2009
April
The treatment of Corporation Tax on business cars from April 2009 changes.
The British Vehicle Rental & Leasing Association has confirmed that the new rules will only be applied to new vehicles on or from 01 April 2009 with no retrospective treatment.
There are two main changes to the Corporation Tax treatment of business cars. As of 1st April 2009, Corporation Tax relief for company cars will depend on their CO2 emissions:
- up to 160g/km;
- and 161g/km and above
These two figures will become key benchmarks.
The 20% writing down allowance rate (for cars between 111g/km-160g/km) and 10% writing down allowance rate (above 160g/km) are lower than the 2007-08 rate of 25% - and, unlike now, the cars will be pooled with other cars and assets.
The current 2008-09 rate of capital allowances is 20%.