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Can I run a classic car as a company car?
I am thinking about buying a 1989 Citroen 2CV as a company car, to take advantage of the Classic car rules. The car would cost around £7000 so would be well under the £15,000 limit. The list price was around £4000, so am I correct that I would only pay BIK against that, as I would pay for my private mileage? I have another vehicle, owned personally, so any serious mileage would be done by that.
Asked on 4 June 2019 by Iain Simpson
Answered by
Keith Moody
For tax purposes, a car more than 15 years old with a current market value greater than its original list price meets HMRC’s 'classic car' criteria.
The tax brackets are:
0 to 1400cc – 15%
1401 to 2000cc – 22%
Over 2000cc – 32%
Whether the percentage is applied to the list price of the vehicle when new or the current market value depends on its current market value. If the market value is more than £15,000 then the percentage is applied to the current market value. If the market value is £15,000 or less then the percentage is applied to the list price of the car when new.
The tax brackets are:
0 to 1400cc – 15%
1401 to 2000cc – 22%
Over 2000cc – 32%
Whether the percentage is applied to the list price of the vehicle when new or the current market value depends on its current market value. If the market value is more than £15,000 then the percentage is applied to the current market value. If the market value is £15,000 or less then the percentage is applied to the list price of the car when new.
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