Some cars now only qualify for 6% tax relief
The latest Finance Act has reduced the tax writing down allowance for motor cars that emit more than 110 grams of CO2 to just 6% on a reducing balance basis from April 2019. In the case of company cars the vehicle is included in the "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 - check with us or look at our guide to company cars and their tax implications.
If you would like to discuss this in more detail please contact our Tax Partner, Steve Crompton, on the details below:
Partner – Head of Tax
direct dial: 01942 292541
mobile: 07790 840394