Tax trade-in

I have a client who is the 100% shareholder and sole director of his own cash-rich limited company. He currently owns his car privately and it is worth about £10 000.

He does very little business or personal mileage and goes everywhere by train so his 40p per mile claims to the company are very limited. He would like to trade in this vehicle to generate private cash and then buy a car within his company.

He doesn’t mind what car he drives his aim being to reduce his tax bill as much as possible.

With all the changes to company car taxes in recent years and CO2 emission issues do readers have any suggestions about how he should proceed?

Or is his best option simply to buy another car privately perhaps a small model for about £5 000 where he can generate...