Error parsing XSLT file: \xslt\FacebookOpenGraph.xslt Budget 2016: Big CO2 cut in capital allowance boundaries
Cookies on Businesscar

We use cookies to ensure that we give you the best experience on our website. If you continue without changing your settings, we will assume that you are happy to receive all cookies on the Business Car website. However, if you would like to, you can change your cookies at any time

BusinessCar magazine website email Awards mobile

The start point for the best source of fleet information

Budget 2016: Big CO2 cut in capital allowance boundaries

Date: 16 March 2016   |   Author:

Changes to the company car capital allowance boundaries have been announced in the chancellor's 2016 Budget.

The 100% first year write-down boundary for company cars will be cut from 75g/km to 50g/km in April 2018, while at the same point the main rate of capital allowance will only be available on cars of 110g/km or below, rather than the 130g/km level currently in operation.

The capital allowance rate affects businesses that buy outright, and the amount of their business car asset they can write-off against pre-tax profits.

Many fleets that buy outright cap their company car policies at 130g/km, and the change announced today is likely to be reflected in decision-making policies.