Special rate pool for company cars - am I missing something ??

Special rate pool for company cars - am I...

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Motor vehicles will ordinarily fall into the special 10% rate pool where CO2 emissions exceed 160 gm/km or into the main 20% pool where the CO2 emissions are between 110 and 160 gm/km .

However where there is private usage each asset will be treated as a single asset pool - this is for unincorporated businesses but what about incorporated businesses ??

If for example an incorporated business purchases 2 motor cars with emissions under 160 gm/km which are both provided as company cars and therefore reported on P11Ds this by definition indicates that there is private usage of the vehicles. However it seems that these motor cars are still 'consolidated' in the special rate pool for Corporation Tax purposes which is contrary to the treatment of each asset being in a single asset pool for an unincorporated business.

Does the single asset pool for each vehicle only apply to unincorporated businesses ?? This seems a bit inconsistent if this is the case.

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Rebecca Benneyworth profile image
By Rebecca Benneyworth
05th Jul 2011 22:46

Very simple
Companies can't drive so they can't make private use of the cars. Bad news for company -can't depool the car so no balancing allowance on sale.

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By pdorrington
05th Jul 2011 23:10

Got it !!

Thanks Rebecca

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