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Page 8 of 9
Company Cars and Tax
7. Leasing Company Cars
7.1 For cars leased before April 2009, all the costs of leasing can be deducted from taxable profits as expenses, unless the car has a retail price of over £12,000.
- For cars leased after April 2009, there is a flat rate disallowance of 15 per cent of relevant payments for cars with CO2 emissions above 160g/km.
7.2 Only 50 per cent of the VAT charged on rentals can be claimed, unless the car is used wholly for business purposes.
7.3 Capital allowances can only be claimed if there is an option to purchase the car.
- The allowances are limited to £3,000 per year (see 6.1).
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