Motor Vehicles Expenses

Key requirements

Motor-car purchase and running costs are generally blocked under Regulation 27, including petrol and parking, even for wholly business use. Other vehicles such as vans, lorries and motorcycles follow normal claim conditions. The defined exclusions and specialist-business rules must be checked separately. Since April 2022, qualifying point-to-point chauffeured private-hire transport purchased per trip can be claimed with valid tax evidence. From January 2023, third-party car expenses have distinct rules; connected-person recovery requires both recovery and a supply not ancillary to another primary service. The receiving connected business can still face its own blocked claim. A licensed sole-proprietor PHC driver may claim qualifying running costs but not acquisition or private use. Individual fleet operators’ purchase exception requires at least three PHCs, two employed drivers in addition to the operator and ACRA sole-proprietor registration.