.htm

[Lefty Guns]

Cossie's not a bad call actually but the new list price would still have been about £20k so sort of missing the point. Same could be said of the Ur quattro I guess.

A sixties/seventies car seems the best bet

911
Elan
Mustang
Vette
Alfa GTV

Edited by Lefty Guns on Friday 11th September 11:32

[shirt]

this would be ideal:

http://www.castlesportscars.co.uk/used-cars/view/1...

[BoRED S2upid]

911.

[300bhp/ton]

Huge chioce in this price range.

If you want a Yank then a 70s Trans Am or Camaro may fit the bill or a 60s Mustang.

[LuS1fer]

My mate has just bought this with 28500 documented miles on the clock. Looking for cars normally off people's radar pays off.

http://www.mocgb.net/forums/showthread.php?t=29457

[Lefty Guns]

I kinda like this:

http://www.pistonheads.co.uk/sales/1182371.htm

Nice basis for a fast-road/occasional-track car...

[austin]

CrisW said:

If you're thinking to drive it every day then one of the Zetec conversions for the Elans might be worth a sniff.

Are they only for the +2?

Liking the idea for a "normal" Elan.

Also not sure why this thread moved to GG from Classics???

[Darkslider]

Lefty Guns said:

Cossie's not a bad call actually but the new list price would still have been about £20k so sort of missing the point. Same could be said of the Ur quattro I guess.

A sixties/seventies car seems the best bet

911
Elan
Mustang
Vette
Alfa GTV

Edited by Lefty Guns on Friday 11th September 11:32

Doh, my bad for not reading the thread properly, had assumed you meant second hand value rather than new purchase price.

Buy one anyway!

[shirt]

Lefty Guns said:

I kinda like this:

http://www.pistonheads.co.uk/sales/1182371.htm

Nice basis for a fast-road/occasional-track car...

love that, but i thought these were a lot more than the asking price? I'd have that over pretty much anything else if its an honest car.

btw - i remember there was an article in octane a few issues ago [column on to the US auction page] about tax implications of classics and company ownership.

[havoc]

http://www.pistonheads.com/sales/1237754.htm

...looks like a rather good idea...if you return it closer to standard (at least put some smaller/better-looking wheels on it!).

...although you'll probably need the tax relief to help with the repair and maintenance costs you'll likely encounter!

Edited by havoc on Friday 11th September 16:05