Transferring a van to your business

I have set up my own window cleaning business. I have a van that I’ve owned for a couple of years, am I able to put it through the business? 

1st February 2016

Assuming there is business use of the van, yes you can transfer the van to the business and there is some tax relief available. The van would come across on your first day of trading at its market value.

If you originally bought it for your own personal use, (which it sounds like you did given you’ve owned it for a few years), the van will be eligible for the writing down allowance only each year, on a reducing balance basis. The writing down allowance is presently 18% for vans, because they are deemed to be plant and machinery.

It’s unlikely to apply, but if you purchased the van in anticipation of the business and it was more along the lines of pre-trading expenditure, it could qualify for the Annual investment Allowance (AIA). Under the AIA, you could have up to 100% tax relief on the market value.

In either instance, any claim would be restricted for any private use.

There are lots of planning points to consider surround the tax relief on cars and vans. If you would like to discuss your circumstances in more detail, contact us to be put in touch with your local TaxAssist Accountant. 

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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