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 Post subject: Hackney Plate "Purchase"
PostPosted: Wed Jul 18, 2012 3:38 pm 
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Location: South Coast
If one "buys" a hackney plate from a previous holder, is the purchase price allowable against tax? I wondered because it is almost a "black market" transaction.

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PostPosted: Wed Jul 18, 2012 5:59 pm 
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2 Jobs wrote:
If one "buys" a hackney plate from a previous holder, is the purchase price allowable against tax? I wondered because it is almost a "black market" transaction.

I didn't think you bought the plate. I thought that you bought the vehicle that the plate was attached to.

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PostPosted: Wed Jul 18, 2012 6:05 pm 
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Black-market is an expression used when purchasing or selling things that are illegal... it is often used by certain people within the trade to create that impression.... when they use it.... they show themselves up for what they are.... idiots..... if you buy and sell a licence and make a profit .... you could well pay tax... if your VAT registered and sell the licence you will be responsible for the VAT element...

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PostPosted: Wed Jul 18, 2012 6:15 pm 
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2 Jobs wrote:
If one "buys" a hackney plate from a previous holder, is the purchase price allowable against tax? I wondered because it is almost a "black market" transaction.


Well it's not really illegal as such, so perhaps 'grey market' is a better expression.

But it's treated as a capital asset rather than an ongoing expense, so the price is allowable against tax, but only when it's resold.

Simply speaking if you bought a plate for £20k and sold it for £50k a few years later then you'd be liable for tax on the selling price, but the purchase price is allowed against it, so you'd pay tax on the profit of £30k, or 'capital gains tax', to be precise.

Or if you got a 'free' plate and sold it for £40k then your capital gain would be £40k.

Although that's the basic principle of the thing there are allowances and the like, as outlined in my recent post here:

viewtopic.php?f=14&t=19792

As Grandad alludes the plate is normally sold as a package along with a vehicle, so the total price would be divided between the vehicle and the plate for tax purposes.


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PostPosted: Thu Jul 19, 2012 1:41 pm 
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Many thanks for that. I heard a whisper there may be a local plate up for sale and i might be temptemted even with the full knowledge it may be worthless in 3 years? The car its on is worth 2/6 and belongs to an old chap who is still working for a bit of pocket money. There are very few "local" independents left in my manor.

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PostPosted: Thu Jul 19, 2012 4:48 pm 
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2 Jobs wrote:
Many thanks for that. I heard a whisper there may be a local plate up for sale and i might be temptemted even with the full knowledge it may be worthless in 3 years? The car its on is worth 2/6 and belongs to an old chap who is still working for a bit of pocket money. There are very few "local" independents left in my manor.

check when they last had a survey... and when they intend to do the next one.. the rest is basic maths

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Justice for the 96. It has only taken 27 years...........repeat the same lies for 27 years and the truth sounds strange to people!


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