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 75g CO2 per km

100% first year allowances are available on new low emission cars.

Cars emitting from 76g to 130g CO2 per km

These cars will receive a 18% writing down allowance on a reducing balance basis. Secondhand cars below 75g and registered before 1st Feb 2001 will also go into this pool.

There will also be no lease rental restriction.

Cars emitting above 130g CO2 per km

Writing down allowances are restricted to just 8% of the purchase cost on cars emitting more than 130g 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.

Discounted tax relief from illustration 7,177.68

Calculate writing down allowance

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Illustration
Year FYA @100% Disposal proceeds Pool (Reducing balance) Tax relief Tax charges Discounted tax relief
41,555.00 7,895.45 0.00 7,177.68
1 41,555.00 0.00 7,895.45 0.00 7,177.68
2 0.00 0.00 0.00 0.00 0.00
3 0.00 0.00 0.00 0.00 0.00
4 0.00 0.00 0.00 0.00 0.00
5 0.00 0.00 0.00 0.00 0.00
6 0.00 0.00 0.00 0.00 0.00
7 0.00 0.00 0.00 0.00 0.00
8 0.00 0.00 0.00 0.00 0.00
9 0.00 0.00 0.00 0.00 0.00
10 and above 0.00 0.00 0.00 0.00

Comparison

To compare by CO2 the figures must be different

Base comparison on