In this Section
-
Business Users
-
Finance Solutions Explained
-
Company Car Tax
-
Capital Allowance
-
Vehicle Excise Duty
-
Enquiries
Related Pages
Capital Allowance
From April 2009, capital allowance for all cars will be based on CO2 emissions. The lower the emissions, the more favourable the rate.
A 10% writing down allowance (WDA) can be applied to expenditure on cars with emissions above 160g/km while expenditure on car with emissions of 160g/km or less attract a WDA of 20%.
In accordance with the new capital allowance reforms, from April 2009 a fleet that leases cars with CO2 emissions of 106g/km or less will be able to offset their leasing payments against corporation tax.
However, those vehicles with CO2 emissions of more than 160g/km will attract a disallowance of 15%, which means that businesses can only offset 85% of the lease payments. All vehicles in the SR range are sub 160g/km and therefore cost less to run.