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Markel Tax

22 Nov 2017

Autumn Budget 2017: Mileage rates for unincorporated property businesses

Prior to 6 April 2017, when distinguishing which motor expenses were allowable deductions, property-owners were restricted to the running costs related wholly to the purpose of the business.

In the 2017 Autumn budget it was announced that the options available for unincorporated property businesses have been made more in line with those for a trading business. From 6 April 2017, property owners will have the option of calculating their allowable deductions using the fixed mileage rates. Where capital allowances have not already been claimed on the car/van, a fixed 45p on the first 10,000 business miles and 25p on any excess may be claimed per tax year.

Whilst this will have no large economic affect, it will prove beneficial to some businesses. The changes will simplify both the tax computations and motor expense claims for unincorporated businesses as well as harmonising the expense treatment across unincorporated and incorporated businesses.

Tagged Property
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22 Nov 2017

Autumn Budget 2017: Master trust tax registration