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Legislation News - Corporation Tax Changes 1st April 2009
From the 1st of April 2009 Corporation Tax on business cars is changing with tax savings for “green” vehicles and tax penalties for “polluting” vehicles. There will be changes to both the Writing Down Allowances and the Lease Rental Restriction. There is much legislative detail to these changes but in summary vehicles emitting over 160g/km will be penalised and vehicles emitting under 110g/km will benefit.
Writing Down Allowances – Cars up to 110g/km emission benefit from 100% 1st year write down allowance. Cars up to 160 g/km emission written down at 20% p.a. Cars emitting 161 g/km or more written down at 10% p.a.
Lease Rental Restriction – For cars emitting 160g/km or less the lease rental is fully allowable against the lessees’ business expenses. For cars emitting 161g/km or more 15% of the finance element of the lease is NOT allowable against lessees’ business expenses.
In short the cleaner the car the less tax is payable!
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