New rules on low emission cars coming soon
Some of those very nice cars you’ve been looking at soon may not get the tax breaks you expected.
In a recent news item we looked at some of the advantages of leasing vehicles. However if you prefer to buy a company car (with cash, a loan or Hire Purchase) then you might want to make your decision very soon.
Currently a 100% tax write-off is available on cars with CO2 emissions that do not exceed 110 g/km. That band includes some models of the BMW 3 series and Mercedes Benz C 220 range.
However the 110 g/km level is being sharply reduced to 95 g/km from 1 April 2013. Worse still the 100% tax write-off is planned to end completely on 31 March 2015.
This means that you might need to consider pulling forward your purchase decision in order to take advantage of the current tax banding or take another look at how you finance your car or fleet.