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HMRC have issued some draft legislation
and guidance on how the tax relief on
business cars, known as capital
allowances, will be calculated from April
2009. The new rules apply to expenditure
incurred on or after 6 April 2009 (1 April
2009 for companies). The 100% immediate
write off for expenditure on cars with CO2
emissions of 110 gm/km or less remains but
the old expensive car rules are abolished.
The rate of annual writing down
allowances for expenditure on other cars
will be determined by the car’s CO2
emissions. The new rules provide that
expenditure on cars with CO2 emissions:
- not exceeding 160gm/km will be
pooled in the main 20% pool: and
- over 160gm/km will be pooled in the
10% pool.
The legislation is draft at present and
we will keep you informed of developments.
Meanwhile do get in touch if you are
planning significant expenditure in this
area.
Internet link:
Treasury note |
