New Rules on Company Cars
From April 2009 new rules on business expenditure on cars comes in to force.
If you are thinking of using a car, be aware that CO2 emissions will affect the tax allowances you can claim.
There are three CO2 emissions brackets:
- Up to 110g/KM – 100% first year allowance
- Not exceeding 160g/KM – 20% capital allowance
- Over 160g/KM – 10% capital allowance
If you are thinking of buying a new car, contact us for individual guidance on the tax consequences FIRST! The effects are different between individuals (and different again if they are self employed) and Companies and advice can pay off.
If you decide to lease a car after 1 April (companies) or 6 April (individuals) then the CO2 emissions will affect the amount of expenditure you can claim for tax purposes.
Again, please talk to us first if you are looking to lease a car (we may even be able to help with the finance!).
