Are you interested in classic cars? Buying classic cars through your limited company can be really tax efficient. If the car’s market value is less than £15,000 when you purchase it, and it’s over fifteen years old, the taxable benefit will be based on the original list price of the car when it was new, which in today’s terms could be really low. For example, a 1979 Triumph Spitfire’s list price was approximately £3,000.
A low taxable benefit will mean a low income tax charge. Of course, owning the car though the limited company would mean that in addition to claiming some capital allowances on the costs, you will also be able to claim corporation tax relief on all its insurance and maintenance costs. Please contact us if you would like more information.