The pre-budget report detailed the changes surrounding tax relief for business expenditure.
As with other areas of company car tax, it will form an emissions-based system from April 2009.
The key change is to capital allowance.
Cars emitting over 160g/km will get a 10 per cent writing down allowance on costs associated with that car. Models emitting less than 160g/km will get a 20 per cent WDA.
WHAT THIS MEANS
Fleets will shift virtually wholescale to models emitting less than 160g/km.
Put simply, if you’re doing business with company car drivers, the 160g/km figure will become crucial. Many companies will now simply cross out models emitting more than this from their fleet chooser lists.
It is vital you’re aware of this, so you can concentrate on the right models – and get the right cars in stock.