Capital allowances on cars

Produced by Tolley
  • (Updated for Budget 2020)
Capital allowances on cars

The following Owner-Managed Businesses guidance note Produced by Tolley provides comprehensive and up to date tax information covering:

  • Capital allowances on cars
  • Summary of capital allowances on cars
  • Definition of a car
  • Cars ― balancing allowances and charges

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 over 50g/km but not more than 110g/km (to be reduced to 50g/km and below from April 2021)18%CAA 2001, s 104AA
Secondhand cars with CO2 emissions of 110g/km or less or a secondhand electric car (to be reduced to 50g/km and below from April 2021)
Special rat

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