Is my accountant doing this right?

[fridaypassion]

So our business is pretty diverse we operate car sales and product design and manufacturing for the cars we sell.

Last year I bought a car new its a car not a commercial vehicle. Its owned by the business registered to the business. The use of it is for R&D and promotional work.

In my accounts I was hoping for a full cost write down but the accountant is saying we can only depreciate it as stock is this right? It isn't "stock" I would hope it would be treated more as plant in the books.

It obviously makes quite a difference to our corporation tax bill which is already horrific! Is he right?

[Eric Mc]

Was it bought with resale as the prime objective or was it bought for long term (over one year) ownership?

[fridaypassion]

Should be permanent resident Eric

[paddy1970]

It is dependent on the car's CO2 emissions. The more it pollutes, the less you can deduct.

[Spinner20]

EV’s you can have a full tax write off but not ICE.

If an ICE car might have been better to lease as full cost can be written off.

[Eric Mc]

It sounds like it should be treated as a "Fixed Asset" and not an item of "Stock for Resale".

From an annual accounts point of view, the relevant depreciation charge should be made (based in the company's depreciation policy).

From a tax point of view, Capital Allowances will be available - and the allowances claimed will be based on the nature of the vehicle.