Tax & Accounting News

Claiming back the cost of cars

20/07/2010

Since 2009, the rate at which companies can claim back Capital Allowances (CAs) on company cars has been based on the vehicle’s CO2 emissions, rather than its price, as was previously the case.

For cars with CO2 emissions above 160g/km, businesses can only claim back CAs worth 10% of the purchase price, but this rises to 20% for cars with emissions below that figure.

Furthermore, for the ‘greenest’ cars, with emissions below 110g/km, 100% of the cost can be claimed against tax in the first year of purchase. And this need not mean sacrificing luxury or power – the Audi A3 and BMW 320d are among the cars which fall into this category.

In addition to savings on CAs, lower-emission cars also attract reduced Benefit-in-Kind and National Insurance payments, benefiting the company and the driver. For a firm with a large corporate fleet, the savings could be considerable.

More information about vehicles’ CO2 emissions is readily available online, including at www.vcacarfueldata.org.uk.

For more information please contact us.

 

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