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OWN FUNDS
Introduction
The use of the company’s wealth to purchase
the vehicle outright. Thus ownership is gained from
day one.
How it works
Full balance is paid to the dealership on receipt
of the vehicle.
Benefits
• Outright ownership
• No monthly payments
Disadvantages
• Reduces working capital
• Owner bears depreciation
• Full risk taken by owner
Business Tax
Under outright ownership a business is entitled
to offset 25% of the cars value per year against
taxable profits, to a maximum of £3000 per
year. Commercial vehicles are treated in the same
way, but no upper limit applies. This is known as
the “Written Down Allowance”.
VAT Implications
There are no VAT benefits, unless the vehicle is
a commercial, whereby 100% of the VAT is reclaimable.
This information is correct
at time of publication December 2006.
Platinum is a part
of Renrod Ltd.
Renrod Ltd is authorised and regulated by the Financial
Services Authority. Please ask for full terms and
conditions.
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