1 July 2010

Cars which qualify for 100% tax write-off

Cars that have CO2 emissions of 110g/km or less may be eligible for a 100% write-off for tax purposes in the year of purchase.

A non-business use restriction may apply where the car is used by the proprietor/partner of a self-employed business. Such a restriction does not apply to companies providing cars to employees but there is generally an employment benefit taxable on the employee instead.

The list of vehicles that come within this range of CO2 emissions is gradually getting longer and some of the more interesting on the list include:

• BMW 3 series saloon - 320d Efficient Dynamics;

• Audi A1 and A3;

• Mini Hatch, Clubman, Cambden and Mayfair;

• various VW Golf and Polo models.

If the cars are provided to employees by employers, then the employment benefit will broadly be 10% of the list price for petrol cars and 13% for diesel. So, tax efficient for the business and tax efficient for the driver. If you would like to discuss this further please speak to Linda Warner, Tax Partner on 01483 416232 or email her on lwarner@roffeswayne.com