Restoring Cars as a venture
Discussion
Whilst we have several different ventures here such as storage & handling, renting out offices and warehouses etc, my accountant (who knows of my car and bike habits) has suggested that it might be an idea to consider buying cars, restoring them and driving them for a few months (whilst marketing them) selling them and then moving on to the next project.
I don't think that he expects me to make much money in this, just that it might feed my habit for a while.
I'd have to use a qualified mechanic and/or bodyshop type of person, because I couldn't do it myself but is it feasable and does anyone else do something similar on here please?
I don't think that he expects me to make much money in this, just that it might feed my habit for a while.
I'd have to use a qualified mechanic and/or bodyshop type of person, because I couldn't do it myself but is it feasable and does anyone else do something similar on here please?
Why bother unless you can make money out of it. Debateable if you have to hire someone to do the restoration work.
If it makes losses, you could, perhaps, offset losses from the car venture against your other trading profits for tax purposes - although the Inland Revenue can (and do) challenge ventures which seem to be more in the way of a loss making hobby than a bona fide trade.
If it makes losses, you could, perhaps, offset losses from the car venture against your other trading profits for tax purposes - although the Inland Revenue can (and do) challenge ventures which seem to be more in the way of a loss making hobby than a bona fide trade.
I did make a couple of grand on each of my last two toys, a Dino 308 GT4 and a Jaguar based Kougar.
The problem is that I get bored with a car so quickly and am literally looking for my next one as I'm driving home in the new one. I really think that I'm driving the wife and accountant mad at present.
It might just be a way of feeding my habit without actually costing me or the company very much.
I'd like it to be profitable but, because of using mechanics etc., doubt that it would make much.
Some might and some might not.
The problem is that I get bored with a car so quickly and am literally looking for my next one as I'm driving home in the new one. I really think that I'm driving the wife and accountant mad at present.
It might just be a way of feeding my habit without actually costing me or the company very much.
I'd like it to be profitable but, because of using mechanics etc., doubt that it would make much.
Some might and some might not.
Trading your non-business car is usually ignored for tax purposes (it's not real "trade" and not included in Capital Gains Tax legislation either). However, if you engage in a transaction or a series of transactions which would lead a "reasonable man" to assume you were trading, then you ARE trading - and the Inland Revenue will want to know (within very specific time limits too.
If you are dealing in rare or valuable cars, if not trading, you could THEN be caught under CGT rules - especially if you were making profits on each transaction and the vehicles were rare types such as historic or famous ex-racing cars.
If you are dealing in rare or valuable cars, if not trading, you could THEN be caught under CGT rules - especially if you were making profits on each transaction and the vehicles were rare types such as historic or famous ex-racing cars.
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