• Contact us
  • About us
  • Digital edition
  • Online archive
Tuesday, June 3, 2025
Cumberland and Westmorland Herald
  • News
    Multiple fire crews tackle roof fire in Crosby Ravensworth

    Multiple fire crews tackle roof fire in Crosby Ravensworth

    Free domestic abuse support drop-in service launches in Penrith

    Free domestic abuse support drop-in service launches in Penrith

    Penrith bar relaunched with vibrant events planned

    Penrith bar relaunched with vibrant events planned

    Penrith Beacon access closed after vandalism

    Penrith Beacon access closed after vandalism

    Fire crews spend six hours tackling blaze at timber firm’s headquarters

    Fire crews spend six hours tackling blaze at timber firm’s headquarters

    £15 million luxury care home plans for Penrith

    £15 million luxury care home plans for Penrith

    Changes to business rates

    Changes to business rates

    Tesco Express opens doors in Penrith

    Tesco Express opens doors in Penrith

    Nursing award for Penrith’s Fay Dudson

    Nursing award for Penrith’s Fay Dudson

  • Sport
    Penrith teen crowned British vault champion

    Penrith teen crowned British vault champion

    Penrith gymnasts represent North of England in finals

    Penrith gymnasts represent North of England in finals

    New boss revealed for Penrith AFC

    New boss revealed for Penrith AFC

    Penrith Panthers celebrate winning season

    Penrith Panthers celebrate winning season

    Darren Edmondson leaves Penrith AFC

    Darren Edmondson leaves Penrith AFC

    Lucy plays key role in county T20 triumph

    Lucy plays key role in county T20 triumph

    Gold for Keith in annual festival of orienteering

    Gold for Keith in annual festival of orienteering

    Cumberland and Westmorland wrestlers head to European championships

    Cumberland and Westmorland wrestlers head to European championships

    Kirkby Stephen Hockey Club win league title

    Kirkby Stephen Hockey Club win league title

  • Obituaries
  • Nostalgia
  • Online archive
  • Buy Photos
  • Buy your paper
  • North Lakes Living
No Result
View All Result
Cumberland and Westmorland Herald
  • News
    Multiple fire crews tackle roof fire in Crosby Ravensworth

    Multiple fire crews tackle roof fire in Crosby Ravensworth

    Free domestic abuse support drop-in service launches in Penrith

    Free domestic abuse support drop-in service launches in Penrith

    Penrith bar relaunched with vibrant events planned

    Penrith bar relaunched with vibrant events planned

    Penrith Beacon access closed after vandalism

    Penrith Beacon access closed after vandalism

    Fire crews spend six hours tackling blaze at timber firm’s headquarters

    Fire crews spend six hours tackling blaze at timber firm’s headquarters

    £15 million luxury care home plans for Penrith

    £15 million luxury care home plans for Penrith

    Changes to business rates

    Changes to business rates

    Tesco Express opens doors in Penrith

    Tesco Express opens doors in Penrith

    Nursing award for Penrith’s Fay Dudson

    Nursing award for Penrith’s Fay Dudson

  • Sport
    Penrith teen crowned British vault champion

    Penrith teen crowned British vault champion

    Penrith gymnasts represent North of England in finals

    Penrith gymnasts represent North of England in finals

    New boss revealed for Penrith AFC

    New boss revealed for Penrith AFC

    Penrith Panthers celebrate winning season

    Penrith Panthers celebrate winning season

    Darren Edmondson leaves Penrith AFC

    Darren Edmondson leaves Penrith AFC

    Lucy plays key role in county T20 triumph

    Lucy plays key role in county T20 triumph

    Gold for Keith in annual festival of orienteering

    Gold for Keith in annual festival of orienteering

    Cumberland and Westmorland wrestlers head to European championships

    Cumberland and Westmorland wrestlers head to European championships

    Kirkby Stephen Hockey Club win league title

    Kirkby Stephen Hockey Club win league title

  • Obituaries
  • Nostalgia
  • Online archive
  • Buy Photos
  • Buy your paper
  • North Lakes Living
No Result
View All Result
Cumberland and Westmorland Herald
No Result
View All Result
Home Farm and Countryside
This article appears as part of a paid partnership with Armstrong Watson

Tax relief on farm vehicles for farming partnerships and sole traders

By Dan Cozens, accounting manager, Armstrong Watson

by CWH
10 April 2024
in Expert advice, Farm and Countryside
A A
Share on FacebookShare on Twitter
Dan Cozens, of Armstrong Watson

Following the Government’s recent U-turn on the tax treatment of Double Cab Pick Ups (DCPU), it’s worth reminding ourselves of the tax relief available on vehicles in a farming business.

U-turn on Double Cab Pick Ups

The Government had introduced guidance that all DCPUs would be classified as cars rather than commercial vehicles from 1 July 2024.

However, having listened to the views of farmers and other industries, the guidance was quickly reversed, meaning DCPUs with a payload of one tonne or more would still be classed as commercial vehicles and those with a payload of less than one tonne would continue to be treated as cars for tax purposes.

Agricultural vehicles

Vehicles such as tractors and quad bikes continue to qualify for Annual Investment Allowance (AIA). The AIA allows the business to deduct the total value of the qualifying purchase from their taxable profits in that tax year up to the current limit of £1 million.

Commercial vehicles

Commercial Vehicles such as Single Cab Pickups and DCPUs with a payload of one tonne or more will continue to qualify for Annual Investment Allowance as above, providing the asset is used for 100% business use.

Where the asset has a mix of business and private usage the business may only claim the business element of the AIA. For example, if a farmer purchases a DCPU for £25,000 and its use is 50% business and 50% private – only £12,500 (50% of purchase price) would be allowable to deduct from their taxable profit.

Cars

Cars do not qualify for the AIA, instead, there are other capital allowances available based on carbon dioxide emissions:

  • New and unused with CO2 emissions of 0g/km – 100% first-year allowance
  • ·Second-hand electric car – 18% of the car’s value
  • Cars with CO2 emission of 50g/km or less – 18% of the car’s value
  • Cars with CO2 emissions over 50g/km – 6% of the car’s value

As for commercial vehicles, any car that has private use would require a private use adjustment, reducing the amount of capital allowances available.

For the majority of cars, there is little tax relief in the year of purchase with most of the relief deferred until the vehicle is sold.

The capital allowances are claimed over the useful life of the vehicle leaving the tax written down value (TWDV).

On the sale of the car, if the value is lower than the TWDV, the difference, known as a balancing allowance, can be offset against taxable profits.

Equally, if the car sells for more than the TWDV, a balance charge is incurred which effectively takes back some of the tax relief claimed in earlier years.

If you would like advice and support when considering vehicle purchases in your business, please get in touch by emailing help@armstrongwatson.co.uk or call 01768 222030.

Related Posts

Sheep showing season begins
Farm and Countryside

Sheep showing season begins

30 May 2025
Changes to business rates
Expert advice

Changes to business rates

25 May 2025
Turning 75: the impact on tax-free cash, pension tax relief and death benefits
Expert advice

Turning 75: the impact on tax-free cash, pension tax relief and death benefits

18 May 2025
Appleby Show team rallies round as treasured event under threat
Farm and Countryside

Appleby Show team rallies round as treasured event under threat

16 May 2025
National honour for former Penrith mart manager
Farm and Countryside

National honour for former Penrith mart manager

9 May 2025
Rethink your password in light of recent cyber attacks
Expert advice

Rethink your password in light of recent cyber attacks

8 May 2025
No Result
View All Result

Stay connected

Facebook Twitter Instagram

Most popular

Free domestic abuse support drop-in service launches in Penrith

Free domestic abuse support drop-in service launches in Penrith

30 May 2025
Penrith teen crowned British vault champion

Penrith teen crowned British vault champion

30 May 2025
Penrith bar relaunched with vibrant events planned

Penrith bar relaunched with vibrant events planned

30 May 2025
Penrith Beacon access closed after vandalism

Penrith Beacon access closed after vandalism

30 May 2025
Multiple fire crews tackle roof fire in Crosby Ravensworth

Multiple fire crews tackle roof fire in Crosby Ravensworth

30 May 2025
Sheep showing season begins

Sheep showing season begins

30 May 2025
Cumberland and Westmorland Herald Logo

33 Middlegate
Penrith
Cumbria
CA11 7SY

Phone: 01768 862313
Email: news@cwherald.com

Registered in England as Barrnon Media Limited. No: 12475190
VAT registration number: 343486488

Explore

  • News
  • Sport
  • Farming
  • Property
  • Obituaries
  • Nostalgia
  • Your view

Useful links

  • Contact us
  • Photosales
  • Online archive
  • Buy your paper
  • Digital edition
  • North Lakes Living
  • Advertise
  • About us

Follow us on

© Barrnon Media Limited 2020

Terms & Conditions / Privacy Policy / Cookie Policy

This website and its associated newspaper are members of the Independent Press Standards Organisation
IPSO Logo
Review Your Cart
0
Discount
Add Coupon Code
Subtotal
Total Installment Payments
Bundle Discount
Checkout

 
0
No Result
View All Result
  • Home
  • News
  • Sport
  • Obituaries
  • Nostalgia
  • Online archive
  • more
    • North Lakes Living
    • Buy Photos
    • Buy your paper
    • About us
    • Contact us

© 2020 Cumberland & Westmorland Herald