Guide

Is a Used Van a Tax Write-Off?

You’ll often hear that a van is “a write-off against tax”. There’s truth in it, through capital allowances, but the detail depends on how you fund it and your company’s position.

calendar_today Published 29 April 2026 schedule 2 min read verified Reviewed by Van Finance Limited

On this page

Capital allowances and the AIA
How the finance type affects it
The honest caveats

Is a Used Van a Tax Write-Off?, featured image

Capital allowances and the AIA

A van is plant and machinery for tax, so a limited company can usually claim capital allowances on it. The Annual Investment Allowance (AIA) may let you deduct the full cost in the year of purchase, subject to the AIA limit and your circumstances, including on a used van.

How the finance type affects it

Hire purchase: you’re treated as buying the van, so capital allowances/AIA usually apply, and you can claim the interest as an expense.
Finance lease / leasing: you typically deduct the rentals against profit instead of claiming capital allowances.

The honest caveats

“Write-off” means a deduction against taxable profit, not free money. The benefit depends on your profits, the AIA limit in force, and whether there’s any private use. This is general information. Your accountant should confirm what your company can claim.

This is general information, not financial or tax advice. Tax treatment depends on your individual circumstances and may change. Always confirm your position with a qualified accountant before making a decision. Van finance is subject to status and eligibility.

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Written by Van Finance Limited

Our team arranges used van finance for UK limited companies every day, across a panel of trusted UK lenders. This guide reflects what we see in practice. Learn more about us.

FAQs

Straight answers to the questions we hear most, on eligibility, credit checks and how the process works.

Can I claim the full cost of a used van in one year?

Often via the AIA, yes, but it’s subject to the allowance limit and your circumstances. Confirm with your accountant.

Does buying on HP still qualify?

Generally yes, on hire purchase you’re treated as the owner for capital-allowances purposes. Leasing is treated differently (rentals deducted instead).