ABSTRACT
Like most professionals, dentists tend to purchase expensive motor vehicles, which they feel can be run on the practice, a view that is justified by the claim to its use for domicilary visits and other professional journeys. The amount that the accountant is able to negotiate by way of a disallowance for personal use of the vehicle will depend on individual circumstances and the attitude of the local Inspector of Taxes. Indeed, it is usually only when there is an 'in-depth' investigation that the matter comes to a head and a realistic proportion is renegotiated. The Inland Revenue is always, of course, entitled to rely upon the strict wording of the law - that expenditure must be 'wholly necessarily and exclusively' for the business. In reality, however, the Inland Revenue will seek to establish a fair proportion of expenditure for business use and restrict the tax deduction to that sum.
