Last updated: 14 October 2026
Can you claim tax relief on a personalised number plate for a company car?
Usually not. A personalised number plate is a right to display a registration mark, not part of the car itself, so the cost isn’t a revenue expense and doesn’t qualify for capital allowances as plant or machinery. If your company buys one, it’s held as an intangible asset. Because plates usually keep their value, there’s normally no amortisation in the accounts and so no tax deduction until the plate is sold. VAT recovery is also often challenged.
How the cost is treated
| Situation | Tax treatment |
| Company buys a plate for a director’s car | Held as an intangible asset; usually no deduction while it keeps its value |
| Plate used to advertise the business, e.g. a company name | Still capital; treated the same way |
| Sole trader buys a plate | Capital cost; no capital allowances |
| Plate transferred to the director personally | Benefit in kind or distribution at market value |
Benefit in kind
If a director drives a company car, they pay benefit in kind tax based on the car’s list price and CO2 emissions. The plate doesn’t change the list price, so there’s usually no extra benefit while the plate stays on the car. If the company gives the plate to the director, or pays for one the director owns, it’s a taxable benefit or a dividend.
Example
A company buys a plate for £4,000 and puts it on the managing director’s company car. The company gets no deduction or capital allowance. If the plate is sold later for £5,000, the profit may be taxable. If instead the director bought the plate personally and the company paid for it, the £4,000 would be taxed on the director as earnings or a distribution.
VAT
VAT recovery depends on the plate having a genuine business purpose. HMRC often challenges claims where the plate is on a car a director uses privately, or where it’s mainly personal, so take advice before reclaiming.
Why HMRC takes this view
A registration mark doesn’t help the car work, so it isn’t plant. It’s a right granted by the DVLA that can be moved from car to car and sold on. That makes it closer to an investment or a personal item than a business tool, unless there’s clear evidence it promotes the business.
Better options
- Buy the plate personally, with no tax relief, and keep ownership clear
- Use the company name on vehicle livery rather than the plate, as livery is a deductible marketing cost
- Record ownership in the company’s asset register if the company holds it
Records to keep
Keep the DVLA certificate of entitlement or V5C showing who holds the right, the invoice, and a board minute recording why the company bought it.
Frequently asked questions
Is a personalised plate an investment?
It can rise in value, but that doesn’t make it deductible.
Can a sole trader claim it as advertising?
HMRC generally rejects this.
Does it count when I sell the car?
Plates are usually retained and transferred separately.
Is there tax when a plate is sold?
For a company, a profit on sale is taxable; for individuals, take advice on the CGT position.
Related: company car fuel and mileage and vehicle benefit changes.
Talk to Accotax
Want this handled for you? Our team at Accotax can help with company car tax. See our small business accountants service, or contact us for a free, no-obligation quote.
This page is general guidance based on HMRC rules for the 2026/27 tax year, checked against gov.uk on 14 October 2026. It is not personal advice, so speak to an accountant about your own situation.
