½Û×ÓÊÓƵ

Capital allowances on cars


Produced by a Tolley Owner-Managed Businesses expert
Owner-Managed Businesses
Guidance
tag-icon Autumn Budget 2024

Capital allowances on cars


Produced by a Tolley Owner-Managed Businesses expert
Owner-Managed Businesses
Guidance
tag-icon Autumn Budget 2024
imgtext

Summary of capital allowances on cars

The current capital allowance rates applicable to cars are as follows:

Pool typeDescription of carRateLegislation
Main rate poolNew and unused cars with CO2 emissions of 50g/km and below 18%CAA 2001, s 104AA
Secondhand cars with CO2 emissions of 50g/km and below or a secondhand electric car
Special rate poolNew or secondhand cars with CO2 emissions of more than 50g/km6% (8% prior to April 2019)CAA 2001, s 104A
First year allowances (FYAs)New and unused cars with CO2 emissions of 0g/km , or car is electric 100%CAA 2001, s 45D

Cars do not qualify for the annual investment allowance (AIA).

A car still qualifies as being unused and not second hand if it has been driven a limited number of miles for the purposes of being delivered, tested or used as a demonstration car. This includes cars pre-registered to a dealer.

For unincorporated businesses where

Continue reading the full document
To gain access to additional expert tax guidance, workflow tools, generative tax AI, and tax research, register for a free trial of Tolley+â„¢
TAKE A FREE TRIAL NOW
Powered by
  • 27 Feb 2025 13:21

Home/ ½Û×ÓÊÓƵ Guidance/ Owner-Managed Businesses / Calculating trading profit and loss

Popular Articles

Corporation Tax

Premiums on the grant or surrender of a lease

Premiums on the grant or surrender of a leasePremiums on the grant of a lease ― outlineWhen a property investor grants a lease, potentially this could be done on the basis that the tenant pays a premium for the initial grant of the lease, in addition to also paying rent over the term of the lease.

14 Jul 2020 12:58 | Produced by Tolley in association with Rob Durrant-Walker of Crane Dale Tax, part of AMS Group Read more Read more
Owner-Managed Businesses

Repairs and renewals

Repairs and renewalsThe key consideration in determining whether expenditure on repairs and renewals is allowable as a deduction for tax purposes is whether it is capital or revenue in nature. In some cases, it can be relatively straightforward to identify revenue repairs. HMRC provides the

14 Jul 2020 13:23 | Produced by Tolley Read more Read more
Employment Tax

Income tax paid on behalf of employee

Income tax paid on behalf of employeeIntroductionEmployers may wish to make payments of employment income to an employee / director without the employee suffering a tax or NIC cost on that pay. In other words, the employer wants to pay an amount net of tax and NIC. In some instances, often with

14 Jul 2020 11:58 | Produced by Tolley in association with Paul Tew Read more Read more