I was thinking about leasing a car, as my local dealer has a good deal on at the moment. But I was wondering what tax relief I’d get on it- can you talk me through it please?
I assume by “lease” you mean you are in essence renting it? In which case, if the car has emissions under 160g/km, you get tax relief on all of the payments. If the car’s emissions are above 160g/km, then 15% is blocked for tax purposes.
However, please note, under current plans the emissions level will drop from 160g/km to 130g/km on 1st April 2013 for companies or 6th April 2013 for unincorporated businesses. So if you are looking at leasing a vehicle with emissions between 130-160g/km, it might be advisable to take the contract out before April 2013.
Also, please review the invoices carefully, as half of the VAT is often blocked on lease payments- on the assumption that they often have a mixture of business and personal use.
If you would like to discuss your plans before you sign anything, your local TaxAssist Accountant would be happy to help.
By Jo Nockels Google+ Profile
Disclaimer: Advice shared in this blog is intended to inform rather than advise. Taxpayer's circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this forum, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.
Call us today on 0800 0523 555 or complete our enquiry form and we will identify your nearest TaxAssist Accountant in order to book a FREE initial consultation