UK tax questions

Markc

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Hi please go easy on me as it’s my first post. Currently have a used 991 turbo (gen2).

I’m thinking about purchasing a Taycan using a 2 yr PCP to underwrite the value at the end of the term then I have the option of ‘flipping’ the car if there is equity (putting in max deposit, reduce finance costs and setting the balloon as high as possible).

If purchasing using a PCP are you better to get a Turbo (which has more toys as standard) than say spec’ing up a 4s, as I would imagine the residual value is better?

At the end of the term when the car is sold are you taxed on the sale price as income?

For 21/22 can you still get 100% relief against corporation tax?

We wouldn’t be VAT registered as we are in healthcare sector. So they wouldn’t make any difference.

Many thanks
Mark
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GlasgowTaycanCT

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Hi please go easy on me as it’s my first post. Currently have a used 991 turbo (gen2).

I’m thinking about purchasing a Taycan using a 2 yr PCP to underwrite the value at the end of the term then I have the option of ‘flipping’ the car if there is equity (putting in max deposit, reduce finance costs and setting the balloon as high as possible).

If purchasing using a PCP are you better to get a Turbo (which has more toys as standard) than say spec’ing up a 4s, as I would imagine the residual value is better?

At the end of the term when the car is sold are you taxed on the sale price as income?

For 21/22 can you still get 100% relief against corporation tax?

We wouldn’t be VAT registered as we are in healthcare sector. So they wouldn’t make any difference.

Many thanks
Mark
Hi Mark

it really depends on whether the Turbo has everything you want as I suspect you will be adding options onto the Turbo aswell which will push the price up.

When you sell, you would not be taxed for income because you've made a loss. There is no income.

Whether you get relief against your corporation tax can be dependant upon the nature of your business. You are in the healthcare sector. Therefore it is unlikely you will legitimately get 100% relief.

Cheers
 

Persuader

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Hi please go easy on me as it’s my first post. Currently have a used 991 turbo (gen2).

I’m thinking about purchasing a Taycan using a 2 yr PCP to underwrite the value at the end of the term then I have the option of ‘flipping’ the car if there is equity (putting in max deposit, reduce finance costs and setting the balloon as high as possible).

If purchasing using a PCP are you better to get a Turbo (which has more toys as standard) than say spec’ing up a 4s, as I would imagine the residual value is better?

At the end of the term when the car is sold are you taxed on the sale price as income?

For 21/22 can you still get 100% relief against corporation tax?

We wouldn’t be VAT registered as we are in healthcare sector. So they wouldn’t make any difference.

Many thanks
Mark
Yes you can still get 100% relief in 21/22.
When you sale there is a reverse CGT charge based on the sale price sort of like a Capital Gain Income. If you are then subsequently buying another electric car (assuming 100CGT allowance is still allowed for electric cars) then this reverse charge dosen't matter as the new purchase will more than offset it.
If you don't want the hassle of a future reverse CGT charge based on sale price then don't claim the full 100% in the first year as you can claim any % up to 100%. In subsequent years you can claim 18% per annum if you haven't claimed full allowance in the 1st year/full amount of car value yet. I for example am claiming 25% against CGT in 1st year as all things considered that is what is best for me.
Being VAT registered or not makes no difference to any of this.
What Business sector you are in also makes no difference.
Hope this helps.
 
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Markc

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Yes you can still get 100% relief in 21/22.
When you sale there is a reverse CGT charge based on the sale price sort of like a Capital Gain Income. If you are then subsequently buying another electric car (assuming 100CGT allowance is still allowed for electric cars) then this reverse charge dosen't matter as the new purchase will more than offset it.
If you don't want the hassle of a future reverse CGT charge based on sale price then don't claim the full 100% in the first year as you can claim any % up to 100%. In subsequent years you can claim 18% per annum if you haven't claimed full allowance in the 1st year/full amount of car value yet. I for example am claiming 25% against CGT in 1st year as all things considered that is what is best for me.
Being VAT registered or not makes no difference to any of this.
What Business sector you are in also makes no difference.
Hope this helps.
That’s heresy thank you ??
 


mikeyyn

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Yes you can still get 100% relief in 21/22.


Persuader, are you sure we can still get 100% first year write down after 31st March? I can't find confirmation elsewhere, but I hope you are right. I am hoping to get my 4S in the next few days but if installation of the new software puts a delay in the delivery its getting a little close.
 

Persuader

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Persuader, are you sure we can still get 100% first year write down after 31st March? I can't find confirmation elsewhere, but I hope you are right. I am hoping to get my 4S in the next few days but if installation of the new software puts a delay in the delivery its getting a little close.
100%
 


Mylam

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Help please

I’m getting a Cross T as a company car as UK tax on electric company cars is basically nothing

company will pay for a pretty basic car on a 3 year lease,

does anyone know if a contribution made by me as salary sacrifice would be from gross or net pay??
 

Persuader

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Help please

I’m getting a Cross T as a company car as UK tax on electric company cars is basically nothing

company will pay for a pretty basic car on a 3 year lease,

does anyone know if a contribution made by me as salary sacrifice would be from gross or net pay??
If it's a properly set up salary sacrifice scheme then it's Gross.
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