- This topic has 4 replies, 3 voices, and was last updated 5 years ago by
.
- Posts
Because they’re classed as a wasting asset – ie they have a life of less than 50 years.
However, classic cars can sometimes be kept longer than that and often go up in value over time, so people do buy them as tax free investments.
Further to the above, which is all correct and true, if cars were treated as taxable, this would generally result in capital losses being claimed as most cars lose value over time.As these losses could be set against gains this might well result in government losing revenue.
what about a car used for business purposes?
or a car that was bought and sold for less than £6,000
(these are conditions which is an exception to the general rule for wasting chattels that wasting chattels are exempt from Capital gains tax)
thank you
- You must be logged in to reply to this topic.