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Taxi, van or car

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08 February 2011
Issue: 4291 / Categories: Forum & Feedback
Hackney carriages are eligible for the annual investment allowance, but is this true of all types of taxi?

I have been advised (informally) by HMRC that for the annual investment allowance (AIA) a taxi must be purpose built and must have come off a production line as a taxi.

Hence only traditional London cabs (LTI Limited) qualify. I realise that saloon car taxis do not qualify.

However I have a number of clients who use converted vans as taxis (the specification is very similar to traditional London cabs e.g. Renault Trafic etc.). On the log book these are described as cars.

Because they have a high CO2 rating (above 160g/km) they only qualify for the 10% writing-down allowance and if replaced with a similar vehicle there is no subsequent balancing allowance.

Do readers believe we should be able to claim full AIA for these converted vans?

Query 17 743 – Taximan

Reply from Geekophile

The annual investment allowance (AIA) may...

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