DFC Belfast 25 Year Anniversary

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DFC Belfast 25 Year Anniversary

028 9073 4222 facebook twitter
  • Beat Corporate Tax Changes

    Cmpanies can beat corporate tax changes due to come into effect on April 1 by taking delivery of a new low emission vehicles.

    Businesses can continue to benefit from a 100% writing down allowance if they take delivery of low emissions vehicles before 1 April 2013.

    The tax changes mean a further tightening of capital allowance carbon dioxide (CO2) emission thresholds impacting on outright purchase fleets, while a simultaneous cut in the lease rental restriction emission threshold hits the amount of relief available against taxable profits on cars above 130g/km.

    From 1 April 2013 outright purchase fleets will only be able to benefit from 100% first year allowance on vehicles that emit 95g/km or less. Cars emitting between 96g/km and 110g/km will only be able to write down 18% of the cost of the model against their corporation tax bill thus reducing the amount of tax relief available annually and as a result impacting on cash

    The tax changes also mean that fleets wanting to take delivery of a model with emissions above 130g/km will also reap tax and cash flow dividends ahead of the April 1 cuts to the writing down allowance and lease rental restriction.

    "The April 1 changes in capital allowances do not apply to cars already on the road, so taking delivery of a model prior to that date means that there is an immediate tax and cash flow advantage for businesses."

    It is important to evaluate your company car choices to ensure all fall below the 130g/km after April 1st