This page is for companies to calculate the percentage of the cost of a vehicle that can be offset against corporation tax. It only applies to companies purchasing a new vehicle outright.
Cars emitting up to 50g CO2 per km
100% first year allowances are available on new low emission cars.
Cars emitting from 51g to 110g CO2 per km
These cars will receive a 18% writing down allowance on a reducing balance basis. Secondhand cars below 50g and registered before 1st Feb 2001 will also go into this pool.
There will also be no lease rental restriction.
Cars emitting above 110g CO2 per km
Writing down allowances are restricted to just 6% of the purchase cost on cars
emitting more than 110g CO2 per km.Cars will be added to the "special rate pool".
If your company leases, rather than buys outright, there is a restriction of 15% on the finance part of the rental.
There is a wide range of cars below this threshold, and drivers may be discouraged by their employers from choosing a car in this category.