u/Cool_Story_6782

I'm trying to understand the tax treatment when a UK limited company buys a car that will be used for both business and private purposes by the director. From what I've read, if the car is available for any private use, HMRC generally doesn't allow the company to reclaim the VAT on the purchase, even if the majority of the mileage is for business. If that's correct, I have a few questions:

1. Is it true that the company cannot reclaim any VAT on the purchase if there's any private use?
2. Are there any exceptions that would still allow VAT recovery?
3. If the company cannot reclaim the VAT, can it still claim capital allowances (or 100% First-Year Allowance if it's a qualifying new electric car)?
4. Does the director's private use reduce or prevent the company from claiming capital allowances, or is the private use dealt with separately through the Benefit-in-Kind rules?
5. Is it possible for a company to receive no VAT recovery on the purchase but still receive full corporation tax relief through capital allowances?
6. For those who advise owner-managed businesses, what factors do you consider when deciding whether to buy a car personally or through the company? Do VAT, corporation tax, Benefit-in-Kind, and running costs usually drive that decision?

How the VAT rules, capital allowances, and Benefit in kind interact, as they seem to be treated quite differently.