If I, as a sole trader, use my own car for business purposes, and claim/charge the business x number of miles at 45p/25p mile, does this remove the ability for the sole trader to claim capital allowances on the proportion of the cost of the vehicle used for the business? My understanding is that it does, as the 45p/25p includes an element of depreciation to the vehicle in addition to fuel, insurance elements etc.

Arthur Weller replies:
If you look at the guidance here: www.gov.uk/simplerincome-tax-simplified-expenses/vehicles - you can see that you can claim the 45p/25p rate for business mileage as long as you claim no capital allowances. So, you are correct.