What tax relief is available on a leased car?

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?

1st February 2019

I assume by “lease” you mean you are in essence renting it? In which case, if the car has emissions under 110g/km, you can get tax relief on all of the payments. If the car’s emissions are above 110g/km, then 15% is blocked for income tax or corporation tax purposes.

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

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