Firm News
Capital News for Company Cars
Warwickshire accountants Murphy Salisbury are advising business owners of new rules in relation to company cars.
Following November’s Pre-Budget Report, HMRC have issued draft legislation and guidance on the intended changes to tax relief, also known as capital allowances, on business cars which take effect in April 2009.
The new rules apply to expenditure incurred on or after 6 April 2009 (1 April 2009 for companies). The immediate 100 per cent write-off for expenditure on cars with CO² emissions of 110gm/km or less remains in place.
Paul Salisbury, managing partner of Murphy Salisbury said: "The annual rate of write-down allowances for expenditure on other cars will be determined by the individual car’s CO² emissions in each case. The new rules state that expenditure on cars with CO² emissions that do not exceed 160gm/km will be pooled in the main 20 per cent pool. Those which do exceed 160gm/km will be pooled in the 10 per cent pool".
To find out more about how working with our leading firm of accountants in Stratford-upon-Avon and Warwickshire can help you, please contact us.
