Owner Thoughts/Experience?

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scm
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Re: Owner Thoughts/Experience?

Post by scm » Mon Apr 15, 2019 12:13 pm

RJUK wrote:
Mon Apr 15, 2019 11:12 am
Also, I don't think the capital gains tax thing is as much of a benefit as expected because you have to pay capital gains tax when you sell the car. OK, there's still an overall benefit there, but not as big as it might seem. Depreciation might even negate any benefit.
Can someone explain to me how anyone can make a capital gain on something that loses half its value in 3 years? :?


ChrisMc
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Re: Owner Thoughts/Experience?

Post by ChrisMc » Mon Apr 15, 2019 12:17 pm

scm wrote:
Mon Apr 15, 2019 12:13 pm
RJUK wrote:
Mon Apr 15, 2019 11:12 am
Also, I don't think the capital gains tax thing is as much of a benefit as expected because you have to pay capital gains tax when you sell the car. OK, there's still an overall benefit there, but not as big as it might seem. Depreciation might even negate any benefit.
Can someone explain to me how anyone can make a capital gain on something that loses half its value in 3 years? :?
Mystifies me too :lol:
MY20 - I Pace HSE EV400 in Black with full black pack, Mars Red Windsor leather sports seats, gloss black 20” wheels etc etc
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RJUK
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Re: Owner Thoughts/Experience?

Post by RJUK » Mon Apr 15, 2019 12:38 pm

As I understood it, though you could write off the value of the car (if purchased) against capital gains tax, you then have to pay capital gains tax when you sell it (on whatever amount you sell it for).

I'm not professing to be an expert though, just regurgitating what I've read online.


scm
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Re: Owner Thoughts/Experience?

Post by scm » Mon Apr 15, 2019 12:44 pm

That's the sort of logic that makes us have to pay for accountants!


TeslaDriver
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Re: Owner Thoughts/Experience?

Post by TeslaDriver » Mon Apr 15, 2019 12:52 pm

scm wrote:
Mon Apr 15, 2019 12:13 pm
Can someone explain to me how anyone can make a capital gain on something that loses half its value in 3 years? :?
As I understand it, because you get 100% first-year-writeoff, even if you sell if for a Quid that's 100% profit (on which to then pay tax).

So basically the difference between Purchase and Sale price is not taxed (but is probably identical to what depreciation write off would have got you anyway), so all you have gained is the "use of the money" on the other bit, in effect an interest free loan. But timing is then important ... you've got to wait to get the benefit (or "offset") against corporation tax, and the company has got to post a profit that year :) With ideal timing that interval can be short, and with ideal timing at sale the other end can be long ... all that is probably fine for the Boss buying an EV and juggling things, but I doubt a boss is going to bother with that Man Maths for an Employee getting one ... but the company might well have a tax angle if they buy a whole fleet of EVs ...

Suggest to your boss the tax advantage if everyone got an EV? :D


RJUK
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Re: Owner Thoughts/Experience?

Post by RJUK » Mon Apr 15, 2019 1:45 pm

TeslaDriver wrote:
Mon Apr 15, 2019 12:52 pm
scm wrote:
Mon Apr 15, 2019 12:13 pm
Can someone explain to me how anyone can make a capital gain on something that loses half its value in 3 years? :?
As I understand it, because you get 100% first-year-writeoff, even if you sell if for a Quid that's 100% profit (on which to then pay tax).

So basically the difference between Purchase and Sale price is not taxed (but is probably identical to what depreciation write off would have got you anyway), so all you have gained is the "use of the money" on the other bit, in effect an interest free loan. But timing is then important ... you've got to wait to get the benefit (or "offset") against corporation tax, and the company has got to post a profit that year :) With ideal timing that interval can be short, and with ideal timing at sale the other end can be long ... all that is probably fine for the Boss buying an EV and juggling things, but I doubt a boss is going to bother with that Man Maths for an Employee getting one ... but the company might well have a tax angle if they buy a whole fleet of EVs ...

Suggest to your boss the tax advantage if everyone got an EV? :D
Thanks for the help with that!

Not sure we'll be able to get everyone on EVs. Our cars all refresh at different times, so some have only just got cars etc.

In future though I'm sure everyone will be on EVs...


TeslaDriver
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Re: Owner Thoughts/Experience?

Post by TeslaDriver » Mon Apr 15, 2019 2:09 pm

RJUK wrote:
Mon Apr 15, 2019 1:45 pm
In future though I'm sure everyone will be on EVs...
How does your boss feel about installing EV charging in the car park? (assuming the business has that sort of facility). I think that might tell you a bit about whether he/she feels that being seen to be Eco is on their agenda, and if it is then you might expect some sort buy-in. But I suppose if that was the case the Boss would already be driving an EV, and the car park would be undergoing change ...

I have pushed my company that if any employee gets an EV they should get a free charging-at-work perk. We might need to monitor that a bit (for abuse) but all employees live within relatively short distance of work, and 20 - 40 miles a day translates to £200-ish a year, so I don't see it as a lot to add to an employee's salary, as a perk (the company is profession services, not burger-flipping :) ) and the company is keen to push on the Eco front (Solar PV on the roof and they are looking into whole-building battery as a UPS alternative). I figure that if we get one or two employees with an EV (one person has already asked about charging at work) that may well open the flood-gates, and I would be chuffed when that happens.


RJUK
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Re: Owner Thoughts/Experience?

Post by RJUK » Mon Apr 15, 2019 2:37 pm

Well I'll give you a clue, one of my bosses drives a V8 diesel Cayenne and the other a 3.6 petrol Macan Turbo S...

I'll leave you to contemplate how worried they are about being green!

If the EV was going to be affordable then I'd push for a charger on the basis that there's a government subsidy, but I'm not sure he'd go for it unless he expected to quickly get the investment back. How long we'll be in this building for, I don't know. There's only so much room for growth before we'd have to move to a larger facility elsewhere and as such he might not be interested in investing in charging points that he might never get the benefit of.


TeslaDriver
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Re: Owner Thoughts/Experience?

Post by TeslaDriver » Mon Apr 15, 2019 2:50 pm

RJUK wrote:
Mon Apr 15, 2019 2:37 pm
one of my bosses drives a V8 diesel Cayenne and the other a 3.6 petrol Macan Turbo S...
I think that's a really good thing ... once you have got yours they'll be itching to go EV :)


RJUK
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Re: Owner Thoughts/Experience?

Post by RJUK » Mon Apr 15, 2019 3:47 pm

Hmm, I think line's a bit of a pipe dream. I went to see the nearest I-Pace in a dealership on Sunday. Very nice cars, but after adding up all the costs it's not really going to be feasible without either my employer giving me a bigger allowance or me chucking a load of my own money into it as well.

As much as I'd love to do that, it makes more sense to pay it off the mortgage than into a car that will be given back after 3 years.


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