Car Tuition Companies

Key requirements

Cars described as For Instruction (Co) in the log card and principally used to teach driving can qualify for expense deductions and capital allowances under the stated provisions. Losses and allowances from car instruction activities are generally ring-fenced from other income, but can carry forward against that same business subject to the relevant tests. Remaining balances are disregarded on cessation. IRAS notes a historical exception for balances relating to YA 1999 and earlier. A company with other activities must keep distinct accounts identifying teaching income and costs; the vehicle classification and actual use both matter.