Low Emission Company Cars

Selecting a low emission car is important to reduce your impact on the environment. It can also help you reduce your fuel costs and tax bill. Below, we have pointed out some of these benefits.

 

Capital Allowances

Since 6 April 2013 tax rules have changed and it is harder to claim capital allowances on the cost of a car.

The current rules are that a 100% first year allowance is available for low emission cars with CO2 emissions of 95g/km or less. 

Cars with emissions between 96g/km and 130g/km are eligible for capital allowances at the main rate (18%), and higher emission cars attract writing-down allowances at the special rate (8%).

Car Vehicle Tax (Road Tax)

Car vehicle tax rates are based on either engine size or fuel type and CO2 emissions, depending on when the vehicle was registered.

Cars with emission < 100g/km are free, 101-110 £10, 111-120 £20 …… over 255 = £480

Benefit In Kind Tax (P11D)

The taxable amount is calculated by multiplying the list price of the car by the applicable percentage which is based on the vehicle emissions.

Zero emission (electric) cars have 0% and are therefore tax free

Otherwise percentages would be on a scale

Co2            Petrol %     Diesel %     Co2                  Petrol %     Diesel %

76-99         10                13                 100-104                11                  14

105-109     12                15                 110-115                13                 16          

150-154     21                24                 155-159                22                 25

205-210     32                35                 210-214                33                 35

215-219     34                35                  220+                    35                 35