Capital allowances to be based on emissions of CO2 from April 2009

With effect from April 2009 the capital allowance treatment of all cars will be reformed to favour those with low CO2 emissions.

Expenditure on cars with CO2 emissions above 160g/km will attract 10% writing down allowance (WDA) while expenditure on cars with CO2 emissions of 160g/km or below will attract 20% WDA.

The rules which disallow a proportion of car lease rental payments will be reformed in line with the new capital allowances rules. The new disallowance will be 15% of the relevant payments, applied to cars dealt with the 10% special rate pool.

Cars with CO2 emissions less than 110g/km or electric cars and vans will qualify for first year writing down allowances of 100% from April 2010.

Author: Lee Sibbald, April 4, 2008

On the forum...

• Brussels sued over biofuel 'cover up'
  
• Are Bentley now a green manufacturer?
  
• Milton Keynes plugs in to funding for electric vehicle charging points
  
• WorldAutoSteel announces participation in the United Nations Environment Program
  
• Government backs low carbon aerospace with £45m of research projects
  

Latest from ContractHireAndLeasing.com

• Unique Citroen DS3 used for Yves Saint Laurent retrospective
  
• Germany hit by ’scrappage hangover’
  
• Renault-Nissan opens Indian manufacturing plant
  
• Entry models added to each Vauxhall range
  
• Toyota: Recall programme on course
  
• Motorists call for more action on drink and drug driving
  
• Diesel version of Nissan Murano available this year
  
• Super Toyota Aygo, super deal
  
• BMW to bring new 5 series Touring model to UK
  
• SEAT open national Fleet Business Centre
  

Latest from FleetDirectory.co.uk

• Continued surge in student numbers enables unemployment to fall
  
• Almost 50% agree with plans to fine drivers who leave engines running
  
• M2 Medway Bridge, Kent: Maintenance Inspections
  
• IMI honour top industry achievers
  
• Boost to Economy as £8 Million Improvement Work On M4 Start Early
  
• Honda: affected models are not sold in Europe
  
• Too expensive to fill up! Fleet Voice
  
• Responsible young drivers can earn insurance savings
  
• Lex Autolease survey reveals company cars mean fast cash for UK businesses
  
• Lombard: Fundamentals of Salary Sacrifice need to be understood by fleets