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Captial allowances on expensive company car

Capital allowances on expensive company car

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I have a client who wants to buy an £80k hybrid motor car Co2 79g/km through their ltd company and they require a cost analysis of the impact of this.

I am not sure of the some of the tax rules on this:

  1. Is "Hybrid" the same as "electric" in terms of P11d benefits calculation?
  2. If Hybrid is diesel does the P11d benefit loading apply? 
  3. I believe that such a car would go into the 18% pool for capital allowances but my question here is that is there a maximum allowance availably on a car given that 18% of £80k is £14,400 tax relief. 
  4. Anything else I need to be aware of that I might have missed?

Thank you





Replies (2)

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By paul.benny
13th Dec 2019 09:21

Have you tried using the HMRC calculator for the P11d benefit?

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By SteveHa
13th Dec 2019 10:02

ULEVs have CO2 below 75G/km, so it isn't a ULEV and subject to standard BIK rules.

The maximum capital allowance value (was £12,000 x 25%) was replaced by CO2 linked capital allowances in 2009.

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