Talk Morgan Forums Community The Malvern Arms Investment value of "classic" vehicles..?

Three or four years ago I asked our accountant why the Government didn't apply CGT to cars.
I was told that the way the law is written it if CGT was applied to cars then we could claim CGT relief on the loss of value of all cars. This would cost the Government far more than the tax they would collect.
In grand scheme of things the lost CGT on Classic Cars is so small as to make the cost of amending legislation to make CGT payable but a capital loss not claimable wouldn't be worth it and such an inequity would be contested in the courts anyway.

The strange world of HMRC has many little anomalies. Another is that Motorcycles are not classified as motor vehicles so a business owning a motorcycle can immediately re-claim the VAT and depreciate the asset to zero in 3 years. Which is what I did when I ran "Jenks Bolts"... twice.
Once depreciated the company sold me the bike for scrap value. I was told that this is perfectly legal.