Leasing a business car rather than purchasing what is inevitably a fast-depreciating asset in today’s world, has its attractions.
One of these is that if the CO2 emissions of the car do not exceed 160 g/km the whole of the leasing payments are tax deductible (less of course any private use % applying to a sole trader or partner). That magic level is going down sharply to 130 g/km for car leases entered into from April this year, so if you are considering a car change the timing could be all-important. If the CO2 emissions exceed those levels you only get tax relief on a fixed 85% of the lease rentals – not that such a position is really a bad deal if the CO2 emissions are on the high side.
Car leasing
News: February 2013
Car leasing
Leasing a business car rather than purchasing what is inevitably a fast-depreciating asset in today’s world, has its attractions.
One of these is that if the CO2 emissions of the car do not exceed 160 g/km the whole of the leasing payments are tax deductible (less of course any private use % applying to a sole trader or partner). That magic level is going down sharply to 130 g/km for car leases entered into from April this year, so if you are considering a car change the timing could be all-important. If the CO2 emissions exceed those levels you only get tax relief on a fixed 85% of the lease rentals – not that such a position is really a bad deal if the CO2 emissions are on the high side.
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