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Despite lobbying from sections of the business car industry, the new capital allowance scheme proposed in the November 2008 Pre-Budget Report has been confirmed in today's Budget.
Under the regulations, purchases of cars with a CO2 above 160g/km will attract only a 10% allowance, while those between 110g/km and 160g/km will be eligible for a 20% allowance.
Vehicles with CO2 emissions below 110g/km gain a 100% first-year allowance.
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