A couple have five properties they rent out. They purchased a car for the sole purpose of travelling between properties (i.e. collecting rent, doing repairs, etc). Can they get capital allowances on the car?

Arthur Weller replies:
If you look at HMRC’s Property Income manual (www.gov.uk/hmrc-internal-manuals/propertyincome-manual/pim2220) and Business Income manual (www.gov.uk/hmrc-internal-manuals/business-income-manual/bim75005) you can see, to put it very simply, that the taxpayer has a choice of using a fixed rate mileage deduction, or deducting actual running costs and claiming capital allowances.