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:

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