Some cars only qualify for 6% tax relief now
The latest Finance Act has reduced the tax writing down allowance for motor cars that emit more than 110 grams of CO2 from 8% to just 6% on a reducing balance basis from April 2019. For company cars the vehicle is included in the capital allowance “special rate” pool which means that even when the car is sold the proceeds are deducted from the pool and the 6% allowance continues until the balance is written off. It may be more advantageous to lease such a vehicle, but please check with us first.
For further information on company car tax relief, please contact Gary Brown on 023 8046 1240.