Q. We have a driving instructor, who is a sole trader looking to purchase a dual control vehicle, that is likely to be used 20% of the time for personal use. What is the tax treatment of dual control vehicles, and will the purchase qualify for 100% annual investment allowance (AIA) or writing down allowance (WDA)?

A. Cars are classified as machinery. These would not qualify for annual investment allowance (AIA), as they fall within the general exclusion 2 in CAA 2001, s38B. AIA may be available on the purchase of dual control vehicles as they do not meet the definition of a car in CAA 2001, s268A.

‘Cars’ in CAA 2001, s268A applies to:

A