The tax on the vehicle depends on how it is financed for example if the car is purchased on Hire Purchase it will only be the interest payments that are deemed a company expense.

There are capital allowances available to gain relief from purchasing a vehicle, which reduces the companies taxable profit, the allowances are based on the CO2 emissions of the vehicle.

There are different rules for purchasing Vans and motorcycles.

You can claim VAT on a vehicle

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