Taxation logo taxation mission text

Since 1927 the leading authority on tax law, practice and administration

Round the bend

09 August 2016 / Melissa Malins
Issue: 4562 / Categories: Comment & Analysis

The tax implications of company cars for owner-managed businesses


  • Increased use of personal contract plans enables many to have a new car every three to four years.
  • For the owner manager there is little advantage in transferring a company tax saving to a personal tax liability.
  • A practical example compares the outright purchase of a car with an operating lease.
  • Carbon dioxide emissions will determine the tax treatment of company cars.
  • A comparison of the relative costs of a company car measuired against a cash allowance and personal car purchase.

Down the years there has been much debate as to whether it is more tax-efficient for an employee to take a company car as part of their remuneration package or to purchase their own car. Further is it better for a...

If you or your firm subscribes to, please click the login box below:

If you are not a subscriber but are a registered user or have a free trial, please enter your details in the following boxes:

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this item in full.

Please reach out to customer services at +44 (0) 330 161 1234 or '' for further assistance.

back to top icon