Ask Honest John

Honest John Ask Honest John » Carbon taxbreak

Carbon taxbreak

In your review of the Toyota IQ 1.0 litre you state: "they all qualify for 100% first year capital allowance, so if your company buys one for you it can claim the entire cost against one year’s profits. That now only applies to the FIAT 500 diesel, the C1 and the 107 the Aygo, the new Fiesta Econetic, the Ibiza Eco, the Polo Bluemotion, The Honda Insight and anything else under 111g/km CO2." Can you explain what this means in real terms please?

Asked on 21 February 2009 by

Answered by Honest John
If a car emits 110g/km CO2 or less and a company buys it for the use of an employee, it can claim the entire cost as a business expense, so reduces its taxable profit by that amount. For cars emitting more than 110g/km the percentage of the purchase price that can be claimed as a business expense reduces on a sliding scale down to 10% in each tax year.

Our honest used car pricing is a little bit different to all the others. You can get to our values through make or model - you don’t have to follow a prescribed route. Plus, it’s live, which means we can react to changes in the market quicker than any printed price guide.

Honest Used Car Prices

Everything you need to know about choosing and running your company car, from how much tax you'll pay to your rights.

Company Car Guide
Dear Honest John,

Please help me choose my next car. I would like it to have:
    Select a few terms below
Similar questions
Can you explain what '100% write down' means in real terms on company cars that emit less than 110g/km CO2?
You stated that the cost of a new hybrid, such as a Toyota Prius, could be offset against tax. I am considering ordering a new Mk3 Prius as soon as they become available next month and would dearly like...
I have to buy a replacement car for one of my managers. She currently drives a 2006 Colt CZ1. This car will go to my daughter who will be 17 in August. I have considered the Aygo which is a very good car...