100% first-year allowances for expenditure on cars with low carbon dioxide emissions - May 2008
Businesses that purchase new, unused (not second hand) low carbon dioxide (CO2) emission cars or lease low CO2 emission cars, will benefit from the new allowances available.
100% expenditure on cars with CO2 emission not exceeding 120g/km ended on 31st March 2008. Legislation was introduced to:
- Extend the scheme for an additional five years until 31st March 2013
- Reduce the qualifying emissions threshold so that only expenditure on cars with CO2 emissions not exceeding 110g/km driven will attract 100% relief
- Introduce a transitional rule to ensure that any leasing contracts entered into before 1st April 2008 involving cars which qualified as low emissions cars under the old rules are unaffected by the reduction of the qualifying CO2 emissions limit to 110g/km and below
This has taken effect from 1st April 2008.
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