Personal plates

A few years ago my firm was appointed to act for a local finance company which is called Cook Finance Co Ltd and also to act on behalf of its director/majority shareholder Alan Bertram Cook. 

Mr Cook has a company car and the business has also just purchased a car registration plate which is ‘123 ABC’.

The cost of the plate was substantial and Mr Cook is suggesting that this should be a business expense on the basis that he is well known in the local community and this number plate is effectively advertising for the company.

I am not entirely convinced by this argument and would appreciate readers’ thoughts here.

Can the company recover the VAT input tax and make a claim for say capital allowances or other tax relief on this cost or how exactly should this be treated? And is there a...