Motor Capital Allowances now based on emissions of CO2

October 22nd, 2009  |  Published in Uncategorized

With effect from April 2009 the capital allowance treatment of all cars was reformed to favour those with low CO2 emissions.

Basically clean small cars attract more allowance than old dirty ones (like my Jag!)

Expenditure on cars with CO2 emissions above 160g/km will attract 10% writing down allowance (WDA) while expenditure on cars with CO2 emissions of 160g/km or below will attract 20% WDA.

The rules which disallow a proportion of car lease rental payments will be reformed in line with the new capital allowances rules. The new disallowance will be 15% of the relevant payments, applied to cars dealt with the 10% special rate pool.

In addition to this, the 100% first year allowance (FYA) for the cleanest cars will be extended from March 31, 2008, to March 31, 2013, and the qualifying CO2 emissions threshold will be reduced to 110g/km.

Our client base is small businesses, self-employed sole traders and partnerships in the Tameside towns of Stalybridge, Dukinfield, Ashton under Lyne, Droylsden, Audenshaw, Hyde, Denton, Mossley and Longdendale, and its surrounding districts of Stockport, Oldham, Glossop and Manchester.

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