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Long and winding road

19 October 2010 / Melissa Malins
Issue: 4277 / Categories: Comment & Analysis , Business , Income Tax
MELISSA MALINS provides a refresher on the car regime, compares the rules currently in play with the historic treatment, and looks at the options available


  • What are the implications for companies now?
  • The tax treatment of cars based on carbon dioxide emissions.
  • Purchased and leased cars – summary of tax treatment.
  • Worked example of employers allowances and cost to employees.
  • Other factors in comparing costs.

The tax regime for company cars underwent a significant overhaul in 2009. We had all been programmed for so many years to think of cars in line with the figure of £12 000 but with effect from April 2009 £12 000 is no longer the magic number.

Now we need not worry about costs at all any more when considering whether we have to disallow our lease costs or the rate of capital allowances available. Instead we need to consider how much our car may be polluting the air around...

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