Tax savings on green company cars extended but watch the trap!
Tuesday, March 18th, 2008 at 10:42 am
One of the new initiatives under this Budget is to extend the current 100% first year allowances for businesses providing cars with low CO2 emissions.However, the limit under which cars will qualify for the 100% allowance is reducing from the current 120g/km to 110g/km.
Despite this reduction in the CO2 emission limits for capital allowances, employees who are provided with company cars up to 120g/km will be able to enjoy a lower tax bill from 6th April 2008, with the benefit in kind based upon 10% of the list price for petrol cars and 13% for diesels.
Tip: Cars with low emissions may be a very cheap way of providing family members with cars whilst saving tax. It is surprising what cars have low emissions. A list of cars can be found at www.comcar.co.uk
