Personalised Number Plates

I run a small private hire car company, and want to buy personalised numbers plates for each vehicle. What is the tax position for my company?

1st September 2008

For the expendiutre on the number plates to be allowable for tax purposes you will need to justify that there is a benefit to the trade in having such a number plate. If you can, then the company will be able to claim amount you spent on acquiring the right to use the number as an intangible asset.

From April 2002, companies are entitled to tax credits at a minimum of 4% per annum or the depreciation rate applicable to the generally accepted accounting life of the asset if that is greater.

The actual amount spent on the physical plastic number plate is treated as part of the cost of the car and receives plant and machinery capital allowances as normal.

By Jo Nockels

Disclaimer: The information provided is based on current guidance (at date of publication) from HMRC and may be subject to change. Any advice shared here is intended to inform rather than advise. Taxpayer's circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this information, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.

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