When a car is supplied complete with 'extras' such as a car
phone or in-car entertainment, the cost of those items will be
included in the cost of the vehicle. Capital allowances for 2001/02
and earlier years can therefore be based on the aggregate cost of
the car and extras. For 2002/03 onwards, no tax relief is available
for such 'included' extras beyond the normal mileage allowance
relief for the car in question (see
EIM31330 onwards).
If it is clear that these items were supplied separately
after the car was purchased, then they will qualify for capital
allowances if they are necessarily provided for use in the
performance of the duties (see
EIM36520). This applies for all years.
It is possible that a car phone would qualify for capital
allowances, but most unlikely that in-car entertainment would do
so.
Allowances in respect of the capital cost of a car
telephone, or other mobile telephone, should normally be given only
where:
As regards the availability of first year allowances for
high-tech communication equipment, see
EIM36731.
(This text has been withheld because of exemptions in the
Freedom of Information Act 2000)
