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Selling and buying of vehicle during the tax year

Posted 25 June 2015 under Tax Q&A
Annelie says:
16 June 2015 at 9:58

If you sell your car during the tax year and purchase a new vehicle, how is the claim for the new vehicle calculated and how is the recoupment calculated on the tax return?

This entry was posted in Tax Q&A and tagged , , . Bookmark the permalink.

TaxTim TaxTim says:
16 June 2015 at 10:15

If you make use of TaxTim to complete your tax return, the recoupment on the old vehicle (reversal of the capital allowances previously claimed) and the capital allowances on the new vehicle will be calculated automatically in the tax return, if all the information is together and ready for inputs. Using TaxTim you will not have to worry about where it goes or how it is calculated. Just follow the easy instructions, read the information carefully and ensure you have the information ready to input. Remember you only have to recoup on the old vehicle if you previously claimed capital allowances on the car. A capital allowance on a car is claimed over 3 years, starting from the first year the car was bought. And a capital allowance can only be claimed if the car was used for business purposes.

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