Lease rental restriction

For businesses that hire or lease their cars, tax relief is limited for higher emitting vehicles

From April 2018 to March 2021

For contracts entered in to from April 2018, tax relief for leased cars is limited according to the CO2 emissions per below:

CO2 emissions Allowed rentals Disallowed rentals
110 g/km or below 100% 0%
Above 110 g/km 85% 15%

From April 2013 to March 2018

For contracts entered in to from April 2013, tax relief for leased cars is limited according to the CO2 emissions as follows:

CO2 emissions Allowed rentals Disallowed rentals
130 g/km or below 100% 0%
Above 130 g/km 85% 15%

For corporation tax purposes the thresholds noted above apply for cars leased on or after 1 April 2013. For income tax purposes the thresholds apply for cars leased on or after 6 April 2013.

From April 2009 to March 2013

For contracts entered in to between April 2009 and March 2013, tax relief for leased cars is limited according to the CO2 emissions as follows:

CO2 emissions Allowed rentals Disallowed rentals
160 g/km or below 100% 0%
Above 160 g/km 85% 15%
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