Hybrid cars – 100% allowance coming to an end

Date posted: 3rd Feb 2021

If you are considering acquiring a hybrid car through your company, then currently the company can claim a 100% write off on the acquisition, as long as the carbon dioxide emissions are less than 50 g/km.

However, the 100% allowance will no longer be available for such cars acquired on or after 1 April 2021 – instead the maximum relief would be a 18% allowance in the year of acquisition and thereafter on a reducing balance basis.

Given that the timing of acquisition is critical, if you are considering acquiring a hybrid car, then it may be better to do this sooner rather than later.

If you have any queries regarding company car taxation, please give us a call.

Read more articles from our February 2021 tax news below:

• Land Remediation Relief – are you overlooking this valuable corporate tax relief?
• The Budget day is approaching
• Scam alert – “HMRC” phone calls and texts
• Higher taxes for EU property owners
• IR35 – back on the agenda
• Paying your personal tax bill
• Foreign income – have you declared it to HMRC?
• Hybrid cars – 100% allowance coming to an end

Read more below:

• Tax FAQ’s
• Tax Rates 2020/21
• Coronavirus – Financial Support for Businesses