Owner-Managed Businesses

Capital allowances on cars

Produced by Tolley
  • 19 Oct 2021 08:11

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

Capital allowances on cars

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 (over 50g/km but not more than 110g/km before April 2021)18%CAA 2001, s 104AA
Secondhand cars with CO2 emissions of 50g/km and below (110g/km or less before April 2021) or a secondhand electric car
Special rate poolNew or secondhand cars with CO2 emissions of more than 50g/km (110g/km before April 2021)6% (8% prior to April 2019)CAA 2001, s 104A
First year allowances (FYAs)New and unused cars with CO2 emissions of 0g/km (50g/km or less

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