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: