Van Sales

Unless you have been on the moon you will know that from APril 1st 2012 the Revenues tax allowance for

” Capital Purchases” is reduced from £100,000 down to £25,000 per year

This means different things for different people
What it means short term is that if you intent to pay cash for any type of van you will be better off doing it before April 1st 2012, to allow the maximum next year.

• It will affect cash rich companies who will now more than likely lease a van than buy
• It will cause a mad rush in January Feb, March 2012 to beat the deadline for tax
• That weaker credit customers will loose out on tax allowance.
  HP is easier to get credit.
  Thus a customer buying two vans on HP might only get full tax relief on the first one
• Don’t forget that everything has to come out of that £25,000 that you buy
  that is high in value
• That associated companies have their £25,000 rolled into  one reducing the allowance
• That those who still have HP will have a WDA Writing Down Allowance of just 10 – 20% per year
  but this is now extended to 8 years for SHort Term Assets.

  In other words

• More customers will apply for lease credit, causing a strain on resources. We might find they turn away borderline cases that would be accepted six months before
• A shortage of vans in first quarter 2012
• A mad rush of customers trying to buy just after the event whom have just missed the boat
• Customers set in their way buying more short life products such as Renault might not get the full tax allowance from this over say 3 years lifespan of the vehicles