100% First Year Allowances on Low Emission Cars Extended
Up until 31 March 2015 it was possible for businesses to claim up to 100% of the cost of cars purchased for use in the business if they had CO2 emissions of 95g/km or less.
This is known as first year allowances (FYA) and HMRC have extended the deadline for claiming FYA on low emission cars, from 31 March 2015 to 31 March 2018. However, the regulations have also lowered the permitted limit of CO2 emissions for qualifying cars, so from 1 April 2015 cars must have CO2 emissions of 75g/km or less in order to qualify for FYA.
Another advantage of cars with low CO2 emissions is a lower benefit in kind charge, as an employee’s company car benefit is based on list price and CO2 emissions.
It just goes to show – the future isn’t orange, it’s green!
For more information please contact Green & Co.
Please note: This article is a commentary on general principles and should not be interpreted as advice for your specific situation.
Image courtesy of Paul at FreeDigitalPhotos.net
