The following Corporation Tax guidance note by Tolley provides comprehensive and up to date tax information covering:
The definition of a ‘car’ for capital allowance purposes is a mechanically propelled road vehicle except a:
CAA 2001, s 268A
Lorries, vans, trucks etc are therefore not ‘cars’ for capital allowance purposes and will be treated as plant and machinery.
Cars do not qualify for the annual investment allowance (AIA).
The CO2 figure used to define a low emissions car has been amended several times by Treasury order.
For expenditure on or after 1 April 2018, cars with emissions of no more than 50g/km will be eligible for the 100% FYA.
Cars with CO2 emissions over 50g/km but not more than 110g/km will be added to the main pool and written down at 18% per annum.
Finally, cars with CO2 emissions over 110g/km will be written down at 6% (8% before 1 April 2019) on a reducing balance basis in the special rate pool.
For expenditure on or after 1 April 2015, cars with emissions of no more than 75g/km will be eligible for the 100% FYA
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