Annual investment allowance

[JDO]

I have recently read an article in the October issue of Taxcafe Business Tax Saver.

The article details motoring tax deductions using the annual investment allowance.

In the past i have always used the '40p per mile for the first 10000 miles' system.

As I intend to change my vehicle in the near future can anyone please clarify the position.

At present i use my vehicle for personal use and business use travelling to my btl properties.

My total mileage is about 6000 miles per year with about 2000 business miles.

Any advice would appreciated.

John

[Telometer]

Without having read the article it is difficult to know what to say.

40p per mile for 10,000 miles is generally the most tax-efficient method.

[Gordon999]

The relevant page 67 in tax guide No. 480(2010) can be downloaded from www.hmrc.gov.uk