Definition and classification of cars

The definition of a 'car' for capital allowance purposes is a mechanically propelled road vehicle except:

  • a motorcycle
  • a vehicle constructed in such a way that it is primarily suited for transporting goods of any sort
  • a vehicle of a type which is not commonly used as a private vehicle and is not suitable for use as a private vehicle

CAA 2001, s 268A

Lorries, vans, trucks etc are therefore not 'cars' for capital allowance purposes and will be treated as plant and machinery.

Cars do not qualify for the annual investment allowance (AIA).

Cars bought from 1 April 2018

The CO2 figure used to define a low emissions car has been amended several times by Treasury order.

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